UK announces £100 household energy payment and fuel duty cut

Chancellor John Healey has announced a £100 household energy payment for 20 million households as part of the UK Budget, alongside measures to ease energy costs and support businesses.

The payment will be made directly into bank accounts this winter, with funding allocated to devolved governments in Scotland, Wales and Northern Ireland to introduce equivalent support.

The Budget also extends the 5p fuel duty cut until next July and delays the planned end of a VAT cut on electricity, which Healey said would reduce the annual price cap by £50. The government will also introduce reforms to gas standing charges from next year.

However, the economic outlook remains challenging. The Office for Budget Responsibility expects UK GDP to grow by 1.2% this year, slowing to 1% next year, while inflation is forecast to reach 3.1% in 2026 and 3.4% in 2027.

Opposition leader Kemi Badenoch criticised the Budget, warning that the UK’s tax burden would reach its highest level in history. Other measures include a temporary increase in the bank surcharge, changes to business rates and a 3.9% rise in the minimum wage for workers aged 18 to 20.

via BBC