Budget 2026: Healey hikes taxes on banks and landlords to fund £100 handouts to 20m households
Few surprises as chancellor uses low-key speech blaming ‘global economic storms’ for stoking energy prices and cost of living crisis Budget 2026: key points at a glance Briefing: k
By The Guardian
Chancellor John Healey has announced a £100 household energy payment for about 20 million households in council tax bands A to D in England.
The payment will be made this winter, with the first money expected to reach bank accounts from January. The Government says the £2.6 billion scheme is intended to help households manage rising energy bills.
Healey announced the measure in his first Budget, describing the economic situation as being driven by “global economic storms”. Energy prices have been pushed higher by the conflict in Iran, while official forecasts point to continued pressure on household finances.
The payment will cover around 80% of households in England, according to Government estimates. Ministers hope the support will provide help through the coldest months and into spring.
The scheme will be funded partly by higher taxes on banks. The additional surcharge on bank profits will rise from 3% to 6% in January, with the increase due to last for 15 months.
Tax rates on income from property and savings will also rise by two percentage points from April. The changes will affect landlords and people receiving income from savings.
The Chancellor also announced measures affecting gambling companies and online marketplaces as part of the wider Budget package.
The Scottish and Welsh governments will receive funding linked to the scheme. Healey said he hoped they would introduce similar support in their nations, with the Welsh Government saying it would match the payment and the Scottish Government planning to replicate it.
The £100 payment will be available to eligible households in council tax bands A to D, with the money paid directly into bank accounts from January.