Budget 2026: what it means for your wallet, your mortgage and your pay
How the chancellor’s measures on tax, benefits and pensions will affect your personal finances Healey offers £100 payment to households to help navigate ‘global economic storms’ Bu
By The Guardian
Chancellor John Healey has announced a £100 payment for around 20 million households in England to help with energy costs this winter.
The one-off Household Energy Payment will be available to homes in council tax bands A to D. The money is expected to be paid directly into bank accounts from January.
The scheme is funded through additional tax on banks and is intended to support households with rising energy bills through to the spring.
The Government has also announced plans to scrap standing charges from household gas bills next year, or as soon as possible. The Treasury said the change would save 60% of households an average of £45 a year.
For graduates, the repayment threshold for Plan 2 student loans will remain frozen at £29,385 for three years from next April. Borrowers repay 9% of earnings above the threshold.
That means graduates whose salaries rise above the frozen figure could begin repayments, or pay more each month, even if their earnings have not increased significantly in real terms.
The threshold applies to Plan 2 loans issued in England from 2012. Student groups, the Rethink Repayment campaign and a group of 130 MPs and peers have called for the freeze to be reversed.
The Government has said it wants to make the student finance system fairer for students, graduates and taxpayers.
The personal income tax allowance remains frozen at £12,570. This means people may pay more tax as their earnings increase, even where tax rates themselves do not change.
The Budget measures form part of what Mr Healey described as support to give households more financial breathing space during continuing pressure on bills and household budgets.