Healey's £100 Budget handout on energy bills will be swallowed by a January price cap rise of nearly £300
John Healey's Budget scraps standing charges on gas bills and extends the VAT holiday on electricity to July, though the gas change will not take effect before 2027.John Healey's Budget hands HMRC sweeping new powers to deduct overdue tax directly from bank accounts without taxpayer agreement.
Chancellor John Healey's £100 energy bill rebate — funded by raising the bank surcharge from 3% to 6% for 15 months — will go to 20 million households falling within council tax bands A to D. Energy experts caution that the price cap is expected to climb by nearly £300 in January, driven by the conflicts in Ukraine and the Middle East, which would eliminate the benefit entirely. The Office for Budget Responsibility cut its growth forecast for next year to 1%, and its own committee member Professor David Miles described the broader picture as 'pretty grim'.
The £100 will be deducted from council tax bills this winter, costing the Treasury £2.6 billion in total.
Campaigners warn the rebate could hurt the very households it targets: bigger families and poorly insulated homes will face higher unit rates after standing charges are scrapped.
