Millions of working people will miss out as Healey's £1bn energy bailout goes mainly to benefits claimants
From the Newshound archive · first published 7 October 2026.
Diesel has passed £2 a litre in Britain for the first time, as Shell expects to nearly double its refining profits per barrel.
Chancellor John Healey is drawing up a £1bn plan ahead of the 28 October Budget to address rising energy costs, with most of the money expected to be used to raise the Warm Homes Discount from £150 to £250 a year. The scheme focuses on means-tested benefit recipients — including universal credit and housing benefit claimants — meaning millions of working people outside the benefits system would receive no direct support. Bills are projected to approach £2,000 a year from January after the energy price cap rises by roughly 16%, a jump of £276 on the typical annual bill.
Healey has reportedly rejected a costlier proposal from Net Zero Secretary Miatta Fahnbulleh to remove all levies from bills, a move that would have carried a price tag of more than £3bn.
Around 4.5 million households are already unable to adequately heat their homes, while food bank demand is running 45% above 2019 levels.
Officials at the energy department are also developing longer-term proposals for a social tariff that would place a ceiling on what suppliers can charge customers, rather than relying on one-off rebates.
