Budget 2026 latest: Healey to pledge energy bill relief to ‘get us through a difficult moment’ but duck major reforms

Budget 2026 latest: Healey to pledge energy bill relief to ‘get us through a difficult moment’ but duck major reforms Healey is expected to bring in a raft of measures aimed at tackling the cost of living crisis - Bookmark - CommentsGo to comments Become an Independent member to bookmark this article Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Membership today. Join todayAlready a member? Log in The chancellor is expected to announce a raft of cost of living measures including energy bill relief but will duck major reforms when he announces his Budget on Wednesday. John Healey is poised to cut household gas bills by up to £50 in a cost of living boost by scrapping standing charges on gas bills. The move could save households between £22 and £50 per year, according to The Telegraph. But the rest of the Budget is set to be a relatively modest affair as Mr Healey plans to put off major decisions on tax and spending until next year, reports suggest. It comes after the chancellor announced he will to add 2p to the price of a pint after unveiling cuts to the cost of supermarket staples including baked beans, gherkins and chocolate. He also announced the removal of import tariffs on over 100 products, as Andy Burnham pledges to deliver “breathing space” for families and businesses in the first Budget under his leadership. The move is one of a series of so-called “everyday fixes” announced ahead of Wednesday, and comes alongside changes to parental pay and carers allowance. The prime minister said the changes will “make life a little easier” for Britons. Editorial: Even a ‘boring’ Budget can be a risk, chancellor All the signs are that John Healey’s first Budget on Wednesday will be a very modest event indeed. Without precise measures to bring down the cost of living, it could leave the government looking rudderless. Even a ‘boring’ Budget can be a risk, chancellor PM promises end of carers ‘cliff edge’ in cost-of-living package The government has promised to end a cliff edge in benefits faced by unpaid carers as part of a cost-of-living package. Chancellor John Healey is expected to end the Carers’ Allowance cliff edge which has penalised unpaid carers for going over their earnings limit, even by as little as a few pence per week. The sudden end in support for breaching the limit, widely described as a scandal by campaigners, will be replaced by a taper, so the benefit will decrease by £1 for every additional pound earned. Ministers made the announcement as they set out a series of “everyday fixes” to help people with the cost-of-living crisis, which are expected to feature in Wednesday’s Budget. They also plan to make a higher tax-free mileage allowance of 55p permanent, and to slash tariffs on a range of popular foods, including chocolate, beans and gherkins, to make them cheaper for shoppers. Reform trapped in third place in polls as Burnham eyes another majority for Labour The prospect of Reform UK winning a general election appears to be disappearing after a second poll in a row left them in third place behind the Labour and the Tories. Just 24 hours after Nigel Farage and his Treasury spokesman Robert Jenrick unveiled their alternative Budget to an empty hall, a YouGov poll confirmed that Reform is trailing behind on just 20 per cent. As Andy Burnham marks 100 days as prime minister, the poll puts Labour on 27 per cent – enough to give them a small majority of eight according to the prediction website Electoral Calculus. You can read more below: Reform trapped in third place in polls as Burnham eyes another majority for Labour Analysis: John Healey’s plan for a ‘Robin Hood’ Budget may not be as risk-free as he thinks As John Healey prepares to deliver a ‘steady-as-she-goes Budget’, political editor David Maddox looks at why it may not be as dull as we have been led to believe. John Healey’s plan for a ‘Robin Hood’ Budget may not be as risk-free as he thinks Healey ‘to announce UK minimum wage will rise by nearly 4%’ in new boost for workers Chancellor John Healey is expected to unveil plans on Wednesday to raise the minimum wage by nearly 4 per cent, according to reports. The UK’s National Living Wage, which applies to workers aged 21 and over, is set to rise by 3.9 per cent, moving from £12.71 to around £13.20 ($17.63) per hour, The Times reported. Meanwhile, the National Minimum Wage for those aged 18, 19 and 20 will increase broadly in line with older workers, rising from £10.85 to approximately £11.27 an hour. You can read more below: UK minimum wage 'to rise by nearly four per cent' in new boost for workers Healey vows to give Britons ‘fresh hope for future’ in first Budget John Healey has moved to reassure voters and nervous financial markets ahead of his first Budget as chancellor with an eve-of-statement video promising “hope for the future”. At the chancellor prepares to unveil his Budget in the Commons on Wednesday, he is hoping to continue with prime minister Andy Burnham’s feelgood approach with retail offerings on the cost of living. But the City is already concerned about a planned raid on bank profits to help Mr Healey fill a black hole in public spending and provide much-needed financial headroom in anticipation of more financial shocks in 2027. You can read more below: Healey seeks to reassure nervous voters and the City ahead of his first Budget Healey will announce Budget 'for the worker' Parts of John Healey’s Budget speech have been released tonight ahead of the major announcement tomorrow. The Mirror reports Mr Healey will say his Budget is for “the worker” as he announces a raft of cost of living policies. "This is a Budget for the worker, the sole trader, the parent at the school gate, the young person desperate to start their first job or get on to start their own business,” he will say. “A Budget that gives people breathing space now, while taking the long term action needed to get costs down for good.” He will add: “This Budget is for the working people of Britain. It’s a Budget for business, big and small." Cut benefits to fund defence, say majority of Britons in new poll ahead of Budget The majority of Britons back cutting welfare spending to boost defence, a new poll has found, as John Healey prepares to deliver his first Budget under Andy Burnham’s leadership. Former defence secretary Mr Healey is under pressure to find billions of savings to help ramp up Britain’s military spending, whilst also ensuring the string of pledges set out by the prime minister during his first weeks in office are fully funded. Sir Keir Starmer and Rachel Reeves faced a massive backbench rebellion when they sought to table their own welfare reforms in June 2025 and were forced to perform a U-turn. But new polling from More in Common suggests the majority of voters believe its worth investing more in defence even if it means cutting benefits. You can read more below: Cut benefits to fund defence, say majority of Britons in new poll ahead of Budget Chancellor 'to cut gas bills by up to £50' John Healey is preparing to cut gas bills by up to £50 as part of a range of measures designed to help households bring down the cost of living in Wednesday’s Budget, it has been reported. The chancellor will announce plans to end standing charges on household gas bills alongside new measures to curb the Energy Secretary’s power to impose net zero levies on household bills, reports The Telegraph. Join our commenting forum Join thought-provoking conversations, follow other Independent readers and see their replies Comments