Chancellor John Healey has unveiled the Government's 2026 Budget, with measures designed to ease the cost of living, support British businesses and invest in the country's future. Announced on 28 October, the Budget includes help with energy bills, higher wages, cheaper motoring, housing support and billions of pounds of investment in British industry.
The Key Benefits at a Glance
Household Bills and Living Costs
- £100 energy payment for up to 20 million households in council tax bands A to D in England during 2027, with funding for similar support elsewhere in the UK.
- Lower electricity bills through an extended temporary VAT cut, expected to reduce the annual price cap by around £50 from April 2027.
- Gas standing charges to be abolished, with costs moved into unit prices. Savings will vary between households.
- Lower import tariffs on more than 100 products, including everyday foods such as baked beans and chocolate.
Wages and Working Families
- National Living Wage rising to £13.21 an hour from April 2027, worth approximately £910 more annually for a full-time worker on that rate.
- Parental pay extended to more than 160,000 additional parents, including self-employed fathers and partners.
Drivers and Transport
- 5p fuel duty cut extended for another six months, with the planned inflation-linked increase postponed until July 2027.
- Cheaper public EV charging, with average annual savings of £150 expected for drivers using eligible lower-powered chargers.
- Improved tax-free mileage allowances for around three million employees and self-employed workers.
Housing and First-Time Buyers
- 70,000 people to be helped onto the property ladder through the new Your First Home Scheme.
- £1.5 billion extra for social and affordable housing, taking planned investment above £40 billion over ten years.
- New First Time Buyer ISA to help people save for deposits.
- £432 million additional funding over two years to tackle rough sleeping.
British Businesses and Jobs
- Business rates relief expanded, meaning around half of England's retail, hospitality and leisure properties will pay no business rates.
- Industrial electricity bills cut by up to 25% for more than 10,000 eligible businesses from April 2027.
- £2.5 billion aerospace partnership with Rolls-Royce, initially supporting 3,300 jobs.
- Over £1 billion in new life sciences investment, supporting facilities in Manchester, Oxford and Loughborough.
- £20.4 billion additional funding for the National Wealth Fund and British Business Bank, expected to create or support 140,000 jobs.
- New tax relief for entrepreneurs, including a reduced Capital Gains Tax rate for qualifying business founders.
Pensions and Savings
- Around 500,000 pensioners to benefit from a new tax allowance from April 2027, with approximately 290,000 expected to pay no Income Tax.
- £20,000 annual cash ISA allowance retained for all savers.
Why This Is Good for Britain
The Budget combines short-term financial support with longer-term investment in British jobs, manufacturing, technology and housing. Measures to reduce household costs could provide welcome relief, while support for businesses and major investment projects could strengthen the UK economy.
Not every household will benefit equally, and many changes will take effect in 2027 or later. However, the package offers opportunities for lower bills, higher earnings and more investment in British communities.
Source: HM Treasury, Budget 2026, 28 October 2026.
