Budget 2026 live: Martin Lewis hails plan to scrap ‘poll tax on energy’ after meeting chancellor at No 11

John Healey has announced he is scrap standing charges on gas bills for millions of people as part of cost of living measures in his first Budget today.

Standing charges on gas bills, which cover the cost of delivery to homes and businesses, will be scrapped from 2027 “or as soon as possible after”, the Treasury said on Wednesday morning. The move could reportedly save households between £22 and £50 per year.

But the chancellor is set to make the rest of the Budget a relatively modest affair, as he 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.

Martin Lewis meets Healey at No 11 just hours before Budget

Harriette Boucher28 October 2026 08:22

Harriette Boucher28 October 2026 08:21

What can we expect in the chancellor's first budget today?

John Healey is delivering his first budget today against the backdrop of a difficult domestic economic situation, made worse by the international market turmoil caused by the Iran war.

He will have limited scope for big Budget giveaways due to the stretched public finances and significantly reduced headroom as a result of increased borrowing costs.

These are some of the announcements you can expect from the chancellor:

• Scrapping the carers’ allowance cliff edge

• Making a higher tax-free mileage allowance of 55p permanent

• Slashing tariffs on a range of popular foods including chocolate and gherkins

• Extending parental pay to more than 150,000 parents each year

• A rise in the minimum wage by nearly 4 per cent

• More than £600 million for various projects on the development and safe use of AI

• A £7 million fund for a feasibility study into a possible future bid to hold the Olympics and Paralympics in northern England

• An initial £285 million to give mayors and regional leaders in England more money and power to invest in projects in their areas

• More than £1 billion for social and affordable housing

• A further £432 million for the rough sleeping programme

Harriette Boucher28 October 2026 08:05

Harriette Boucher28 October 2026 08:05

What time is the Budget 2026 announcement?

The Budget is one of the biggest events in the UK's political and economic calendar, when the chancellor sets out the government's plans for taxation, public spending and the wider economy. Delivered in a speech to MPs in the House of Commons, the Budget outlines how the government intends to raise and spend money.

UK government borrowing rose by more than expected to £24.5 billion for last month, underscoring the constraints in the public finances ahead of the Budget.

Read more:

What time is the Budget 2026 announcement?

The Budget is one of the biggest events in the UK's political and economic calendar, when the chancellor sets out the government's plans for taxation, public spending and the wider economy

Harriette Boucher28 October 2026 07:57

Abolishing standing charges amounts to 'tinkering'

John Healey’s move to scrap standing charges on gas bills amounts to “tinkering”, the Greens have said.

A party spokesperson said: “Abolishing standing charges is more tinkering from a government that is failing to take the bold action needed to end the cost-of-living crisis.

“Energy bills have skyrocketed in recent years and are set to rise by hundreds of pounds again this winter.

“‘Hope’ is an easy thing to promise but will not be delivered by a business-as-usual Budget.”

Harriette Boucher28 October 2026 07:54

'Vulnerable' people could still be made to pay standing charges

A fuel poverty group has said the government has “serious questions” to answer around who will have their standing charges scrapped over fears vulnerable people will still have to pay.

Simon Francis, coordinator of the End Fuel Poverty Coalition, welcomed the the Treasury’s announcement this morning, saying “it will bring real relief to many low-income households who use very little energy and for prepayment customers it could stop debt building up in the summer months.”

He added: “But despite the positives of the gas standing charges proposal, millions of households won't see a saving. This means ministers have serious questions to answer about who they are and, if they are vulnerable or on low incomes but have high energy needs, how they will be protected.

“The Treasury's figures also assume nobody changes how much energy they use, so they tell us nothing about people who already can't afford to heat their homes safely. We need proper modelling and monitoring of whether a higher unit cost will deter them from using the amount of energy they need to stay safe.

“Disabled people, those with long-term health conditions and families with young children often have no choice but to use more energy and many already miss out on the Warm Home Discount. Support for them must be in place before this change happens, not promised in due course.”

Harriette Boucher28 October 2026 07:43

PM 'determined to reform broken energy market'

Andy Burnham has said he is “determined to reform our broken energy market” after the Treasury announced that standing charges on gas bills would be scrapped.

The prime minister said it was about “basic fairness” and giving people more control.

Standing charges are due to abolished next year for around 23 million homes.

John Healey said: “Gas standing charges are unfair and outdated so I am scrapping them to give millions of households a bit of breathing space.

“My Budget will draw a line in the sand on an energy policy that has failed British billpayers for years, letting extra costs on bills pile high and leaving households even more exposed to global shocks.”

Harriette Boucher28 October 2026 07:34

Watch: Martin Lewis visits Number 11 Downing Street before Budget announced

Harriette Boucher28 October 2026 07:29

Breaking: Chancellor says he will scrap standing charges on gas bills ahead of Budget

Standing charges on gas bills will be scrapped from next year for around 23 million homes, the Treasury has announced.

The charges are a fixed daily fee added to bills, regardless of how much gas a customer uses, and cost around £108 per year for a typical household.

The Treasury said Chancellor John Healey will today ask regulator Ofgem to remove standing charges “in 2027 or as soon as possible after”.