Budget 2026: John Healey announces £100 payments to 20m households to cut energy bills amid global economic storms

Chancellor John Healey unveiled a Budget aimed at navigating “global economic storms,” with a headline measure giving £100 to 20 million households in council tax bands A to D to help with energy bills and the cost-of-living crisis. The payment will cost £2.6bn and is funded by a smaller-than-expected windfall tax on banks. Healey framed the package as a direct response to global economic pressures, emphasizing support for ordinary families. The measure comes as part of a broader set of policies designed to ease financial strain and boost consumer confidence. With energy costs remaining a key concern for voters, the Chancellor is betting that targeted cash support will provide immediate relief while signaling fiscal prudence through the bank levy. The Budget’s success may hinge on whether the £100 payment is seen as enough to offset rising household expenses. As Britain faces ongoing economic uncertainty, Healey’s first budget sets the tone for Labour’s approach to managing the economy and supporting households in challenging times.