Chancellor Healey to Offer Gas Bill Cuts and Cost-of-Living Measures in Budget 2026
John Healey is set to announce gas-bill relief, tariff cuts and other modest measures aimed at easing the cost of living, while postponing major tax and spending reforms.
The UK chancellor, John Healey, is expected to unveil a Budget that focuses on immediate cost-of-living relief rather than large-scale fiscal reforms. One of the headline proposals is to remove standing charges on household gas bills, which could lower annual costs for families by between £22 and £50, according to estimates.
Other announced measures include a 2-pence increase in the price of a pint, cuts to the price of staple foods such as baked beans, gherkins and chocolate, and the removal of import tariffs on more than 100 products. The Budget also contains changes to parental pay, carers’ allowance and a permanent increase to the tax-free mileage allowance.
"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," Healey is quoted as saying in a pre-Budget video.
The prime minister, Andy Burnham, described the package as providing "breathing space" for families and businesses. While the chancellor plans to defer major tax and spending decisions until the following year, he will also announce a freeze on NHS prescription charges at £9.90 per item and a rise in the minimum wage of nearly 4 %.
Analysts note that the modest scale of the Budget reflects limited fiscal headroom amid higher borrowing costs and ongoing economic pressures from international market turmoil.