Healey cuts gas standing charges to save households £45 as Budget lands

Chancellor John Healey has delivered his first Budget, unveiling a package designed to ease the squeeze on household finances while addressing defence and housing needs. The announcement, made on Wednesday, 28 October, comes under the leadership of new Prime Minister Andy Burnham, with the Treasury confirming that standing charges on gas bills will be scrapped from 2027 or as soon as possible thereafter, according to The Independent ^[3].

This move is expected to result in average annual savings of £45 for 60 per cent of households. Fixed costs will instead be paid on the unit rate. Mr Healey stated he would use the autumn statement to cut energy bills "for good," signalling potential future removal of fixed daily fees on electricity. The Sun reported that the Chancellor is under significant pressure to explain what help is available amid rising living costs ^[1].

Beyond energy, the Metro noted that recent reports suggest over £1,000,000,000 will be provided for social and affordable housing in England. Mayors and regional leaders are also set to receive greater powers and funding to invest in house-building ^[2]. The Chancellor added 2p to the price of a pint as part of a broader package that includes cuts to the cost of supermarket staples such as baked beans, gherkins and chocolate. Import tariffs on over 100 products are also being removed.

The Budget also addresses national security. Healey is expected to announce support for small breweries and increased investment in defence. This follows Wes Streeting’s warning that the UK must be prepared for conflict within 1,000 days. The Metro highlighted that the ongoing war in Iran had a "strong influence" on the fiscal decisions, with Healey noting he and Burnham were "in lockstep" in their determination to meet fiscal rules ^[2].

The announcement began at 12.30pm and was broadcast live on BBC Two, BBC iPlayer, ITV, Sky News and Parliamentlive.tv. The Independent reported that Andy Burnham pledged to deliver "breathing space" for families and businesses in this first Budget under his leadership ^[3]. The government has framed the measures as necessary responses to global instability and domestic economic pressure, balancing short-term relief with long-term strategic investments.