Chancellor John Healey has announced a £100 payment to help with energy bills this winter for 20 million households across the UK. The extra support was confirmed in his Budget, delivered from the House of Commons.
As Chancellor of the Exchequer, Mr Healey is responsible for controlling the UK's economy and the distribution of funds. The payment will go to households in council tax bands A to D.
Chancellor's announcement
Mr Healey said: "I know rising energy bills are a real worry and people look to government to give them a bit of breathing space. So this winter for 20 million households in council tax bands A to D, I am announcing a £100 energy payment for households."
He added: "That's a £2.6 billion scheme to take the pressure off in the coldest months and see people through to the spring."
The Chancellor also said: "The Scottish, Welsh and Northern Ireland governments will receive their share of the funding, but I call on them to do the same and give people in all nations in the UK breathing space on their energy bills this winter."
Scrapping gas standing charges
The announcement followed news that the government would be removing standing charges on gas bills. These charges are added to bills regardless of how much gas a customer uses.
The Chancellor will ask Ofgem to deliver the removal of these charges, which are £108 a year for the typical household on average, in 2027 or as soon as possible after. The aim is to tackle the cost of living crisis and give households "breathing space".
Instead, these fixed costs will be paid on the unit rate, which could save 60% of account-holding households around an average of £45 off their annual bill.
Chancellor's statement
Announcing the changes, Mr Healey said: "Gas standing charges are unfair and outdated so I am scrapping them to give millions of households a bit of breathing space."
He added: "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."
