Chancellor John Healey is set to deliver his first Budget today, with confirmation that the removal of standing charges from gas bills will be among the announcements. The change is expected to save millions of British families around £45 a year, with the charge branded outdated and unfair.
Mr Healey will order Ofgem to ensure the charges are removed next year, or as soon as possible after, meaning households should not have to wait too long to feel the benefit.
Everyday fixes already introduced
The government has already introduced a series of “everyday fixes” designed to make daily life easier. These include slashing tariffs on a range of popular foods to make supermarket shopping cheaper, and making a higher tax-free mileage allowance of 55p permanent.
The Carers’ Allowance cliff edge is also being replaced with a fairer taper system, to stop unpaid carers from being penalised for going just a penny over their earnings limit.
Energy bills and fuel duty under scrutiny
Energy bills are set to rise again this winter, with suggestions that the government could look to remove standing charges from gas bills to lower costs for households. It has also been widely rumoured that fuel duty could be frozen once again, to ease pressure on drivers facing higher petrol and diesel costs linked to the Iran war.
However, the Chancellor will have limited scope for big Budget giveaways due to stretched public finances. Questions remain over which taxes could potentially rise and whether any tax cuts will be announced.
State pension and personal allowance
The personal allowance is currently frozen at £12,570 until 2031. The state pension is set to rise above this to £13,036 from next April, but the government is expected to finally announce details on how those who rely solely on the state pension will be protected from paying income tax.
The full details of the Budget will not be known until the Chancellor delivers his speech at around 12.30pm.
