Chancellor John Healey's first budget was overshadowed by an accidental X-rated slip during his Commons address, when he mispronounced the Hampshire town Aldershot as 'Aldersh*t'. The blunder, which occurred while he announced a series of energy bill lifelines, was quickly seized upon by listeners, with one remarking: "JOHN HEALEY JUST SAID "ALDERSH*T" BY ACCIDENT. Almost worth listening to the Budget for."
Energy Bill Support Announced
During the address, Healey offered hope to Brits struggling with the cost of living crisis, announcing a £100 cash payment for 20 million households in council tax bands A to D, at a cost of £2.6 billion. The Chancellor said the measure would give Brits "breathing space" on energy bills.
He also announced that gas standing charges are to be scrapped, with similar reforms to follow for electricity bills. He said it would help almost two-thirds of households save an average of £45 a year.
Criticism Over Impact
However, campaigners argue the scheme will "barely dent" the price hikes expected over the winter. Simon Francis, co-ordinator of the End Fuel Poverty Coalition, said: "The Chancellor talked the talk on energy bills, but ultimately failed to walk the walk."
Ofgem's price cap rose by 3.6% to £1,723 for a typical household on October 1, with a further rise of around 22% forecast in January. Francis added: "Wholesale gas prices have tripled since February and bills are expected to rise further during the sixth winter of high energy costs. Yet the only immediate support is a payment that will barely dent the predicted rise households face in January. Because it is paid directly into household accounts in England, it may not even be spent on staying warm this winter."
Reactions and Forecasts
Citizens Advice chief executive Dame Clare Moriarty said: "We welcome efforts to ease the relentless cost-of-living squeeze. Additional support this winter will give most households a helping hand, but significant gaps remain. With energy prices expected to soar, adding £60 a month to already inflated bills, many are left facing another difficult winter."
Cornwall Insight warned the savings from the gas standing charge shift would be "small" in relation to recent bill rises, but noted it could boost the transition to heat pumps. Office for Budget Responsibility economist David Miles described a "pretty grim picture" with more people living paycheck to paycheck, noting "virtually no growth per person" in real household disposable income, partly due to energy price increases. Over a 10-year period starting just before Covid and up to 2029, he projected a possible 1% increase in household disposable income, calling it "a dismal period in British economic history."
