Budget Announcements 2026 – Lowering Energy Bills
The Chancellor announced the budget this week with some changes regarding energy bills due to come into effect next year.
In 2027 the government will provide a Household Energy Payment of £100 to all residents living in Council Tax bands A to D in England. This will cover up to 20 million households and you can check your Council Tax band by entering your postcode on the GOV.UK Website – Check your Council Tax Band.
The temporary VAT cut on electricity bills, which came into effect on 01 October 2026, has been extended to 01 July 2027.
The government is also removing standing charges on gas bills. Standing charges are the daily costs you pay to your supplier to have access to energy, regardless of how much energy you use. These costs will move over to the unit rate, giving you more control over what you spend.
If you would like further advice on your energy bills or information on reducing your usage, please contact Alex, our Energy Advisor, by calling 0203 393 7011 or emailing energyadvice@raid.charity.
