Budget 2026: £100 energy payment for households in England and higher minimum wage
On 28 October 2026 Chancellor John Healey announced a £100 payment for households in England in council tax bands A–D, and a 3.9% rise in the minimum wage.
Author: Editorial teamPublished: 2 min read
Contents
Chancellor John Healey presented the autumn Budget to the House of Commons on 28 October 2026. Key announcements include help with energy bills and a higher minimum wage.
£100 for energy
Mr Healey announced a £100 payment for 20 million households in council tax bands A to D. He said it would help as energy bills rise because of the conflict in the Middle East. The scheme costs £2.6bn, and the money will be paid directly into bank accounts.
According to the House of Commons Library, the payment will go to households in England and is due to be paid from January 2027.
Higher minimum wage
Mr Healey announced that both the National Minimum Wage and the National Living Wage will rise by 3.9%. The House of Commons Library says the change takes effect in April 2027, in line with Low Pay Commission recommendations. The Chancellor said the rise will affect 2.3 million of the lowest-paid workers.
Polish Express reports that the current rate is £12.71 an hour for those aged 21 and over, and £10.85 for those aged 18–20. After the rise they would be £13.21 and £11.27 an hour respectively. These figures come from one source, and we did not find them confirmed in the government material available to us.
Energy bills in the longer term
In his speech the Chancellor also spoke of two tax cuts for this winter: £50 off VAT and £100 off council tax. Polish Express also reports that the VAT cut on electricity bills is to stay in place until July 2027, and that the government plans a reform of how energy bills are calculated. The outlet also describes a plan to scrap the gas standing charge. We have not confirmed these details in a second source.
What this means for you
The £100 payment applies to households in England whose home is in council tax bands A to D. It is worth checking your band on your council tax bill. Details of how the payments will work, including for tenants, have not yet been described in the sources we used. People paid the minimum wage will see a higher hourly rate from April 2027.
Sources
This article was prepared automatically by AI from the listed sources and published without prior editorial review. Spotted a mistake? Use the “Report an error in this article” button.
Photos
- Cover: „light bulb, energy, light, bulb, electric”, author: Couleur, licence Pixabay Content License; cropped or resized.
- Photo 1: „money, egyptian, pound, note, fifty”, author: Squirrel_photos, licence Pixabay Content License; cropped or resized.
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