The Guardian published a Ben Jennings cartoon about Chancellor John Healey’s 2026 Budget on Wednesday, Oct. 28, the day the government announced a household energy payment and a temporary tax increase for banks.
The Guardian’s title describes Healey’s Budget as a “breathing room” Budget. In his speech, Healey said families look to government for “a bit of breathing space.”
HM Treasury, the UK’s finance ministry, said the Household Energy Payment will provide £100 from January 2027 to eligible households in council tax bands A to D in England. Up to 20 million households in England are eligible. Devolved governments will receive funding to provide similar support elsewhere in the United Kingdom.
The Budget document says the Bank Corporation Tax Surcharge will rise from 3% to 6% for 15 months, starting Jan. 1, 2027, and ending March 31, 2028. The government expects the increase to raise £1.5 billion to fund support. The payment is intended to help households facing higher energy costs; the government’s energy-payment notice linked rising prices to conflict in the Middle East.
The surcharge will be legislated through Finance Bill 2026-27. The government said full eligibility criteria for the Household Energy Payment will be published later.
