The UK government’s October 28 Budget announcement outlined support for household energy costs alongside longer-term changes to energy policy. The measures have different implementation dates; their announcement does not mean every household receives a new payment immediately.

For 2027, the government plans a £100 Household Energy Payment for up to 20 million households in council-tax bands A to D in England. Funding for comparable support is to be provided to the other UK nations. Temporary electricity VAT relief is to continue until July 1, 2027.

The package would be financed by raising the Bank Corporation Tax Surcharge from 3 percent to 6 percent for 15 months, ending March 31, 2028. It also said planned hydrogen projects would receive public funding instead of a proposed charge on gas bills.

The government will ask Ofgem to move gas standing charges into unit rates and intends to set out targeted mitigation. Redistribution affects households differently. Implementation and consumption will determine individual bills.