UK BUDGET: Healey extends fuel duty cut, support for energy costs

Chancellor of the Exchequer John Healey on Wednesday announced a slew of measures to ease pressure on households amid what he called a cost of living crisis.

Before his statement, the chancellor announced that standing charges on gas bills, which cover the cost of delivery to homes and businesses, will be scrapped from 2027 "or as soon as possible after".

In his statement, Healey said the government will set out "similar reforms to follow" for electricity.

In addition, he said he will extend the VAT cut on electricity through the winter and spring to July. This action will take "GBP50 off the annual price cap", he estimated.

Around 20 million households in council tax bands A to D will receive a £100 household energy payment this winter, paid directly into bank accounts for help with rising energy bills, Healey added. This will cost £2.6 billion, he added.

The 5 pence fuel duty cut will be extended until next July to support motorists hit by higher fuel costs.

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