Autumn Budget 2026 live updates: John Healey hosts Martin Lewis at no 11 and scraps standing gas bill charges

By LETTICE BROMOVSKY, NEWS REPORTER and PATRICK HARRINGTON, UK NEWS REPORTER

Updated: 07:17 GMT, 28 October 2026

John Healey will scrap standing charges on gas bills for millions of Britons in the Budget this afternoon, the government has announced.

The Chancellor had promised to get 'energy costs down for good' and provide 'breathing space' for hard-pressed families.

Standing charges, which cover the cost of delivery to homes and businesses, are the feature of energy bills people complain about most, according to energy companies.

They will be scrapped from next year 'or as soon as possible after', the Treasury said this morning.

Instead, fixed costs will be paid on the unit rate, with the government estimating that 60 per cent of UK households will save an average of £45 per year. 

Mr Healey will deliver his Budget statement to the House of Commons at around 12.30pm, amid mounting pressure to ease the cost-of-living crisis, boost Britain's struggling economy and plug a multibillion-pound hole in the public finances.

The Chancellor is expected to announce further measures targeting fuel duty and businesses, while speculation mounts over a potential tax raid on banks.

Follow the Daily Mail's live coverage below.

Breaking:Standing charges to be scrapped from household gas bills

The Chancellor will remove standing charges from household gas bills for tens of millions of people, the government has announced.

Standing charges cover the cost of delivery to homes and businesses, but will be scrapped from next year 'or as soon as possible after', the Treasury said.

Instead, fixed costs will be paid on the unit rate, with the government estimating that 60 per cent of households will save an average of £45 per year.

Standing charges are fixed daily fees applied separately to gas and electricity bills, which customers pay regardless of usage.

Healey quit the government over defence spending - will he now follow through?

John Healey dramatically quit as Keir Starmer's Defence Secretary on June 11 - and the PM resigned 11 days later.

He complained that Starmer was refusing to make the necessary commitments to increases in defence spending.

Mr Healey wrote in his resignation letter: 'As we have regularly discussed, I am certain that a headmark date for 3% of GDP on defence in 2030 is what Britain must set.'

So, now with his hands on the levers, will the Chancellor follow through on his assertion? It seems not.

Mr Healey is expected to outline modest increases to defence spending, including filling a £5billion hole in the Defence Investment Plan by cutting Net Zero and road projects.

But he is not expected to commit to raising defence spending to three per cent of GDP by 2030.

Chancellor to duck much-needed welfare reforms - and increase handouts by £6m

By Jason Groves, Political Editor

The Chancellor will swerve welfare reform in today's Budget – as he hands out billions of pounds more to benefit claimants.

John Healey will not curb runaway welfare spending despite growing pressure on the public finances.

Instead, he is expected to increase the tax burden to the highest level on record to help boost handouts.

Mr Healey has set aside £5.5billion to support a 3.5 per cent increase to benefits paid to ten million people, Labour sources told the Daily Mail.

He is also expected to earmark at least another £1billion to subsidise the fuel bills of those on benefits and low incomes this winter.

Read the rest of our Political Editor's report ahead of the Budget:

What can we expect to hear today?

The Chancellor is said to be planning a 'steady-as-she-goes' Budget with some key measures to provide 'breathing space' to hard-pressed Brits.

These are expected to include energy bills support for poorer households, a freeze on fuel duty, action to help first-time buyers, and tax relief for smaller businesses.

Minimum wage for young people will get a rise next year - though not by as much as in recent budgets.

Mr Healey is set to bring in cash to fund these moves by launching a fresh raid on banks and a new crackdown on online retailers such as Amazon, eBay and Temu.

But - in contrast to his predecessor Rachel Reeves - he is not thought to be planning any huge tax and spend changes.

Labour promised not to raise VAT, income tax, National Insurance or corporation tax – which account for three-quarters of tax revenues.

Burning the midnight oil in Number 11

A single light remained on inside Number 11 Downing Street, the Chancellor's residence, at 11:15pm last night.

What has the Chancellor said about the Budget?

The Chancellor John Healey's headline phrase ahead of the budget has been 'breathing space'.

This has been interpreted to mean he wants to ease the pressure felt by struggling households from soaring costs - such as energy prices.

He has also promised to make the country 'growth Britain again', by building confidence in British business.

Mr Healey has said: 'This Budget is about getting Britain through this difficult moment but it’s also about putting Britain on a future path, a better future path.'

What time does the Budget 2026 announcement start?

Mr Healey is expected to outline the proposals at approximately 12.30pm on Wednesday in the Commons.

It should take place immediately after Andy Burnham has finished his weekly despatch box showdown with Kemi Badenoch at Prime Minister’s Questions.

Welcome to the Daily Mail's Budget live blog!

Chancellor John Healey will unveil his first Budget today as millions of Britons brace for potential tax hikes and changes to their household finances.

Follow along for all the latest announcements, political reaction and analysis of what the Budget means for your money.