UK Finance Minister Healey Announces 100 Pound Energy Subsidy for Households

UK Finance Minister John Healey unveiled the first major surprise of this budget: a 100 pound energy subsidy for households.

He referenced a policy announced this morning—scrapping the fixed standing charge on gas bills.

"This winter, for the 20 million households in Council Tax bands A to D, we will provide a 100 pound energy subsidy per household," he said. He stated the subsidy will be paid directly into residents' bank accounts to help cope with rising energy bills.

He added: "The total scale of this subsidy plan is 2.6 billion pounds, easing the burden during the coldest months and helping people get through to spring."

Healey also called on devolved local governments to introduce similar subsidy schemes in tandem.

The Chancellor then announced another beneficial measure: extending the VAT reduction policy until July.

Healey said: "Two tax cuts this winter: VAT reduction saves 50 pounds, Council Tax reduction saves 100 pounds; next year will bring fairer bills; and in the long term, we will advance deep reform of the energy market to push down electricity prices."