What does the Autumn Budget mean for you? | Tenant news

Chancellor John Healey has provided some help for households in his 2026 Autumn Budget  with a package of short-term relief on living costs.

Here's a look at the changes the Chancellor presented to Parliament on 28 October and what they could mean for you.

Help with energy bills

One of the key announcements was a £100 Household Energy Payment for eligible households in England. Payments are due to start in January 2027 and will go directly into bank accounts.

To qualify, your home must be your main residence and be in Council Tax band A, B, C or D. The full eligibility rules are still to be confirmed, so keep an eye out for further details.

The government has also extended the temporary removal of VAT on household electricity bills until July 2027. This means that your energy supplier will not be adding the usual 5% vat charged on your electricity bill. It’s expected that customers will save an average of  £45 per year.

These measures could help ease some of the pressure on household budgets, although the amount you save will depend on your circumstances and energy use.

Gas pricing 

The government plans to remove the daily standing charge on gas bills by the end of 2027, or as soon as possible afterwards.

Standing charges are fixed costs you pay for having a gas supply, even if you use very little gas. Under the proposed changes, these costs will be added to the price you pay for each unit of gas you use.

This could lower bills for some households, particularly those that use less gas. However, people who use more gas could pay more, so the impact will vary.

Wages and benefits

The National Living Wage and National Minimum Wage are due to increase by 3.9% in April 2027. If you're earning the minimum wage, this could mean an increase from:

• £12.71 to £13.21 an hour (+50p) if you’re aged 21 and over (National Living Wage)
• £10.85 to £11.27 an hour (+42p) if you’re aged 18 to 20
• from £8.00 to £8.31 an hour (+31p) if you’re aged 16 to 17
• £8.00 to £8.31 an hour (+31p) if you’re an apprentice.

Changes to Carer's Allowance were also announced. The government plans to replace the current earnings limit with a system where the benefit gradually reduces as earnings increase, rather than being lost completely after going over the limit.

This change isn't expected to happen until 2030–31, so the current rules still apply. No other changes to benefits were announced in the Budget.

Where to get help

Some of the changes won't take effect until next year or later, so it's worth checking what help you can access now if you're struggling with household costs.

Your local council may oSome of the changes won't take effect until next year or later, so it's worth checking what help you can access now if you're struggling with household costs.

Your local council may offer help with essential bills, food and other living expenses. You can also check whether you're receiving all the benefits you're entitled to.

Habinteg can refer tenants to Disability Rights UK for a free benefits health check. They can review your benefits and help you find out if you're entitled to claim anything more. To find out more or request a referral, call us on 0300 365 3100 and select option 5.

For free advice about managing bills and debt, visit Citizens Advice or MoneyHelper.

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