Budget 2026 live updates: Help for Nottinghamshire residents on minimum wage

Delivering his first Budget he said: “For 2.3 million of our lowest paid workers, I am increasing both the national minimum wage and the national living wage by 3.9 per cent.”

Chancellor John Healey also pledged to help first time buyers by funding the Your First Home equity loan scheme for first-time buyers with £4.7 billion of Government-backed lending.

Nottinghamshire households in council tax bands A-D will meanwhile be amongst 20 million households in council tax bands A-D to receive a £100 ‘household energy payment' this winter - paid directly into bank accounts for help with rising energy bills

Chancellor John Healey says this ‘household energy payment' is costed as a £2.6bn scheme.

receive a £100 ‘household energy payment' this winter - paid directly into bank accounts for help with rising energy bills, Healey says.

This is costed as a £2.6bn scheme, Healey tells the Commons.

Healey has announced a further extension of the 5p fuel duty cut until next July due to the war in the Middle East driving high fuel prices.

The Chancellor says those who need cars for work, he's increasing the higher mileage rate from 25p to 35p per mile and making permanent the increase to the standard mileage rate.

He told MPs: “Earlier this year, the Government extended the 5p cut to fuel duty and slashed red diesel to its lowest rate in over 20 years.

“With the war in the Middle East still driving high fuel prices, I am extending these tax cuts for motorists through the winter and spring to July, supporting households, hauliers, and farmers.

“And for anyone who relies on their car for their work, from care workers to engineers, I am increasing the higher mileage rate from 25p to 35p per mile, and making permanent the increase to the standard mileage rate introduced earlier this year.”

The cut to VAT on electricity will be extended to July, taking £50 off the annual price cap, Chancellor John Healey announced.

He told the Commons: “In the first week of this new Government, we took VAT off electricity for 29 million households, today I’m extending that VAT cut through the winter and spring to July, taking £50 off the annual price cap.

“For business, our new British industrial competitiveness scheme will take 25% off electricity bills for 10,000 firms at the heart of British industry. It will go live in April, and I confirm that we will make backdated payments for energy costs this year too.”

He told the Commons: “Fiscal discipline is my first commitment as Chancellor. More than ever, it underwrites every promise this Government makes to the British people.

“In the Budget today, I meet the fiscal rules – the stability rule, the day-to-day spending must be covered by tax receipts. And the investment rule, that Government debt, defined as public sector net financial liabilities, must be falling as a percentage of GDP.

“This year, for the first time, I must meet these rules in the third year of the forecast, and I do.”

He had earlier said it was an honour to deliver his first Budget as Chancellor, as he paid tribute to his predecessor Rachel Reeves.

Ahead of today’s budget he announced that standing charges are to be scrapped from household gas bills, just hours before he delivers his first Budget.

The move comes in a bid to make the energy system fairer and give some families breathing space.

Standing charges from household gas bills will be removed for around 23 million homes.

Action from the Chancellor and Energy Secretary will make the energy system fairer and give some families breathing space.

Tens of millions of households will no longer pay standing charges on their gas bills as the Government gives families more control over what they pay.

A standing charge is a fixed daily fee added on top of a household gas bill, regardless of how much gas has been used. A household could use no gas at all but still must pay the standing charge.

The Chancellor will announce today an end to this unfair and outdated practice. He will ask Ofgem to deliver removal of these charges – which are £108 a year for the typical household on average – in 2027 or as soon as possible after.

Instead, these fixed costs will be paid on the unit rate, which could save 60% of account-holding households around an average of £45 off their annual bill.

Households not seeing an automatic saving will still have better control over their bills without the worry of affording the standing charge, and the government will set out in due course targeted mitigation for a small number of households.

This comes ahead of today’s Budget that Chancellor of the Exchequer, John Healey said would give families “breathing space for today and fresh hopes for the future.”

He added: “This Budget is designed to give households breathing space from some of the everyday costs, provide targeted support for businesses and self-employed people, and to start the long-term action needed to get energy costs down for good.

But breathing space today must go hand-in-hand with building for the future.”

Prime Minister Andy Burnham said: “Abolishing gas standing charges is about basic fairness and giving people more control over their bills.

“I am determined to reform our broken energy market, so it better serves the public interest.”

Chancellor of the Exchequer John Healey added: “Gas standing charges are unfair and outdated so I am scrapping them to give millions of households a bit of breathing space.

“My Budget will draw a line in the sand on an energy policy that has failed British billpayers for years, letting extra costs on bills pile high and leaving households even more exposed to global shocks.”

Energy Secretary Miatta Fahnbulleh said: “Too many families face unfair charges, so we're making it easier for people to take control of their energy bills.

“By removing one of the nation's bugbears - taking standing charges off gas bills, with extra support for those who need it - we'll give millions of people breathing space.

“Tackling affordability is my number one priority, and I will keep doing everything I can to protect people from unaffordable bills.”

Greg Jackson, Founder and CEO of Octopus Energy Group, said: "This represents real joined-up thinking to make a fairer, more efficient energy system, delivering what customers want - lower standing charges and further improving the ratio of electricity to gas prices. Most customers would see a cut in their gas bills which is crucial, but would also enjoy even higher savings if they can move to heat pumps when it suits them."

This follows the Government’s VAT cut on electricity bills that came into effect at the beginning of this month which is already supporting households.

It means the Energy Price Cap from October was £45 a year less than it would have been. Around a third of households on fixed tariffs are not affected by the price cap, meaning their electricity prices will have fallen when the VAT cut took effect.

While the government is giving people short term relief on their energy bills, it is also taking action to fix Britain’s energy problems for the long term.

Last week, the Government announced a new Energy Wealth Fund which will support investment in cheap, clean power.

In a video message ahead of the Budget the Chancellor of the Exchequer, John Healey said: “Breathing space for today and fresh hope for the future. That's what today's Budget will deliver.

“The world’s a highly uncertain place. Conflicts abroad are pushing up energy prices, and the cost of living here at home - piling pressure on the families, on businesses, and on our public finances.

“But Britain's economy is showing real signs of resilience: investments up, productivity is growing, and we had the joint fastest growth in the G7 in the first half of this year.

“We can't stop these shocks that hit Britain, but we can make Britain more resilient when they do.

“So, this Budget is designed to give households breathing space from some of the everyday costs, provide targeted support for businesses and self-employed people, and to start the long-term action needed to get energy costs down for good.

“But breathing space today must go hand-in-hand with building for the future.

“So, we'll back British businesses and entrepreneurs, we'll invest in the technologies that drive future growth, and we'll build more homes, shift power out of Whitehall, so that leaders locally can drive growth in every postcode.

“And in an uncertain world, we will strengthen national security and our defences, as well as our support for Ukraine.

“We'll do all of this responsibly, sticking within tight fiscal rules, and make sure every pound is well invested.

“Because this Budget is about getting through this difficult moment. But it's also about putting Britain on a future path, a better future path.

“Breathing space today, and fresh hope for the future.”