Foundation Says Support Gives Poorest Half £158

The Resolution Foundation says cost-of-living support gives the poorest half of households an average £158, just £14 more than the richest half.

By Career Ahead AI · United Kingdom — AI-assisted, fact-verified against cited sources. Readers should verify key facts.

Support offers only a small gap between income groups

The poorest half of households gains an average £158 from support measures this year and next. The richest half receives £144. Ruth Curtice, chief executive of the Resolution Foundation, is identified as the organisation’s leader. The figures put the average support going to the two halves close together, despite their different positions in the income distribution.^¹²³

The Resolution Foundation says the Budget package provides support of up to £116 against a £600 rise in average energy bills in 2027. That covers about 19% of the increase. The think tank expects energy bills to average £2,210 across 2027. It describes the package as a £2.6bn Household Energy Payment, a short delay to next year’s fuel duty rises and a three-month extension of the electricity VAT cut.^¹²³

Typical energy bills net of support are forecast at £1,750 in 2026-27, above the £1,685 recorded during the 2022-23 energy price shock. Under the government’s price cap, average dual-fuel bills are £1,700 a year. Industry forecasts put average bills above £2,100 a year from January, adding to pressure on household energy budgets.^¹²³

Median real annual disposable incomes for working-age households are set to grow by £600 over the Parliament, while typical incomes are forecast to fall by £1,050, or 3%, between 2026-27 and 2028-29.

The package combines a payment with tax and bill changes

The chancellor raised taxes on banks and landlords to fund a £100 winter payment for 20 million families. The government’s biggest winter payment is a one-off £100 in January for 20 million households in council tax bands A to D. The £2.6bn Household Energy Payment goes directly into bank accounts. It sits alongside the Warm Home Discount, which offers about six million means-tested households in England, Wales and Scotland £150 off winter fuel bills.^¹²³

You may also like

Government & Policy

UK Gives Longer Graduate Visas to Some University Graduates

The Budget leaves the compliance test, labour-market criteria and number of qualifying institutions undefined.

Read More →

The Resolution Foundation’s income figures show modest gains over the Parliament alongside a near-term decline. Median real annual disposable incomes for working-age households are set to grow by £600 over the Parliament, while typical incomes are forecast to fall by £1,050, or 3%, between 2026-27 and 2028-29. Real household disposable income per person is £420 below its level two years ago and is not forecast to recover until April 2029.^¹²³

Another projection puts income growth at an average 0.6% a year over the Parliament, or £776 in total. On that measure, living standards would record the second-worst Parliament since the 1950s. Only the previous Parliament was worse, with living standards falling by 0.4% a year. These projections use different measures of income and set out why the support figures sit alongside a weak outlook for household finances.^¹²³

Energy measures change bills and offer routes to lower costs

The £76bn improvement in the UK’s primary balance between 2023-24 and 2028-29 is more than fully accounted for by £107bn of higher tax revenues. The primary balance measures the gap between receipts and non-interest spending. The Budget also included a £9bn top-up to departmental budgets over the current spending review period.^¹

Healey promised to end gas standing charges for 23 million homes in 2027 or as soon as possible after. The change could let almost two-thirds of households save an average £45 a year; standing charges typically add about £100 to annual bills. A home using 7,000 kilowatt hours of gas a year could save about £40, while one using 14,000 kWh could be £25 worse off. A household using the typical 11,500 kWh should see no change.^¹²³

A household using the typical 11,500 kWh should see no change.¹²³

The government removed the 5% VAT levy on electricity bills for 29 million households, saving about £45 a year, and Healey promised to keep VAT off bills until July, extending annual savings to £50. Cuts to electricity levies over the past year have reduced costs by about £150 a year. Electricity standing charges add about £200 to the average bill. Nesta said removing the subsidy scheme for the UK’s oldest renewable energy projects would lower electricity costs by £42 a year; Healey also scrapped a planned hydrogen levy that would have added £2.60 to £4.50.^¹²³

Loans and grants support household energy upgrades

You may also like

Government & Policy

Labour MPs Warn Against Overruling Fahnbulleh on Rosebank

Her aides say no decision has been made, and a final Rosebank decision is expected before the end of this year.

Read More →

The government says households could save up to £550 a year on energy bills by investing in solar panels, home batteries and a heat pump. A time-of-use tariff could add a further £300 in annual savings. These savings depend on household investment and the tariff used; they are separate from the direct payment and bill changes in the package.^¹²³

Warm Home Loans launched on Tuesday and offers government-backed loans of up to £35,000 for low-carbon energy alternatives. The boiler upgrade scheme provides grants of up to £7,500 towards the £13,600 cost of installing a heat pump. Households that are not connected to the gas grid and rely on high-cost heating oil can access grants of up to £9,000 a year.^³

Martin Lewis, founder of MoneySavingExpert.com, said households could face a 25% cost increase from January. That warning sits alongside the industry forecast of dual-fuel bills above £2,100 a year from the same month. The package’s direct payment, bill reductions and upgrade support therefore address different costs and reach households through different routes.^¹²³

Energy Bills Rewrite Household Budgets

Your household energy budget needs a bigger buffer than the headline support suggests. The poorest half gains £158, but typical net bills of £1,750 exceed the £1,685 seen in the 2022-23 shock, and industry forecasts put dual-fuel bills above £2,100 from January. Plan for a 25% cost increase, not the £116 support figure, which covers only 19% of the £600 rise in 2027.^¹²³

If you are weighing a career in energy or home upgrades, the policy direction is clear: grants and loans for heat pumps, solar, and batteries now reach up to £35,000, with potential savings of £550 a year plus £300 more on time-of-use tariffs.

If you are weighing a career in energy or home upgrades, the policy direction is clear: grants and loans for heat pumps, solar, and batteries now reach up to £35,000, with potential savings of £550 a year plus £300 more on time-of-use tariffs. For households, the standing charge changes create a split: heavy gas users (14,000 kWh) lose £25, while lighter users save £40. Factor these shifts into any role or investment decision.^³

Written by Career Ahead AI. AI can make mistakes, so verify key facts. Report errors to support@careeraheadonline.com

You may also like

Government & Policy

Healey Announces £380m as Burnham’s Pledges Remain

Lewis’s email advises ten million British subscribers; Burnham’s pledges include changes to public transport and post.

Read More →