Autumn Budget 2026: 11 Questions About Your Bills, Benefits and Taxes Answered
On 28 October 2026, Chancellor John Healey announced changes to energy bills, wages, pensions, fuel duty and financial support for households.
But who will receive the £100 energy payment? Will gas bills fall? How much will wages and pensions rise? And will everyday shopping become cheaper?
Here are answers to 11 questions about what is changing, who may benefit and when. Some measures apply across the UK, while others apply only to England or Great Britain.
What Do You Need to Know?
Energy and household bills
Wages, transport and shopping
Pensions and financial support
Housing and families
1. Will I Get the £100 Energy Payment, and Do I Need to Apply?
The government has announced a one-off £100 Household Energy Payment for up to 20 million households in England, starting in January 2027.
Households in Council Tax bands A, B, C and D will qualify.
Do I Need to Apply?
If you pay Council Tax by Direct Debit and qualify, you do not need to apply. Your council will pay the £100 directly into your bank account.
If you do not pay by Direct Debit, your council will invite you to apply.
Second homes and empty properties are excluded. Most households exempt from Council Tax will be included, although the full eligibility rules have not yet been published.
Scotland, Wales and Northern Ireland will receive funding to provide similar support, but their governments will decide who qualifies and how payments are made.
2. How Do I Find Out My Council Tax Band?
You can check your Council Tax band for free on GOV.UK.
In England, homes are placed into eight bands, from A to H, based on their estimated value on 1 April 1991, not what they are worth today.
Visit the GOV.UK Council Tax band checker, enter your postcode and select your property.
If your home is in England and falls within bands A to D, it is included in the announced £100 Household Energy Payment scheme.
3. Are Gas Standing Charges Being Abolished, and Will My Energy Bills Fall?
The government wants to remove standing charges from domestic gas bills in England, Scotland and Wales by the end of 2027, or as soon as possible afterwards.
A standing charge is the fixed daily amount you pay for gas, even when you do not use any.
Under the proposed change, suppliers would add these costs to the pri ce of the gas you use instead.
The Treasury estimates that around 60% of households with gas accounts could save an average of £45 a year.
Households using less gas are more likely to benefit. Those using more gas could pay more because the price per unit may rise.
The change does not guarantee lower bills for everyone.
What About Electricity Bills?
The temporary VAT cut on household electricity bills in England, Scotland and Wales will continue until July 2027.
VAT is a tax added to bills. It was reduced from 5% to 0% in October 2026.
4. How Much Will Minimum Wages Rise, and Will I Pay More Income Tax?
Minimum wage rates will increase from 1 April 2027.
The National Living Wage is the legal minimum hourly rate for workers aged 21 and over. Younger workers and eligible apprentices receive National Minimum Wage rates.
Age group | Current rate | From April 2027 |
21 and over | £12.71 | £13.21 |
18-20 | £10.85 | £11.27 |
16-17 | £8.00 | £8.31 |
Eligible apprentices | £8.00 | £8.31 |
Someone aged 21 or over working 35 hours a week at the National Living Wage will earn an extra £17.50 a week before tax and other deductions.
The Treasury estimates that around 2.3 million workers will benefit.
The National Living Wage is a legal minimum. It is different from the voluntary Real Living Wage, which is calculated separately.
Will I Pay More Income Tax if My Wages Rise?
Possibly. The standard tax-free Personal Allowance will remain at £12,570 until April 2031.
This means that as wages rise, more of your earnings may be taxed. Some people may also move into a higher tax band.
This is known as fiscal drag. Even though the Income Tax rates on wages have not increased, a pay rise may leave you paying more tax.
Income Tax bands differ in Scotland.
5. What Is Happening to Fuel Duty and Bus Fares?
The temporary 5p-per-litre cut in fuel duty on petrol and diesel will stay in place until 1 July 2027.
Fuel duty is a tax included in the price you pay at the pump.
Keeping the cut does not mean petrol and diesel prices will stay the same. Pump prices also depend on wholesale fuel costs and retailers' prices.
What About Bus Fares?
The £2 cap on eligible single bus fares in England outside London will continue throughout 2027.
Not every bus journey is covered. London has separate fares, while Scotland, Wales and Northern Ireland have their own transport policies.
6. Will Everyday Shopping Become Cheaper?
Possibly, but lower supermarket prices are not guaranteed.
The government is temporarily removing import taxes on 101 food products, including baked beans, chocolate, dried fruit and plant-based drinks.
The changes begin on 26 November 2026 and will last until 31 December 2028.
Import taxes are charges on goods brought into the UK from abroad.
Removing them makes affected products cheaper to import. However, supermarkets and other retailers decide whether to pass those savings on to shoppers.
The Budget also removes import taxes temporarily on kerosene heating oil until December 2028 and fertiliser until December 2027.
7. How Much Will the State Pension Rise, and Will Pensioners Pay Income Tax?
The State Pension is expected to rise by 3.9% from April 2027.
The full new State Pension is expected to increase from £241.30 to approximately £250.70 a week, or around £13,036 a year.
The full basic State Pension is expected to rise from £184.90 to approximately £192.10 a week.
These are expected amounts based on published earnings and inflation figures. The Department for Work and Pensions has not yet confirmed the final weekly rates.
Not everyone receives the full State Pension. Your amount depends on your National Insurance record and entitlement.
The increase follows the Triple Lock, which means the State Pension rises each year by whichever is highest: 2.5%, inflation or earnings growth.
The government also plans to change how the Triple Lock works from April 2030.
Will Pensioners Have to Pay Income Tax?
Not necessarily.
The expected full new State Pension of around £13,036 a year will be higher than the standard £12,570 tax-free Personal Allowance.
To prevent people whose only income is the full new State Pension from having to pay Income Tax, the government has announced a new Pension Tax Allowance from 6 April 2027.
People whose total income is slightly above the full new State Pension will also receive some protection.
This protection is planned to last until April 2030.
Pensioners with additional taxable income may still have to pay Income Tax, depending on how much they receive.
8. What Is Changing for Unpaid Carers and People Receiving Benefits?
The government plans to change how earnings affect Carer's Allowance in England and Wales.
Currently, carers can lose their entire allowance if they earn even slightly more than the weekly earnings limit.
Under the proposed system, Carer's Allowance will reduce by £1 for every £1 earned above that limit, instead of stopping altogether.
The change is planned for 2030–31, so the current rules still apply.
What About Universal Credit?
The government is keeping the £2,500 surplus earnings threshold until March 2028.
This means that if you earn significantly more than usual in one month, some of those earnings may affect your Universal Credit in later months.
The £2,500 is not an extra benefit payment.
Most working-age benefits are expected to rise from April 2027 under the usual annual rules. The September 2026 inflation figure used for many benefit increases is 3.5%.
The Universal Credit standard allowance is also due to receive an additional 3.1% increase above the relevant inflation adjustment for 2027–28.
The exact amount people receive will depend on their benefit and circumstances. The final payment rates for 2027–28 have not yet been published.
9. Is There More Help With Housing and Homelessness?
The government has announced an additional £1.5 billion for the Social and Affordable Homes Programme in England.
It expects this funding to support approximately 10,000 additional homes, with priority given to Social Rent, particularly council housing.
Social Rent is generally cheaper than private renting, with rents set under government rules.
The Budget also provides an additional £432 million across 2027-28 and 2028-29 to help people sleeping rough in England find accommodation and receive support.
What About Private Renters?
Local Housing Allowance helps determine how much rent support many private renters can receive through Universal Credit or Housing Benefit.
These limits have not increased since April 2024, even though rents may have risen.
The Budget did not announce an increase for 2027-28. The final rates for that year have not yet been published.
10. What Is Changing for Parents and Childcare?
From April 2029, eligible self-employed fathers, partners and adopters in Great Britain will be able to receive parental pay for the first time.
Some parents with recent gaps or irregular patterns in employment who do not qualify for statutory paternity or adoption pay may also benefit, provided they meet the work and earnings rules.
The government estimates that more than 150,000 parents a year could benefit.
The Budget also promises up to £5 million a year for three years from 2027–28 to help preschool children access books, supporting organisations such as BookTrust and the Dolly Parton Imagination Library.
What About Childcare Costs?
The Budget did not announce a new universal childcare payment or changes to existing funded childcare entitlements.
11. When Will the Budget Changes Take Effect?
Not everything announced on 28 October 2026 starts immediately.
Date | Announced change |
26 November 2026 | New food import tax suspensions begin |
January 2027 | £100 Household Energy Payments begin in England |
1 April 2027 | Minimum wage increases take effect |
6 April 2027 | Expected State Pension increases and new Pension Tax Allowance begin |
1 July 2027 | Temporary electricity VAT relief and fuel duty reduction are scheduled to end |
By the end of 2027, or as soon as possible afterwards | Target for removing domestic gas standing charges |
April 2029 | Expanded parental pay begins |
2030–31 | Planned reform of Carer's Allowance earnings rules |
Further Reading From Clothing Collective
The Cold Reality: Clothing Poverty in Seniors. How heating costs, financial insecurity and clothing poverty affect older people.
School Blazers and the Cost of Belonging: Government Legislation to Change School Uniform Policies. The financial pressures families face when buying school uniform.
Defining Clothing Poverty: A Multi-Layered Issue. What clothing poverty means and why adequate clothing is an essential part of everyday life.
This guide explains the household measures announced in the Autumn Budget on 28 October 2026.
Clothing Collective is an independent charity and is not affiliated with HM Treasury or the UK Government.
Some changes still need to be finalised. Check official government guidance for the latest eligibility rules and payment dates.
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