Thousands of families in Portsmouth will receive a £100 payment towards their energy costs as Labour launches a new drive to bring down bills, back British industry and ensure households benefit from the transition to clean power.
The Budget will provide immediate help with household energy costs while beginning longer-term reforms to make Britain’s energy system work better for consumers and businesses.
Around 80% of households in England in council tax bands A-D will receive a £100 Household Energy Payment directly into their bank accounts from January, supported by £2.6 billion of funding. The devolved nations will receive funding through the Barnett formula.
The Government will also extend the VAT cut on electricity until July 2027, abolish standing charges on gas bills, and examine electricity standing charges next year.
Labour Ministers will also act to stop government policy continually adding new costs to household bills. A new cost-control framework will be introduced at the Spending Review, while the hydrogen levy will be scrapped and funded directly by the Exchequer instead.
The measures signal a shift towards putting affordable energy at the heart of the Government’s economic strategy, using cheaper electricity not just to ease the pressure on household finances but to make British industry more competitive and help reindustrialise the country.
To support the package, the Government will temporarily increase the Bank Corporation Tax Surcharge from 3% to 6% from January 2027 until March 2028.
The reforms will form the starting point for the Government’s forthcoming 10 Year Plan, setting out a longer-term pathway towards cheaper energy for families and businesses.
Stephen Morgan, MP for Portsmouth South, said:
“I welcome this week’s Budget delivering for Portsmouth’s families and local businesses by giving some breathing space from rising costs.
“Thousands of families in our community will receive a £100 payment towards their energy costs this winter. I will continue to prioritise tackling the cost of living issues Portsmouth people face as a priority in Parliament”.
Chancellor of the Exchequer, John Healey, added:
“Our Labour Government’s priority is, first and foremost, cheaper energy – with clean power the key to achieving it.
“This is possible because of the progress we have made towards clean power over the last two years, and this Government remains unshakeably committed to net zero by 2050.”
