Budget Day: Chancellor Healey to Ask Ofgem to Abolish Gas Standing Charges for 23 Million Homes as Bank Levy and Energy Support Measures Loom

Chancellor John Healey is delivering the UK government's first Budget on 28 October 2026, with several energy and financial measures expected alongside the headline fiscal statement. On energy, Healey has said he will ask Ofgem, the energy sector regulator, to remove the standing charge (a fixed daily fee levied regardless of consumption) on household gas bills, describing it as 'unfair and outdated'. The measure is expected to affect around 23 million homes, with implementation targeted for 2027 or shortly after. Separately, targeted support for households on certain benefits is expected in response to a forecast rise in energy bills, with a typical annual bill projected to jump by approximately £276 in January. On banking, UK banks have been briefed to expect a levy or surcharge increase. The Treasury's options include raising a 3% surcharge on bank profits, which was previously reduced from 8% under the prior government, or increasing the bank levy based on balance sheet size. Bank bosses have told the BBC they expect a tax increase on the sector. The Office for Budget Responsibility (OBR) will publish its economic assessment alongside the statement. Prior to the Budget, the UK sold £4.5 billion of five-year gilts (UK government bonds) paying an average yield of 5.036%, the highest since 2008, reflecting market pressure on public finances ahead of the statement. The fiscal headroom, the gap between projected revenues and the government's self-imposed spending rules, is estimated at between £12 billion and £20 billion depending on the forecaster.