Contact responds to Autumn Budget 2026
2 mins read
Wednesday 28 October 2026
Chancellor John Healey has announced a new £100 energy payment for all council tax properties in bands A-D in England.
This “household energy payment” will be made directly into the council tax-payers bank account. Healey also confirmed that the existing VAT cut in electricity bills will be extended.
Healey made these announcements in today’s Autumn Budget, following a pledge earlier this week to taper the Carer’s Allowance earnings limit.
The Chancellor also confirmed that:
- Both Milburn and Timms reviews will report next month.
- The government will publish their response before the end of the year.
- A White paper will follow in the New Year.
We will continue to provide details about benefit implications as we explore the budget’s details fully.
Derek Sinclair, our senior benefits adviser, said:
“Contact welcomes the reiteration in the Chancellor’s budget that the Carer’s Allowance earnings limit will be tapered. This is a change we have long campaigned for on behalf of parent carers. But as those receiving Universal Credit will still have their Carer’s Allowance deducted pound-for-pound, and implementation is not expected until 2030, further improvements to carers benefits are badly needed.
“Families we support will also welcome the Chancellor’s steps today to reduce household energy costs. This includes the planned removal of gas standing charges and energy payments for some people in particular council tax bands. However, families with disabled children face unavoidable extra energy costs that a general bill reduction may not adequately address.
“That’s why we will continue to call for a targeted energy social tariff alongside urgent action to unlock disabled young people’s savings, and the protection for of vital disability benefits so that the support families get reflects the real costs of caring for a disabled child.”