John Healey is reported to be preparing a major package in this month’s budget to help lower‑income households with energy costs, including boosting benefit discounts, amid forecasts of big bill rises in January.
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Published 11 Oct 2026
Chancellor John Healey is preparing a major intervention in this month’s budget to reduce energy costs for poorer households, the Guardian reports. Officials are said to be working on plans worth more than £1bn, with most of the proposed spending likely to increase discounts available to people claiming certain benefits.
The move comes after ministers were reportedly alarmed by forecasts suggesting household energy bills could rise by hundreds of pounds in January. According to the Guardian, officials are also exploring further, more radical changes that could alter how much energy companies are permitted to charge customers.
Details remain limited in the report. The bulk of the sum — described as more than £1bn — is expected to be used to raise the level of discount available to households receiving particular benefits. The Guardian says officials are also considering measures that would affect energy company pricing frameworks, though specific regulatory changes or the scale of any cap adjustments were not published.
No formal announcement had been made at the time of the report and the Treasury has not been quoted with confirmation in the article. The proposals are framed as part of the chancellor’s budget plans due this month.
The Guardian reports ministers’ concern stems from official forecasts showing a substantial increase in energy bills in January, with rises described as running into the hundreds of pounds for some households. That prospect reportedly prompted urgent work on interventions aimed at preventing a sharp fall in living standards among lower‑income families over the winter.
By focusing support on benefit recipients, the proposed package would target households judged to be among the most vulnerable to price shocks. The report suggests the chancellor and officials are weighing the balance between direct financial help and regulatory steps affecting how suppliers set prices.
If the measures reported by the Guardian are included in the budget, they would represent a significant government spending commitment focused on energy affordability. Increasing discounts for benefit claimants would provide targeted short‑term relief, while any regulatory changes to supplier pricing could have longer‑term implications for the energy market and consumers’ bills.
At this stage the details published are preliminary and based on government planning work rather than confirmed policy. The chancellor’s final budget proposals and any accompanying regulatory announcements will determine the size, shape and reach of support for households facing higher energy costs in the coming months.
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