The Chancellor has delivered a Budget promising “breathing space” for households, announcing measures he says are set to cut energy bills “for good”.
Here we take a look at the key measures intended to help homes manage the rising cost of energy.
John Healey unveiled a new household bill payment for millions of households as he shared his Budget on Wednesday.
Healey said the conflict in the Middle East has driven up energy bills and he recognised this was a “real worry” for households.
How you could get right to see what your colleagues earn
Workers could soon have the legal right to know details of their colleagues’ salaries and bonuses under proposals from the UK equality watchdog.
What you need to know
- The Equality and Human Rights Commission (EHRC) said employers should be forced to respond to questionnaires from their employees seeking information about pay if they suspect a colleague is being paid more.
- Employees could request their colleague’s basic salary, working hours, overtime and any bonuses.
- The EHCR recommended it be a legal requirement for employers to answer their workers’ query within a specified timeframe.
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Why you could expect more questionnaires at work
- The EHRC’s recommendation came as part of its response to a Government consultation on plans to overhaul equal pay legislation.
- The Government wants to reintroduce statutory questionnaires to help workers resolve disputes and work out whether they have been paid unfairly, without having to resort to lengthy and costly legal proceedings.
- Such questionnaires were previously available under the Equality Act 2010, before being abolished in 2014.
Could this lead to fairer pay?
The EHRC argued that specific pay information needed to determine whether pay discrimination has taken place is in the sole control of the employer. Disclosure through a questionnaire procedure could support early resolution of any disputes
The gender pay gap among full-time employees was 6.8 per cent in April, according to the Office for National Statistics.
Dense fog to cause chaos this week – tips for safe driving
Calmer weather may be on the way after a weekend of brutal storms, but many Britons will still have to contend with dense and stubborn fog.
What to expect
The Met Office has warned that heavy fog conditions will set in later this week.
- Some parts of the south and central parts of the UK could wake up on Thursday to some fairly dense fog patches.
- “They will be quite slow to clear,” the Met Office said.
- “We’re entering that time of year where fog can be quite stubborn to move once it’s formed.”
- After three people were killed as a result of storms over the weekend, the Met Office warned that the main risk of any disruption over the next five days would be from “dense fog patches rather than wind and rain”.
The forecast
With calmer weather, winds will be lighter, causing more mist and fog to form, especially overnight and lingering through the mornings. In some places, fog may not clear at all and make it feel quite chilly.
Much needed rain will also be in short supply. October saw an average amount of rainfall after a summer of drought. Yet some reservoirs are still exceptionally low.
Ahead of the weather, the AA has reissued advice to drivers likely to be affected by fog this week.
The AA’s advice to drivers in fog
- Use dipped headlights, wipers and demisters.
- Use fog lights when you need to, but remember to switch them off once visibility improves.
- Beware of other drivers not using headlights.
- Only drive as fast as conditions allow.
- Slow down so you can stop in the distance you can see clearly.
- Allow three seconds instead of two between you and the car in front.
- Check your mirrors before you slow down.
- Open your window to listen for traffic at junctions if you can’t see.
Tommy Robinson found guilty of harassing two journalists
Far-right activist Tommy Robinson has been convicted of harassing two journalists and causing them to fear violence.
The 43-year-old, whose real name is Stephen Yaxley-Lennon, was labelled a “bully” by prosecutors after freelance reporter Andrew Young and editor Jacob Dirnhuber felt forced to either leave their homes or employ extra security for fear of a “vigilante” attack.
What you need to know
Jurors at Southwark Crown Court found Robinson guilty of both charges of harassment causing fear of violence.
His trial heard how the anti-migrant activist “retaliated” after the and published a story about him “stoking riots from his sunbed” during unrest in the UK in August 2024 following the murders of three girls in Southport.
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The back story
- Robinson made a series of posts
about the unfolding situation while
on holiday in Cyprus, prompting the newspaper to send Young and a photographer to the island. - After the published its story, Robinson posted criticisms of Young and Dirnhuber on his X account.
A quick guide to this year’s Budget
This is a Budget for the working people.
Chancellor John Healey today unveiled the long-anticipated Budget, the first for Prime Minister Andy Burnham. Healey called it a Budget “for the working people” as he announced details.
So what are the key takeaways?
Cheaper energy
- This winter, 20 million households in council tax bands A to D will receive a £100 energy payment paid directly into people’s bank accounts – a £2.6bn scheme.
- Gas standing charges will be removed from next year, and similar reforms will follow for electricity.
- The Chancellor says he will remove some levies on energy bills.
- He also extended a VAT cut on electricity to July 2027, cutting £50 off the annual price cap.
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Savings and pensions
- The tax-free limit on cash ISAs will stay at £20,000, abandoning plans to reduce it to £12,000.
- “To make the investment more accessible, I will work with the sector to create a new starter ISA to reward first-time investors,” Healey said.
A new pension tax allowance will be introduced. “Pensioners with income up to the value of the full new state pension will not pay income tax in this parliament,” Healey said.
Benefits and paternity leave
- A benefits rule that punished unpaid carers for earning too much is being abolished. Now, if they earn any amount above the threshold set by means-testing (£204 a week), they lose the whole carer’s allowance.
- This will be replaced, Healey announced.
- Self-employed dads and same-sex partners will also be eligible for two weeks’ support worth up to £194 a week.
3.9%
The Chancellor announced a rise in the minimum wage by nearly 3.9 per cent, the same rate for workers aged 18 to 20 years old and those aged 21 and over.
The Chancellor promises to reform non-compete clauses in contracts.
- Healey also said he will extend the fuel duty cut until July 2027.
- Workers using their car to get to work can be reimbursed a greater amount by their employers tax-free – the higher mileage rate will increase from 25p to 35p per mile.
The threshold for small business rate relief will increase from £12,000 to £18,000 for retail, hospitality and leisure.
Healey will also raise taxes on the gambling industry to pay for the changes. A £10m alcohol duty relief will be provided for around 2,000 small British brewers and cider makers.
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The two reasons Man Utd have given Carrick shock second chance
Michael Carrick will remain in charge of Manchester United for their weekend trip to Chelsea, despite overseeing the club’s worst start to a top-flight season in 40 years.
Carrick is ‘preparing team to face Chelsea’
The i Paper has been told that despite several alternatives being explored, Carrick was at United’s Carrington base taking training on Tuesday and is “preparing the team to face Chelsea on Saturday”.
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A closer look at the detail
Club sources insisted that “Michael and the players will have the opportunity to turn the situation around”, with everyone focused on “showing our response on the pitch”.
Carrick was expected to be relieved of his duties on Monday, with Eddie Howe the frontrunner to take charge. However, after senior executives held a crisis meeting on Monday, Carrick will get a surprise reprieve.
What happened on Monday?
- With the squad on a day off, Carrick was not expected to be at Carrington, as senior figures were sharpening their axe. Instead, there was no white smoke from the boardroom.
- Rumours circled that United were waiting for the afternoon and the New York Stock Exchange to open before making an announcement, but club sources insisted no news would be coming out of the club.
Why has Carrick got another chance?
- Insiders told The i Paper that chief executive Omar Berrada and director of football Jason Wilcox could not make a call on sacking Carrick yet until they believe a suitable successor is lined up.
- Dismissing Carrick will cost the club a considerable amount, so they must be certain the next coach is fully interested.
- One source has claimed that there is a feeling the club needs to stop the cycle of sacking managers.
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Why Neil Young is suing Trump campaign for the second time
The Canadian-American singer has filed a $10m (£7.5m) lawsuit against a fundraising committee that supports Donald Trump, citing “unauthorised” use of his music.
What does Young claim?
Young, 80, alleges that the Trump 47 Committee infringed on his copyright when it used his hit song Rockin’ in the Free World before Trump took to the stage at a rally in Ohio on 12 October.
The lawsuit claims the use of the song amounts to an “unauthorised public performance”, and that Young “has not, and would not, grant the required licence”.
A closer look at the lawsuit
The lawsuit said Rockin’ the Free World is “a blistering anthem that contrasts the hollow promises of American political rhetoric with the harsh realities faced by the poor, homeless and forgotten”.
- Young says that the song is “the opposite of everything that Donald J Trump stands for”.
“We have all been here before,” to quote by Young’s former supergroup Crosby, Stills, Nash and Young.
This is the second time Young has sued Trump over use of the song. The singer filed a lawsuit in 2020, which was later settled.
Young’s lawsuit says Trump’s use of the song again breaks the terms of the prior settlement. The new $10m lawsuit also asks for an injunction against further public performance for political purposes.
The Trump administration has not yet responded to the suit.
The Rolling Stones, REM, Rihanna, Adele, and the estate of Prince have all previously criticised the president for using their music at his campaign events.
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Why Bolsonaro has fled to the US after Brazilian election
Brazilian senator and opposition candidate Flávio Bolsonaro has left the country for the United States after losing Sunday’s presidential election.
The US State Department is expected to grant him and his family entry visas.
What you need to know
Bolsonaro is yet to concede to the current President and leftist candidate Luiz Inácio Lula da Silva.
The losing right-wing candidate left Brazil amid a probe into alleged money laundering, wrongdoing he has denied. He refused to comply with a supreme court order to surrender his passports.
Bolsonaro is the eldest son of former President Jair Bolsonaro, who is currently under house arrest as part of his 27-year sentence for attempting a coup after losing the 2022 election to Lula.
US via Argentina and Ecuador
Argentina’s migration department said on Wednesday that Bolsonaro and his family had briefly entered the country’s Misiones province on Tuesday night through a road crossing, with valid travel documents
They then boarded a private plane bound for Guayaquil, Ecuador. The current location of Bolsonaro, his wife and two daughters was not immediately clear.
Donald Trump and Argentina’s President Javier Milei have been vocal allies of the Bolsonaro family.
Tense relations
- Bolsonaro’s departure threatens to deepen a rift between Brazil and the US – the two most populous nations in the Americas.
- Lula has accused Washington of colluding with the Bolsonaros to put them back in power.
- Trump told reporters on Wednesday that he would approve of Bolsonaro coming to the US.
- The US President on Monday said the Brazilian vote “looked like another rigged election”.
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Like father, like son?
Trump has previously alleged that Jair was a victim of judicial persecution in Brazil.
- The elder Bolsonaro also went to the US after refusing to concede to Lula in 2022, when then US president Joe Biden was in office.
- Lula, speaking in Brasilia, said he had just heard that Flavio had left the country, and called it shameful, saying he should have stayed in Brazil and proved his innocence.
- Bolsonaro had been favored to win Sunday’s presidential election but ended up losing in a shock result.
- Eduardo Bolsonaro, Flavio’s younger brother who lives in the US, said ahead of the vote that an election loss would require a move out of the country.
The election in pictures
Everything we know so far about fatal train crash in Spain
At least 64 people have been killed and 80 injured after two trains collided in Spain this morning, it has been reported.
The trains collided between the towns of Los Yebenes and Urda, in the Toledo province in central Spain. Rail operator, Adif, said the entire line from Madrid to the southern Andalusia region has now been suspended.
What do we know so far?
- The crash involved a high-speed AVE train that had left Madrid bound for Seville and an Iryo train travelling in the opposite direction.
- The Iryo train was reportedly carrying 147 people, while the AVE train was carrying 397.
- The crash comes nine months after Spain’s worst rail disaster in more than a decade.
- In January, two high-speed trains collided near Adamuz in Córdoba, killing more than 40 people.
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[I am] shocked by the serious train accident in Toledo…I remain in constant contact with the Minister of Transport, and with the president of Castilla-La Mancha. My affection, solidarity, and support to all the victims and their families.
Pedro Sánchez
The story in pictures
“This winter, for 20 million households in council tax bands A to D, I’m announcing a £100 energy payment for households paid directly into people’s bank accounts to deal with rising energy bills. That’s a £2.6bn scheme to take the pressure off in the coldest months and see people through to the spring,” he said.
The Chancellor had been expected to increase the Warm Home Discount, a one-off electricity bills discount for those in receipt of qualifying benefits, by up to £100 but this was not mentioned in the Budget.
Who will actually save money?
Around 20 million households – roughly 70 per cent of all residential properties – containing around 45 to 50 million individuals are in council tax bands A to D.
Becky Lane, CEO of home energy renovation company Furbnow, said there had been a risk that households just above the eligibility threshold, who are also struggling with rising bills, would get left behind with a Warm Home Discount rise.
However, she added: “The Government needs to look beyond short-term discounts and help households make their homes cheaper to run permanently. Better insulation and more efficient heating can save families hundreds of pounds every year, rather than leaving them dependent on another round of bill support next winter.”
Green levies removed from energy bills
The Chancellor announced green levies will be scrapped to cut energy bills.
Healey outlined plans in his Budget to axe green levies from household energy bills and put the costs into general taxation.
Levies currently make up to 18 per cent of electricity bills and seven per cent of gas bills.
Nigel Pocklington, CEO of Good Energy, welcomed the decision to move policy costs off energy bills and into general taxation.
However, he said: “Targeted support for households will give families some much-needed breathing space as they head into another difficult and expensive winter.”
He added that he would like to see the Government “grasp the nettle and commit to finally breaking the link between gas and electricity which is keeping energy prices in the UK the highest in Europe and stagnating growth”.
Who will actually save money?
The average household currently pays about £1,723 a year in energy bills – roughly half for gas and half for power. In total, green levies add about £180 to the average combined energy bill.
However, Lane said households will still be paying the levy through taxation.
She said: “Moving green levies into general taxation might make energy bills look cheaper, but it doesn’t make the underlying costs disappear. Households will still be paying for them, just through a different route.
“The bigger question is whether the Government is doing enough to help families use less energy in the first place.”
Cutting standing charges
Standing charges on gas bills will be scrapped from 2027, Healey has confirmed.
The charges, a fixed daily fee applied simply for the facility of having gas which are not based on how much gas is used, cost a typical household £108 per year.
Martin Lewis, founder of Money Saving Expert, said he was very pleased to hear that standing charges will be cut.
Speaking outside No 11 on Wednesday morning, Lewis said he estimates that shifting the cost to unit rates would translate to “just under 1p per kwH”.
Who will actually save money?
Lewis said the changes are likely to favour smaller households, which generally use less gas over larger households or people who rely on using more gas such as the elderly or the disabled.
He said: “In practice what this means is lower users will pay less, higher users will pay more. But because of the maths, there are some very high users, actually about 60 per cent of people will pay less, 40 per cent will pay more.
“In every income distribution class up to £100,000, the majority of people will pay less. Only above that will some pay more.”
Tony Jordan, energy analyst at Price Intelligence, noted not everyone will benefit from this measure as it only applies to standing charges for gas – which around 70 per cent of UK households are connected to via the grid – not for electricity.
“Some people that use a lot of gas, obviously their gas bills are going to go up quite a bit, potentially, compared to those that [don’t use] a lot where their gas bills will come down,” Jordan said.
He suggested the switch means in effect households that are more vulnerable to the cost of living, such as single people living in small flats, will reap the benefits.
Simon Francis, coordinator of the End Fuel Poverty Coalition, said: “Removing the gas standing charge will bring real relief to many low-income households who use very little energy and for prepayment customers it could stop debt building up in the summer months.”
Healey announced an extension to the VAT cut on household electricity bills until July.
“I’m extending that VAT cut through the winter and spring to July, taking £50 off the annual price cap,” he told the Commons.
It comes after the Government previously removed the 5 per cent VAT from electricity bills until March 31 next year to cut around £45 a year.
Households are still paying 5 per cent VAT for gas.
Who will actually save money?
Around 29 million domestic electricity customers in England, Scotland and Wales will qualify without needing to take any action.
However, it comes as the energy price cap, set by regulator Ofgem, was raised by £60 a year earlier this month.