UK budget announces £100 energy payment and temporary bank-tax increase

The facts

1. The household payment covers eligible main homes in council-tax bands A–D. The government plans £100 million in discretionary help for other struggling households. Scotland, Wales and Northern Ireland receive additional funding for their own support. ^[2]

2. The bank corporation-tax surcharge is to rise from 3% to 6% from 1 January 2027 through 31 March 2028, a 15-month increase. ^[1]

3. The budget extends electricity VAT relief until July 2027 and asks Ofgem to remove gas standing charges as early as 2027. The energy department says those standing-charge costs would move to unit prices. ^[1][2]

4. The budget’s OBR forecast gives GDP growth of 1.2% in 2026 and 1.0% in 2027. These are forecasts, not observed annual outcomes. ^[1][3]

5. The Ukraine package includes £7 billion in economic support over three years, including up to £5.5 billion in World Bank loan guarantees and £1.5 billion in development funding; £3 billion of extra UK Export Finance credit capacity; and £500 million for air defence this winter. These combine guarantees, credit capacity and funding rather than a single cash grant. ^[1]

6. The Treasury says the package is additional to its existing commitment of £3 billion a year in military support through 2030–31 or for as long as needed. AP corroborated the announcement of additional economic and military support. ^[1][3]