Autumn Budget 2026: Key Energy and Housing Announcements

On Wednesday 28th October, Chancellor John Healey delivered his first Autumn Budget, announcing the Government’s latest plans for tax, public spending and the UK economy.

As a small business that works closely with residents and housing providers, we want to understand how this year’s announcements will affect the energy and housing sectors.

As we provide free home energy visits, we see first-hand just how much rising energy costs are affecting people in our community. With winter well on the way, we know many households are already worrying about how they’ll afford to heat their homes. That’s why we want to see more support for anyone struggling with their energy bills, especially those who are most vulnerable. We also want to see more investment in energy efficiency to help make homes warmer, greener and cheaper to run.

In fact, two years ago, our Director Sarah appeared on BBC Two’s Politics Live, highlighting the growing fuel poverty crisis and the urgent need for action. Two years on, our message remains the same: the Government needs to do more to support people struggling with their energy bills, including those who don’t qualify for existing support schemes.

What Actually Is the Autumn Budget, And Why Does It Matter?

In short, it’s the government’s financial plan for the year ahead. The budget explains how they’ll spend the nation’s finances and make any changes to taxation. This is necessary as most of the government’s income comes from taxes paid by people and businesses, which fund services like hospitals, schools, the military, and police.

£100 Energy Payment for Millions of Households

Around 20 million households in England living in council tax bands A to D will receive a £100 payment straight into their bank accounts from January 2027. This is to help with rising energy costs. If you don’t pay by direct debit, your council will invite you to apply for the payment directly.

Electricity VAT Cut Extended to July 2027

The Government has extended the temporary VAT cut on electricity bills until July 2027. This could save a typical household around £50 a year from April 2027. It was originally in place until the end of March 2027.

Gas Standing Charges to Be Scrapped

From 2027 (exact date to come), households will no longer need to pay a daily standing charge for gas. The Government also plans to review electricity standing charges, with more details expected next year.

However, these costs still need to be paid, so they’ll be added to the price of the gas you use instead. This means how much you pay will depend on how much gas you use.

More Help for Households in Energy Debt

A new scheme called the Energy Debt Circuit Breaker will offer one-off debt relief to eligible households struggling with unpaid energy bills. The Government hopes this will also help reduce costs for all billpayers.

Funding Cuts to the Warm Homes Plan

The Government has announced cuts of around £1 billion to funding that helps make homes more energy efficient. This includes £720 million less for the Boiler Upgrade Scheme, which helps households install greener heating systems like heat pumps, as well as cuts to other home improvement schemes.

Plans to Make Energy Cheaper in the Long Term

The Government wants to change how the energy system works to help bring bills down. This includes looking at cheaper ways to produce electricity and reducing the impact of gas prices on electricity bills.

Planned Gas Levy Scrapped

A planned extra charge on gas bills has been cancelled. Instead of households paying towards hydrogen projects through their bills, the Government will cover these costs.

Cheaper Electricity for Manufacturing Businesses

Around 10,000 manufacturing businesses that use large amounts of electricity could receive a 20-25% discount on their bills from April 2027, helping them manage rising costs.

More Funding for Social and Affordable Housing

The Government has announced an extra £1.5 billion to help build around 10,000 new homes in England, with priority given to social housing, particularly council homes. This brings total funding for the Social and Affordable Homes Programme to over £40 billion across 10 years.

The Government is also introducing measures to help councils and housing providers build new homes more easily and at a lower cost. From the 1st of April 2027, registered social landlords, such as housing associations, will pay 0% VAT when buying land.

New Standards for Supported Housing

A new licensing scheme in 2027-28 will help make sure supported housing in England meets national standards. This aims to improve the quality of accommodation and support available to vulnerable residents.

Cheaper Loans for Councils Building Homes

The Government is extending a scheme that allows councils to borrow money at lower interest rates for another year, helping them build more council homes at a lower cost.

Planning Changes to Help Build More Homes

The Government plans to make the planning process easier by introducing digital tools for councils and reducing certain requirements for smaller developments on previously developed land. This could help speed up the building of new homes.

More Support to Tackle Rough Sleeping

An additional £432 million has been announced to help tackle rough sleeping in England over 2027-28 and 2028-29, extending support beyond this Christmas. This funding will help more people sleeping rough find somewhere safe to stay and get the support they need to move into longer-term housing.

How Green Energy Switch Can Help

This year’s Budget does bring some welcome support, but we do still want to see more action on making energy more affordable and helping everyone live in a warm and safe home.

At Green Energy Switch, we’re committed to doing our bit. From providing free home energy visits to help residents save money on their bills, to supporting housing providers with our Void Energy Management and EPC services, we’re here to make managing energy easier, more affordable and more sustainable.