LISTEN - Budget 2026: What it means for your money as millions of households offered help with bills, wages and everyday costs

Millions of households across Sussex, Hampshire and the rest of Britain are set to benefit from measures announced in the Chancellor's Budget, including £100 towards energy costs, higher wages, cheaper bus fares and continued relief for motorists.

Five things you should know about Budget 2026

Here are five key announcements from Chancellor John Healey's Budget and what they could mean for your money.

1. £100 towards your energy bills – Households in England living in council tax bands A to D are set to receive £100 in support from January 2027.

2. Higher minimum wages – The National Living Wage will increase to £13.21 an hour from April 2027, giving a full-time worker on the rate around £910 more annually before tax.

3. Help for motorists – The 5p-per-litre fuel duty cut will continue until July 2027. Tax-free mileage rates for eligible work journeys are also increasing.

4. Cheaper bus travel – Single bus fares in England outside London will be capped at £2 for a year from January 2027, on eligible services.

5. Changes to energy bills – The removal of VAT on domestic electricity will continue until July 2027. Gas standing charges are also set to be abolished, although their costs will move into the price charged per unit of gas.

Listen to V2 Radio's News Editor Philip Keeler as he breaks down the Budget announcement.

Chancellor John Healey delivers his first Budget

Chancellor John Healey delivered his first Budget on Wednesday 28 October, promising to give working families and businesses some breathing space as the country faces rising costs linked to conflicts in Ukraine and the Middle East.

But what will the announcements actually mean for ordinary people and how much money could they save?

One of the biggest announcements is a £100 Household Energy Payment, which will be made to households in England living in properties within council tax bands A to D.

The payment, expected to benefit up to 20 million households, will be made from January 2027 through the council tax system, with the government saying the money will go directly into bank accounts.

The Chancellor has also extended the removal of VAT on domestic electricity bills until July 2027.

The measure, which originally came into effect on 1 October 2026, is expected to reduce the annual Ofgem energy price cap by approximately £50 in April next year, compared with what it would otherwise have been.

Further changes are planned for gas bills, with the government announcing the abolition of standing charges from 2027 or as soon as possible afterwards.

Currently, households pay an average of £108 annually in gas standing charges, regardless of how much gas they actually use.

However, these fixed costs will instead be incorporated into unit prices, meaning not every household will necessarily save money. The government estimates around 60% of gas account holders could save an average of £45 a year.

There is also some relief for motorists.

The temporary 5p-per-litre reduction in fuel duty, which had been due to end in January, will remain in place until 1 July 2027.

The planned inflation-linked increase in fuel duty has also been postponed until that date.

For people who use their own vehicles for work, tax-free mileage rates are being increased.

The rate for the first 10,000 business miles will be permanently set at 55p per mile, while the rate above that threshold will rise from 25p to 35p from April 2027.

The Treasury estimates someone driving 6,000 business miles annually could benefit from an additional £120 in tax savings.

Public transport passengers will also benefit, with single bus fares in England outside London capped at £2 for a year from 1 January 2027.

Millions of low-paid workers are set to receive a pay rise from April next year.

The National Living Wage will increase by 3.9% to £13.21 an hour, equivalent to approximately £910 more a year before tax for someone working full-time on the minimum rate.

For workers aged 18 to 20, the minimum wage will rise to £11.27 an hour, while those aged 16 and 17, along with eligible apprentices, will receive £8.31 an hour.

Pensioners are also receiving additional protection.

A new Pension Tax Allowance will be introduced from April 2027, designed to prevent people whose total income is no more than the full new State Pension from facing income tax bills simply because their pension has increased.

The government has also announced temporary tariff reductions on more than 100 food and drink products, potentially reducing import costs and helping supermarkets keep prices down.

However, lower import tariffs do not guarantee that retailers will pass the full savings on to customers.

Families are also set to benefit from longer-term changes to parental pay.

From April 2029, eligible self-employed fathers, partners and adopters will be able to access financial support that is currently unavailable to them.

The Treasury estimates the changes could help more than 150,000 parents each year.

Small businesses and high streets are another focus of the Budget.

The threshold for Small Business Rate Relief is being increased, with the government estimating that an additional 70,000 retail, hospitality and leisure businesses will pay no business rates.

Pubs, music venues and social clubs will receive further business rate reductions, while other eligible retail, hospitality and leisure properties will see rates frozen in real terms for two years.

The government hopes these measures will support local businesses, safeguard jobs and help keep town centres thriving.

There will also be an additional £100 million for local authorities in England to support households particularly affected by higher energy prices, including some living in properties outside council tax bands A to D.

Despite the assistance, the Budget comes against a difficult economic backdrop.

The Treasury says consumer prices are now around 33% higher than their 2020 average, while household energy costs have risen by approximately 73% over the same period.

The Office for Budget Responsibility expects inflation to peak at 3.8% in early 2027, meaning families are likely to continue facing pressure from everyday living costs.

The government argues its package will provide immediate financial support while laying the foundations for lower energy costs and stronger economic growth.

For ordinary households, the most immediate benefits will be the planned £100 energy payment, extended electricity VAT relief and continued fuel duty reduction.

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