Budget: £100 energy payment for millions as taxes rise for savers and landlords

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Published: November 9, 2026 at 12:12 PM

Up to 20m households in England in council tax bands A to D will receive £100 towards energy bills next year, but critics say more support is needed for struggling households.

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The Chancellor in his Autumn Budget that the money is part of the government’s plan to give households more financial “breathing space”. Funding will be provided to devolved Scottish, Welsh and Northern Irish governments for them to do the same. You can check your council tax band online using the official Council Tax band - GOV.UK for properties in England and Wales or, if you live in Scotland, via the Scottish Assessors Association website.

Gas standing charges will also be removed, with these costs instead transferred onto the gas unit rate. This change is expected to cut costs for 60% of households, with an estimated average saving of £45 a year, while 40% of households are likely to face higher costs.

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However, Paul Farmer, chief executive at Age UK said: “While Budget announcements are welcome, they do not go far enough to protect older people from the sharp rise in energy bills that is still to come, especially those who are struggling on lower incomes - some pensioners are undoubtedly going to need more financial support this winter.”

The charity claims that delivering support through council tax bandings is an “inefficient and potentially unfair way” to help households. “There are a number of older people living in higher banded properties who have a very low income, and under the current plans they will completely miss out,” said Mr Farmer. “Once we all know next just how high fuel bills are set to go this winter the Government must come forward with an adequate response.”

Savers and landlords to face higher taxes but cash ISA limit stays

Although the Budget did not raise headline income tax rates, frozen tax thresholds mean more people will be drawn into paying tax or pushed into higher tax brackets as their earnings rise.

Savers and landlords also face steeper taxes, with rates on savings interest and property income rising by four percentage points from next April. A two percentage point increase had already been announced, with a further two-point rise unveiled in the Budget. This will take the rates to 24% for basic-rate taxpayers, 44% for higher-rate taxpayers and 49% for additional-rate taxpayers on savings interest above the personal savings allowance and on taxable property income.

However, the Chancellor has scrapped plans to cut the annual cash ISA allowance for under-65s from £20,000 to £12,000, announced in last year’s Budget.

Tom Evennett, tax partner at PwC, said: “The decision to retain the £20,000 Cash ISA allowance marks a clear change of direction. Savers may be particularly grateful that the proposed £12,000 limit has dropped given the confirmed two percentage point increase in tax on savings income from April 2027, making the tax-free shelter provided by ISAs even more valuable.”

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The government’s u-turn means savers can continue to put up to £20,000 a year into cash ISAs, where interest remains tax-free.

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