Around 20 million households will be targeted for the energy payment “directly into people’s bank accounts to deal with rising energy bills,” Healey said. The scheme comes with a £2.6 billion price tag.
On the revenue-raising side, Healey has opted to target Britain’s banks. While praising their “huge contribution,” the chancellor is hiking an existing surcharge on bank profits by three percentage points, taking it to 6%. The increase will last for 15 months starting in January.
Healey has also opted to reduce his amount of fiscal headroom — the buffer between his projected tax and spending plans and the limits set by the government’s own fiscal rules.
The Office for Budget Responsibility watchdog predicts Healey’s fiscal headroom will fall to £15 billion by 2029/30. A March projection from the OBR put that figure at £24 billion.
The buffer is then projected to climb back £22 billion in 2030/31. That was broadly in line with City forecasts. “That is what a buffer is for. Use it when you need it, rebuild it when you can,” Healey argued.
The broader U.K. economic picture is mixed. GDP growth this year is now forecast at 1.2% – revised up from 1.1% at the March statement.

