Scottish Government to pass on £100 energy payment from Budget

Summarised from 2 outlets · 3 reports · Updated 29 Oct, 00:56 · Archive

The Scottish Government will pass on the Chancellor's £100 energy bill payment announced in the Budget.

Chancellor John Healey announced a £100 one-off energy payment for approximately 20 million households in council tax bands A to D across the UK. The payments will be made directly into bank accounts from January 2027, funded by raising the bank corporation tax surcharge from 3% to 6% for 15 months.

The Scottish Government confirmed it will pass the payment on to eligible Scottish households through the Barnett formula. The Budget also removes the 4% tariff on kerosene, benefiting 142,000 Scottish households that rely on heating oil for heating. An additional £600 million in funding will go to Scottish public services over the next three years, along with £18 million for advanced chip design led by Edinburgh University and £6 million for the Scottish Event Campus in Glasgow.

Deputy First Minister Jenny Gilruth characterised the Scottish funding settlement differently, describing it as a real terms cut of £650 million next year due to inflation's impact on spending power. She said: 'The Scottish Government's budget will be cut by around £650 million next year – reducing the money we have to spend on public services and supporting people with the cost of living.' The Office for Budget Responsibility warned that living standards will stall in 2027 as conflict in the Middle East drives oil prices above $100 a barrel and inflation to 3.5%.

How it is being reported

• Healey offers 'breathing space' but OBR warns of year with no real earnings growthChancellor John Healey's Budget offers a £100 one-off payment to 20 million households and extends energy bill relief, but the OBR warns that living standards will stall in 2027 as the Iran conflict drives inflation to 3.5%The Herald · 28 Oct, 18:29
• £100 energy bill payment confirmed for Scottish households after BudgetThe Scottish Government must pass on the Chancellor’s £100 energy bill payment, the leader of Scottish Labour has said.Glasgow Times · 28 Oct, 16:52
• Budget RECAP: Scottish Government confirms £100 energy payment for ScotsChancellor John Healey has delivered his first Budget, promising “breathing space” for households alongside targeted cost-of-living fixes. Follow for full coverage and reaction.The Herald · 28 Oct, 06:20

In this story: John Healey · Scottish Government · Jenny Gilruth · Scotland · Edinburgh University · Glasgow

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