Martin Lewis reacts to Budget with energy support and tax freeze

Summarised from 3 outlets · 5 reports · Updated 29 Oct, 07:21 · Archive

Chancellor John Healey announced £100 energy bill support for 20 million households and scrapping of gas standing charges, but income tax thresholds will remain frozen until 2031.

Chancellor John Healey announced his first Autumn Budget, laying out plans to give families 'breathing space' amid what he described as a global economic storm. The UK is being battered by increased borrowing costs, with Britain spending £14 billion more on debt interest this year, Mr Healey told MPs.

One of the key announcements was £100 in energy bill support for around 20 million households this winter, alongside tax breaks for high street firms. The government also announced it would scrap the gas standing charge, a move widely welcomed. Money expert Martin Lewis said this would benefit lower-income households, as those using less gas would pay less.

The Office for Budget Responsibility slashed its forecast for gross domestic product growth next year, reflecting the challenging economic conditions the chancellor cited. Mr Healey said the government could not wish away these difficulties but must 'choose the course we steer through them'.

Martin Lewis highlighted several announcements as significant, including disappointment over one major issue. There had been speculation the chancellor might end or reduce the freeze on income tax thresholds, but this will continue until 2031. Mr Lewis called the frozen thresholds 'the biggest single tax rise we've had for years', as frozen tax bands mean more earnings pay tax as wages rise due to inflation and average earnings growth.

The freeze was introduced by Rishi Sunak in 2021 and extended by his predecessor Rachel Reeves in 2025. As wage growth and inflation rise through to 2031, frozen thresholds will push more lower earners into paying tax whilst the number pushed into higher bands increases, raising more revenue for the Treasury.

How it is being reported

• Martin Lewis delivers his Budget verdict with three key takeawaysThe money expert appeared disappointed by ‘no news’ on some issues – but was ‘delighted’ by one announcementThe Independent · 29 Oct, 06:22
• Martin Lewis reacts to Budget's ‘biggest single tax rise’The money saving expert has broken down what he thinks of the announcement.Daily Express · 28 Oct, 19:28
• Martin Lewis issues Budget verdict on how it will affect pound in your pocketMartin Lewis, the financial journalist who presents his own TV show, has reacted to the budget delivered by the Chancellor John Healey on Wednesday afternoonThe Mirror · 28 Oct, 18:45
• Martin Lewis delivers his Budget verdict with three key takeawaysThe money expert appeared disappointed by ‘no news’ on some issues – but was ‘delighted’ by one announcementThe Independent · 28 Oct, 14:51
• Martin Lewis delivers his Budget predictions after meeting chancellorThe money expert said there was ‘great difficulty’ for the prime minister and chancellor ahead of next week’s BudgetThe Independent · 27 Oct, 15:27

In this story: John Healey · Martin Lewis · Andy Burnham · Rachel Reeves · Labour · Office for Budget Responsibility · UK

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