Healey's first budget criticised as poorly targeted cost-of-living support

Summarised from 6 outlets · 9 reports · Updated 29 Oct, 10:15 · Archive

Chancellor John Healey's £4.4 billion cost-of-living package drew criticism for spreading help too thinly, with energy bills still forecast higher than during the last crisis.

Chancellor John Healey delivered his first budget on Wednesday, characterising it as 'a budget built on fiscal discipline' to address rising energy prices. The package included £100 lump-sum payments to 20 million households in council tax bands A to D and scrapping standing charges on gas bills, saving 60 per cent of households an average of £45 a year. The total cost-of-living support was valued at £4.4 billion.

The budget drew immediate criticism from the Resolution Foundation, an economic thinktank. The foundation said Healey's measures were poorly targeted and spread support 'too thinly'. Its analysis found that the poorest half of households would gain £158 on average in the coming years, compared with £144 for the richest half—a difference of just £14. The thinktank's chief executive, Ruth Curtice, said the budget highlighted 'a complete failure to target help at those who need it most'.

The foundation warned that despite the government support, typical energy bills were forecast to reach £1,750 this year, higher in real terms than the 2022–2023 energy price shock when bills reached £1,685. This meant families receiving help would still face higher energy bills than during the last crisis.

The criticism carries particular weight because the Resolution Foundation was until two years ago led by Torsten Bell, now a Treasury minister who appeared alongside Healey when the budget was announced. Bell played a key role in drawing up the government's measures.

Several outlets characterised the budget as 'scattergun' in its approach. The foundation said the measures did little to boost living standards and warned that Britain faced a 'painful second half' of the parliament. The Independent reported that the think tank warned decisions facing the government would 'unavoidably get starker' next year because of the failure to tackle challenges now.

When questioned on borrowing costs, Healey told the BBC that Britain had been 'paying a premium' since the Liz Truss mini-budget, which he said the markets termed a 'moron premium'. He argued the budget was significant and contested accusations it was too modest, but acknowledged that major departmental spending cuts would follow at next year's spending review.

Opposition politicians and commentators questioned whether the budget represented sufficient action. Politico Europe reported that some observers felt the budget 'may have landed with a whimper rather than a bang'. The Guardian noted that compared with a normal budget, Healey's tax and spending initiatives were 'mostly relatively minor', meaning that the opposition had less to attack.

How it is being reported

• 'I give up, they haven't got a clue!': Voters give their verdict on John Healey's 'is that it?' BudgetDisgruntled Brits weren't convinced by the Chancellor's budget, with one punter telling the Daily Mail witheringly 'I don't think anyone in the Labour government is financially literate'.Daily Mail · 29 Oct, 10:08
• Britain paying ‘moron premium’ on borrowing since Truss’s disastrous mini budget, chancellor saysIt came as John Healey warned that the UK faces more ‘hard decisions’ about its spending priorities in the coming years, after delivering his first Budget on WednesdayThe Independent · 29 Oct, 09:55
• ‘What breathing space?’ Top economist and Labour MP debate the BudgetMoments after John Healey sat down in the Commons, the City AM studio was filling up with guests to chew over what we’d just heard. Our columnist Helen Thomas, aka Blonde Money, joined Editor Christian May and Comment Editor Alys Denby to discuss the economic context and political impact, before it fell to Labour’s Callum [...]City AM · 29 Oct, 09:46
• Healey’s Budget slammed as ‘scattergun’ by think tank formerly ran by Treasury ministerThe Resolution Foundation says the Budget will do little to address ‘the sharp challenges facing Britain’The Independent · 29 Oct, 09:42
• Worst Is Yet To Come After Labour's 'Scattergun' Budget, Experts WarnLabour’s “scattergun” Budget has been criticised by experts for spreading cost of living support “too thinly” – meaning Brits have a tough period ahead of them. Chancellor John Healey promised to offer the public “breathing space” in his maiden Budget on Wednesday with a £4.4 billion cost of living support package. That included giving a £100 lump sum to 20 million households in council tax bands A to D and scrapping standing gas charges, saving 60% of households an average of £45 a year. However, the Budget has been widely criticised for tinkering around the edges, rather than offering…HuffPost UK · 29 Oct, 09:08
• ‘Scattergun’ budget will still leave Britons facing higher energy bills, says leading thinktankHealey’s bid to provide ‘breathing space’ over Iran war gives rich almost as much as poor, says Resolution Foundation Business live – latest updates Budget 2026: what it means for your wallet, your mortgage and your pay John Healey delivered a “scattergun” budget that did little to boost living standards and left Britain facing “a painful second half” of the parliament, a leading economic thinktank has warned. The Resolution Foundation said on Thursday that measures to ease household gas and electricity costs would still leave energy bills higher this year than during the last energy shock.…Guardian World · 29 Oct, 08:37
• Healey accused of a ‘complete failure’ to target energy bill support at those most in need – UK politics liveResolution Foundation says ‘poorest half of households will gain… just £14 more than the £144 received by the richest half’ Good morning. The day after the budget is often the moment when big initiatives announced by the chancellor the day before with a flourish start to unravel as experts pore over the small print. There is not much of that happening this morning – mainly because John Healey did not have any really big initiatives up his sleeve. Compared with a normal budget, his tax and spending initiatives were mostly relatively minor . That means that the opposition parties have been…Guardian World · 29 Oct, 08:36
• Budget 2026: We answer your questionsSo was that it? Sam Coates and Anne McElvoy have slept on it – and are feeling the budget may have landed with a whimper rather than a bang. They weigh up the case for the defence: has John Healey played it safe to reassure the markets, keep Labour onside and give households some immediate […]Politico Europe · 29 Oct, 08:26
• Reader Q&A: Our money and economics correspondents answer your Budget 2026 questionsThe 2026 budget has been revealed; how will it affect you personally, will it change the country and has chancellor John Healey done enough to prepare for the challenges ahead? Our money and economics editors Hilary Osborne and Heather Stewart will be answering your questions from 3pm (GMT) today. Sign up or sign in to join the discussion. Post your questions in the comments below. Yesterday Chancellor John Healey gave his maiden budget under Andy Burnham’s leadership, announcing measures to cut energy bills funded by a windfall tax on banks. He characterised his plan as “ a budget built on…Guardian World · 29 Oct, 08:00

In this story: John Healey · Andy Burnham · Resolution Foundation · Ruth Curtice · Torsten Bell · Liz Truss · Rachel Reeves · United Kingdom

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