On  28th October 2026, the UK government announced their Autumn Budget, including a number of measures designed to help households with their energy costs. You can find more information on what the Autumn Budget 2026 means for your energy bills on the government’s website.

The temporary removal of VAT from domestic electricity bills has been extended, a new £100 Household Energy Payment for eligible households in England was announced (with the devolved governments of Scotland, Wales and Northern Ireland given the funding to follow suit), as well as plans to remove gas standing charges in the future.

The Government has extended the temporary cut in VAT on domestic electricity from 5% to 0% until 1 July 2027. The 0% rate first came into effect on 1 October 2026.

It’s important to remember that the price cap isn’t a limit on your total energy bill. How much you actually pay will depend on your choice of tariff and how much energy you use.

The Government has announced a £100 Household Energy Payment for households in Council Tax bands A to D in England. Payments will start from January 2027, with up to 20 million households expected to be eligible. The devolved governments of Scotland, Wales and Northern Ireland have also been allocated funding to offer Household Energy Payments.

If you’re eligible and pay your Council Tax by Direct Debit, the payment will be made directly into your bank account, so you won’t need to apply. If you don’t pay by Direct Debit, your local council will invite you to apply.

The Government has also provided £100 million for local authorities in England to support households particularly affected by rising energy bills that may not qualify for the £100 payment.

The Government has asked Ofgem to remove gas standing charges on domestic energy bills in Great Britain, aiming for this to happen by the end of 2027, or as soon as possible afterwards.

Read more: Gas standing charges are being scrapped: what does it mean for your energy bill?

A standing charge is a daily amount you pay regardless of how much energy you use.Under the proposed change, suppliers would instead recover these costs through gas unit rates, and targeted measures will be considered for households less able to benefit from the change.

The Government has also committed to reforming electricity standing charges, with further details expected in 2027.

The Government has announced a new strategy to tackle energy debt, including measures designed to prevent debt building up, improve repayment and strengthen support for households. A one-off targeted debt relief scheme for eligible households is also due to launch in 2027.

The Government estimates that the wider Energy Debt Circuit Breaker measures could save a typical household almost £30 by 2030.

The Government has said that no new policy costs will be added to energy bills until a new Cost Control Framework is introduced at the 2027 Spending Review.

It has also decided not to introduce the planned Gas Shipper Obligation on gas bills. Instead, the Government says it will fund the relevant hydrogen projects itself, subject to its stated funding conditions.

The measures announced in the 2026 Budget build on changes introduced following the 2025 Autumn Budget.

From 1 April 2026, the Government began funding 75% of the domestic cost of the Renewables Obligation (RO) through general taxation, rather than household electricity bills. Funding of the Energy Company Obligation (ECO) and Great British Insulation Scheme (GBIS) through consumers’ energy bills also ended.

These changes have been reflected in ScottishPower tariffs since 1st April 2026.

If you’re struggling to pay your energy bill, we recommend contacting us as soon as possible.  You can find more information about how ScottishPower can support you to manage your energy costs on our website.