UK Treasury £130 Payment to 20M Households

John Healey just announced a £130 one-off payment to 20 million households, a lifeline amid Iran-war-driven energy spikes. The package also extends a cut in the electricity sales tax and scrubs the gas-bill surcharge, easing winter bills. Banks will face a surcharge hike from 3% to 6% for 15 months, and gambling machine duty will rise. Healey warned that the war has pushed borrowing costs to a decade-high, raising debt interest by £14 billion this year. Despite a 1.2% growth forecast for 2026, inflation sits at 3.5% and is expected to climb. The Office for Budget Responsibility now sees tax burden hitting 38.6%, leaving little wiggle room for future spending. With debt over £3 trillion and interest payments due to hit £160 billion by 2032, the budget feels cautious than bold. Healey's cautious stance leaves households breathing space now, but the long-term impact on public services remains uncertain.