Think tank calls Healey budget "scattergun" and warns of "a painful second half"
The Resolution Foundation, a think tank, said on 29 October 2026 that John Healey's budget was a "scattergun" package that did little to boost living standards and left Britain facing "a painful second half" of the parliament. The Guardian
Much of the budget's household support is aimed at energy costs. Healey's measures include scrapping standing charges on gas bills, the fixed daily fees that appear on energy bills regardless of how much fuel a household uses. They also include £100 energy payments for up to 20 million households in council tax bands A to D, the bands that group homes by property value for local taxation.
The think tank said that even with these measures, household energy bills in 2026 would stay higher than during the last energy shock. The Guardian Typical energy bills after support are forecast at £1,750 in 2026-27, which is higher in real terms, meaning after allowing for inflation, than during the last energy price shock.
The Resolution Foundation said cost-of-living subsidies would give the poorest half of households an average gain of £158 in 2026 and 2027, compared with £144 for the richest half. Its chief executive, Ruth Curtice, said the budget showed "a complete failure to target help at those who need it most." The foundation also said the £100 energy-bill cut is spread too thinly. Reuters
The foundation criticised the energy discount scheme for relying on 35-year-old property valuations to decide who qualifies for help with energy bills in winter 2026. It also predicted that typical disposable incomes, meaning what households have left after tax and benefits, would fall by £1,050 between October 2026 and the end of the parliamentary term in 2028-29. That fall, it said, would limit the increase over the five-year parliament to £600.
Other measures include tax breaks for high street businesses and higher taxes on banks and gambling.
The Conservatives criticised the budget as "disjointed." BBC News Healey has defended the plan to scrap standing charges, saying they are unfair and outdated and that removing them would give millions of households breathing space. Reuters Some Labour lawmakers said the plan would help the government get through the winter months, when energy costs bite hardest. Reuters
Healey also said the UK will reduce what he called "unsustainable" welfare costs. Reuters
