# Help is on the way… if you’re on benefits! Healey’s Budget promises ‘breathing space’ on energy bills – but could drag millions deeper into tax

- URL: https://talkfuse.com/story/help-is-on-the-way-if-youre-on-benefits-healeys-budget-promises-breathing-space-on-energy-bills-but-could-drag-millions-deeper-into-tax/
- Published: 2026-10-28T15:57:17+00:00
- Updated: 2026-10-28T16:23:30+00:00
- Original publisher: Daily Mail (publisher lean: Right)
- Original article: https://www.dailymail.com/news/article-16245619/Healey-Budget-energy-bills-tax-Labour-Burnham.html?ns_mchannel=rss&ns_campaign=1490&ito=1490
- Topics: Middle East, Space, Technology, World

## Key points

- Lowest-income pensioners will get a tax allowance.
- Defence spending gets £4.7 billion more.
- Growth forecasts were revised in both directions.

## Summary

The Budget now includes a special tax allowance for the lowest-income pensioners, intended to stop the state pension increase in April from drawing them into tax. This is part of a package that promises some households breathing space on energy bills, while other tax changes could bring millions more into the tax system.

The Defence Investment Plan gets an extra £4.7 billion and targets defence spending of 3 per cent of GDP by 2030, but the Government will not set out the funding source until next year’s Spending Review. The OBR raised its growth forecast for this year from 1.1 to 1.2 per cent, while cutting the next forecast from 1.6 to 1 per cent; the minimum wage will rise by 3.9 per cent in April, and plans to cut the £20,000 cash ISA allowance have been dropped.

## Coverage

- [Daily Mail: Help is on the way… if you’re on benefits! Healey’s Budget promises ‘breathing space’ on energy bills – but could drag millions deeper into tax](https://www.dailymail.com/news/article-16245619/Healey-Budget-energy-bills-tax-Labour-Burnham.html?ns_mchannel=rss&ns_campaign=1490&ito=1490)
- [The Guardian: Will John Healey’s ‘breathing space’ budget deliver what Britain needs? Our panel responds | Panel](https://www.theguardian.com/commentisfree/2026/oct/28/john-healey-breathing-space-budget-panel-responds)

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.