Your pay, energy bills and savings: How the Budget affects you

The Budget has brought some relief for families grappling with rising costs, as Chancellor John Healey aims to provide breathing space amid escalating prices. The key measures announced include a £100 one-off Household Energy Payment for residents in council tax bands A to D in England, funded by an extra tax on banks. This payment will be directly deposited into bank accounts.

Additionally, the VAT cut on electricity bills, initially set to expire in April, has been extended until July. Meanwhile, gas standing charges will be eliminated in England, Scotland, and Wales, starting in 2027. The Chancellor estimates that 60% of households will receive an average of £45 in savings annually, though lower users will benefit the most after the anticipated January spike in energy bills.

The temporary 5p cut in fuel duty, introduced by Rishi Sunak in 2022, will remain until July. However, motor fuel prices have surged due to geopolitical factors, with diesel prices surpassing £2 per litre. The chancellor has also scrapped his predecessor's plans to reduce the annual Isa savings limit, opting instead to introduce a new Starter Isa for first-time investors.

Minimum wage rates will increase by 3.9% in April, raising the National Living Wage to £13.21 for those aged 21 and over. Despite this, Labour's promise to narrow the wage gap between older and younger workers remains unfulfilled. All workers will continue to face an income tax income band freeze, potentially impacting pay rises.

Scotland's state pension will rise by £488 annually, while the old basic state pension will increase by £374.40. Additionally, the government plans to abolish the tax on 100 food items, potentially saving households up to £21 per year.