John Healey's first budget overshadowed by incredible X-rated error in Commons
Chancellor John Healey's first budget was marred by an incredible X-rated mistake in the House of Commons. Andy Burnham's Treasury chief announced a series of energy bill lifelines during his Commons address earlier on Wednesday. But he boobed by getting the name of the Hampshire town Aldershot wrong, instead calling the English army town 'Aldersh*t'. His mistake was leapt upon by hundreds of folk listening to every word of his big fiscal announcements.
One said: "JOHN HEALEY JUST SAID "ALDERSH*T" BY ACCIDENT. Almost worth listening to the Budget for." Elsewhere, Healey offered hope to Brits struggling to stay afloat in the cost of living crisis. A £100 cash payment will be paid to 20 million households in council tax bands A to D at a cost of £2.6 billion. But campaigners say the scheme will "barely dent" the price hikes set to hit over the winter months. The Chancellor said the measure would give Brits "breathing space" on energy bills.
He also announced gas standing charges are to be scrapped with similar reforms to follow for electricity bills. He said it would help almost two-thirds of households save an average of £45 a year. But critics said the measure is a drop in the ocean compared to the increased cost of energy Brits are forecast to endure. Ofgem's price cap rose by 3.6% to £1,723 for a typical household on October 1, with a further rise of around 22% forecast in January.
Simon Francis, co-ordinator of the End Fuel Poverty Coalition, said: "The Chancellor talked the talk on energy bills, but ultimately failed to walk the walk. "Wholesale gas prices have tripled since February and bills are expected to rise further during the sixth winter of high energy costs. "Yet the only immediate support is a payment that will barely dent the predicted rise households face in January. Because it is paid directly into household accounts in England, it may not even be spent on staying warm this winter.
"Beyond this winter, the Chancellor's commitments appear lukewarm at best." Citizens Advice chief executive Dame Clare Moriarty said: "We welcome efforts to ease the relentless cost-of-living squeeze. Additional support this winter will give most households a helping hand, but significant gaps remain. "With energy prices expected to soar, adding £60 a month to already inflated bills, many are left facing another difficult winter. "For people hit the hardest, more support will be needed and without further action, shifting gas standing charges into unit prices risks punishing people on low incomes with higher heating needs.
"To make a real difference now and beyond, the Government must go further, ensuring support is targeted and reaches those with the greatest energy needs, including families with children and disabled people." Cornwall Insight, which provides widely respected energy price forecasts, warned the savings from the gas standing charge shift would be "small" in relation to recent bill rises, but said it could also give the transition to heat pumps a boost.
Office for Budget Responsibility (OBR) economist David Miles described a "pretty grim picture" where more people are living paycheck to paycheck. He said it is "pretty unusual" in the history of the UK that there has been "virtually no growth per person" in real household disposable income. Mr Miles believed that it is to "quite a substantial extent" a reflection of increases to energy prices, which he called a "loss to the UK". Over a 10-year period, starting just before Covid and up to 2029, he said there may be a 1% increase in household disposable income.
"It has been a dismal period in British economic history," he added. For the latest breaking news and stories from across the globe from the Daily Star, sign up for our newsletters .
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