UK’s poorer half gains just £14 more support, Resolution Foundation estimates
The think tank says the £4.4bn Budget package spreads help too thinly and forecasts energy bills after support above those during the 2022–23 price shock, in inflation-adjusted terms.
In this article
The poorest half of UK households will gain only £14 more on average than the richest half from cost-of-living support this year and next, the Resolution Foundation estimates. The think tank called the package “badly targeted” in analysis reported by the Guardian on 29 October.
The assessment follows UK Chancellor John Healey’s Budget on 28 October 2026, which announced £4.4bn in cost-of-living support. The foundation’s projected gains cover wider support measures, rather than the individual £100 winter payment included in the package.
| Household group | Projected average gain |
|---|---|
| Poorest half | £158 |
| Richest half | £144 |
Analysis
Why the foundation questions the support
The foundation said the small difference between the two groups represented a “complete failure to target help at those who need it most”. It also argued that failure to design a targeted energy discount over the preceding five years had left the UK relying on 35-year-old property valuations to decide eligibility for energy-bill support this winter.
Cost of living support is being spread far too thinly and will leave even those families receiving help facing higher energy bills than they did during the last energy price shock.
The foundation forecasts typical energy bills after support of £1,750 in 2026–27. It puts the comparable figure during the 2022–23 energy-price shock at £1,685 and says the forecast bill is higher in real terms—that is, after accounting for inflation.
The planned £100 winter payment
Healey raised taxes on banks and landlords to fund the £100 winter payment, the Guardian said. The payment is planned for 20 million families this winter; the foundation’s larger average gains remain estimates of wider support, not payments already received.
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