£100 Energy Payment for 40,450 North Northumberland Homes

Around 40,450 homes in North Northumberland are set to receive a £100 Household Energy Payment announced in today’s Budget, according to the constituency’s MP, David Smith.

The payment goes to eligible households in council tax Bands A to D in England. Mr Smith’s office says it will be paid for by a 3% rise in the Bank Surcharge, the extra tax on bank profits, for 15 months.

The Chancellor, John Healey, also extended the temporary 0% VAT rate on household electricity until at least 30 June 2027, and said Ofgem will work to abolish standing charges on gas.

Business rates for shops, pubs and leisure

The Budget includes a £1 billion business rates package. The threshold for Small Business Rate Relief for retail, hospitality and leisure premises rises from £12,000 to £18,000 of rateable value.

Mr Smith’s office says that under the new thresholds an estimated 52% of all retail, hospitality and leisure properties in the North East will pay no business rates at all.

That support is to be paid for by raising the duty on higher-stakes gaming machines from 20% to 25%, taking adult gaming centres and vape shops out of some business rates reliefs, and tightening the rules on online marketplaces so that sellers find it harder to avoid paying VAT.

What the MP said

Mr Smith, the Labour MP for North Northumberland, linked the energy payment to the cost of heating homes off the gas grid. “I know that many of my constituents are worried about energy costs as we go into the winter, particularly those who rely on heating oil and LPG to heat their homes, and the £100 payment will ease the pressure for thousands of local families,” he said.

“This follows the 4% tariff cut on kerosene heating oil announced earlier this week, which should help reduce costs and improve supply.”

On business rates, he said: “I’ve also heard from many small businesses over the last year who are struggling with rising costs, so the increased Business Rate Relief threshold is really welcome. It will make a difference to local businesses and give our high streets and town centres a boost.”

He added: “This is good news for families and businesses across North Northumberland. The key thing is that this help is being delivered in a responsible way, with sensible choices about how it is paid for. These are Labour decisions: backing families and businesses today while building a stronger Britain for tomorrow.”

The Chancellor was quoted in the same statement. “This is a Budget for breathing space today and fresh hope for the future in North Northumberland,” Mr Healey said. “We are putting money back into the pockets of families, cutting costs for motorists and backing the shops, pubs and businesses at the heart of our communities.”

What else is in the Budget

The statement says the Budget also backs investment and innovation, supports first-time buyers and affordable housing, and gives local leaders more control over economic decisions. The full detail is in the Budget 2026 document on GOV.UK.

For the county’s other Budget news, including more than £85 million for the Offshore Renewable Energy Catapult in Blyth and the 2027 investment summit coming to Newcastle, see our earlier report.