What the Autumn Budget 2026 means for disabled people

The Chancellor, John Healey MP, announced the Autumn Budget on 28 October. The Autumn Budget sets out some of the Government’s plans for spending and taxes for the year ahead.

We’re sharing details of the key announcements and what they mean for disabled households.

Gas standing charge removal

The Treasury has confirmed that standing charges on gas bills will be removed in 2027. A standing charge is a fixed amount paid every day even if no gas is used. The cost of a daily standing charge is estimated at £108 per household per year. These will instead be moved onto the gas unit rate.

The gas unit rate is the price paid for each unit of gas used. This means households that use more gas will pay more towards costs that are currently recovered through the standing charge. Households that use little or no gas, particularly during summer, could see lower bills. 

What this could mean for disabled people

Households that can reduce their gas use during warmer months could benefit from lower bills during summer. However, we know that for many disabled households, reducing usage is not possible due to medical need. We are concerned disabled households may still face higher costs.

We have joined others in the sector in calling for tailored energy support for disabled households. Our research shows that disabled households face extra costs of £1,095 per month. We will continue to campaign to reduce the extra cost of disability.

Household Energy Payment: £100 council tax rebate for households in bands A to D 

The government will provide a £100 payment for households in bands A to D in England. This will be delivered by local authorities from January 2027. This will provide support to 20 million households.

What this could mean for disabled people 

This £100 payment is a welcome initiative which will help qualifying households. However, we have been calling for energy support tailored for disabled households with high energy costs.

Extension of VAT cut on electricity bills

VAT was cut from electricity bills in October. The support will now run until July 2027, rather than ending in April. It is expected to reduce the Ofgem price cap by £50 a year by April 2027.

What this could mean for disabled people

This extension will reduce electricity costs for disabled households, this is a welcome step. However, the £50 reduction to the annual price cap is small compared with the high and unavoidable energy costs many disabled people face. We hope that the Government will consider expanding the Warm Home Discount to those on disability benefits.

Welfare

Welfare reform

The Chancellor said that welfare reform will come after the Timms and Milburn Reviews have been published.

However, the Government has confirmed that it will respond to the reviews by the end of this year. It will then publish a White Paper setting out its plans for new legislation in early 2027.

Scope will continue to call for a fairer and more dignified disability benefits system.

Carer’s Allowance earnings limit tapered

At the budget, the Government announced changes to Carer’s Allowance including ending the cliff-edge. Carer’s Allowance has an earnings limit of £204 a week after taxes and expenses. Claimants who currently earn just a penny over the limit have their benefit stopped. In 2030/31, the earnings limit will be tapered by £1 for every £1 earned. A tapered earnings limit would not change who can claim Carer’s Allowance, but it could make it easier for disabled carers to move into and stay in work.

Ring Fencing Preventative Services

This policy will change how the budgets of local authorities work. It will protect preventative services from budget cuts. For example, programmes that help reduce homelessness and rough sleeping.

There are few details about all the types of services this policy will ring fence in budgets. It could include employment support for disabled people who can and want to find work. Scope will call for services that support disabled people to be protected. 

Scope’s response

Scope welcomes measures in the Budget that will help ease some of the pressure on households. We also welcome the opportunities that greater local control of employment support could bring. However, disabled people continue to face higher, often unavoidable costs. We want to see the Government provide targeted energy support for disabled households.

Notes

If you’d like to stay up to date with future communications on these announcements or find out what action you can take:

• Follow Scope on social media on Facebook, Instagram, and TikTok.
• Sign up to our campaign emails.

If you are concerned about any of these issues, you can get in touch with Scope's helpline. We provide free, independent and impartial advice and support on issues that matter to disabled people and their families.

If you are concerned about your energy, you can get in touch with Scope’s Disability Energy Service. We provide free energy and water support for disabled people and their families across the UK and Wales.