Budget 2026: What can the chancellor do to make your life better?

Chancellor John Healey will deliver his first Budget on October 28th and we can expect a big focus on tackling the cost of living. But struggling households can’t wait forever for meaningful support, so what could he announce that will make a difference right here and now?

Money Wellness believe there’s plenty the government can do that doesn’t demand any costly, lengthy or major changes to what’s already in place.

Simply closing gaps in the system could be a quick win and stop small problems from becoming much bigger ones.

So let’s look at some specific measures that could be taken.

Ending the five-week wait for universal credit

People can turn to and rely on universal credit for all sorts of reasons, such as a job loss, being diagnosed with a long-term health issue or escaping an abusive relationship.

But it can take about five weeks to get your first payment - a delay that struggling households can ill afford and can lead to their financial problems getting worse.

While advance payments can help in the short term, they’re loans, not grants, so repayments come straight out of future universal credit payments.

We’d like this to change, with a non-repayable grant for the assessment period being introduced instead.

This could prevent people’s debt problems getting worse exactly when they’re reaching out for help and make households more resilient in tough times.

New social tariffs for energy

More than four in ten (42%) of the people we support come to us with gas and electricity arrears.  

But our analysis suggests that nearly nine in ten (87%) of these households could potentially meet common eligibility criteria for a social tariff, such as receiving means-tested benefits, disability benefits or experiencing financial hardship.

That’s why we’d like the government to introduce a national social tariff that would automatically reduce energy bills for eligible households.

This would create a fairer system and prevent people from falling into debt in the first place, rather than relying on them to seek help after financial problems have already developed.

More consistent support for water customers

If someone is finding it hard to keep up with water bills, the help available often depends on where they live.

And the value of what support you can get through social tariffs varies significantly, depending on which provider you’re with.

So we’re asking for discretionary or temporary social tariff schemes to be replaced by permanent, means-tested social tariffs.

Making the Holiday Activities and Food programme permanent

More than two million children in England can access free holiday clubs, fun activities and a hot meal during the school holidays, thanks to the Holiday Activities and Food (HAF) programme.

And while that can really help ease the pressure on low-income households, the impact of HAF could be even greater if it was made permanent.

If HAF funding was guaranteed year after year, local authorities and their partners would be able to plan properly, build lasting partnerships and, ultimately, offer better value for money.

But that’s not the only change we’d like to see.

HAF could be opened up to more households, such as those who’ve been flagged as vulnerable by local authorities and those dealing with debt problems or a financial crisis.

And more could be done to ensure HAF is delivered consistently in every part of the country, as about 1.4 million children missed out on free holiday clubs last year, despite being entitled to them.

Remove imprisonment as a sanction for council tax debt

Council tax debt is a big issue for financially vulnerable households. 

In fact, almost half (45%) of the people we support with priority debts have council tax arrears.

But many tell us that many enforcement agents still use the threat of potential imprisonment in their communications. 

No other essential household debt in England comes with the threat of a prison sentence, so we believe this option should be removed.

After all, it doesn’t do anything to help people in financial difficulty.

Instead, it just makes financial hardship worse, doesn’t recover any money for councils and puts strain on the court system.

Watch this space

With just a few weeks to go until the Budget, the rumours are already swirling about what the chancellor will or won’t announce.

But as the speculation grows, you can count on us to explain what it all means for you and your wages, benefits and household bills.

We’ll be here on the day to run through all the key announcements and let you know what’s changing.