The UK Labour Government’s Budget includes important measures to help with household bills, support working families, businesses and provide more funding for public services right across Wales.
I know firsthand from speaking to constituents across Bridgend & Porthcawl that the cost of living remains their number one concern. Whether it’s heating your home, filling up the car or doing the weekly shop, every penny spent really does add up.
There is always more to do, but I welcome the announcements set out today and how they will support our communities.
Helping with energy bills
The Chancellor announced £100 towards winter energy costs for up to 20 million eligible households in England, with funding also being made available to the Welsh Government so a similar support package can be implemented here in Wales.
Other measures include extending the temporary removal of VAT on household electricity until July 2027, removing import taxes on home heating oil and introducing support for eligible households struggling with energy debt.
The UK Government has also asked the energy regulator to remove gas standing charges, with changes planned to make electricity standing charges fairer as well. These reforms are still being developed and will be set out in due course.
Easing the cost of living
The existing 5p cut in fuel duty will continue until July 2027, helping motorists with petrol and diesel costs.
Import taxes are also being removed from more than 100 food products, which should help reduce the cost of the weekly shop for consumers.
People who use their own cars for work will benefit from higher tax-free mileage rates, while new tax arrangements will help lower-income pensioners keep more of their money.
The National Living Wage will also increase to £13.21 an hour from April 2027, giving a pay rise to eligible workers.
A fairer deal for former miners
This is particularly welcome news for communities across Bridgend & Porthcawl with a proud mining heritage and as longtime campaigner on this issue.
The Government has announced that 100% of future surpluses from the Mineworkers’ Pension Scheme and British Coal Staff Superannuation Scheme will go to members, rather than being shared with the Government.
Work will also continue towards transferring the remaining Guarantor’s Fund for the benefit of former mineworkers.
It’s another important step towards delivering a fairer deal for those who spent their working lives helping to power our country.
Supporting families
From April 2029, more parents will be eligible for financial support when taking time off following the birth or adoption of a child.
This includes eligible self-employed fathers, partners and adopters who currently miss out on certain parental payments.
It’s about giving more parents the opportunity to spend those important early weeks with their families.
Backing local businesses
Our local businesses are vital to Bridgend & Porthcawl, providing jobs and supporting our communities.
The Budget includes measures to reduce electricity costs for eligible industrial businesses and provide additional support for smaller breweries and other drinks producers.
The Trading Allowance will increase from £1,000 to £3,000 in April 2027, allowing eligible people to earn more from small-scale trading without paying Income Tax on that income.
Additional funding will also be provided to Wales following business rates changes in England. The Welsh Government will decide how that funding is used.
£450 million more for Wales
The UK Labour Government has announced an additional £450 million for public services in Wales.
This money will be available to the Welsh Government to support services such as healthcare, education and local government.
It is imperative that this funding is used where it’s needed most, making a real difference to services and communities across Wales, including in Bridgend & Porthcawl.
Delivering for Bridgend & Porthcawl
The Budget is about giving people some breathing space while investing in our future.
From help with household bills and support for working families to backing businesses and delivering a fairer deal for former miners, these are welcome steps forward.