Autumn budget 2024: What we expect and hope to see

According to business advisory firm BDO, you should expect to see more information on the UK Government’s National Wealth Fund (NWF).

This was key pledge in Labour’s election manifesto, where the UK Government will allocate funds in several areas including:

• £1.5 billion to create new gigafactories that specifically manufacture batteries for electric cars.
• £1 billion to fund technologies that capture carbon.
• £500 million to fund ‘green hydrogen’ manufacturing.

BDO also predicts that the chancellor will outline more plans for GB Energy, perhaps giving more details on its first investment projects.

We expect to see the UK Government announce some kind of support package to help people who are struggling with their bills over winter.

There’s been little said about this since the Guardian published this story about it in August, but it could make an appearance in the budget. One of the potential measures discussed as part of this support package is doubling the Warm Home Discount to £300.

Another longer-term solution to rising energy costs is the introduction of social tariffs for energy. Energy Live News covered this story about in August following a meeting between the UK Government, Ofgem and energy suppliers.

Social tariffs can give help to people who can often need it most, including:

• disabled people
• people entitled to certain benefits
• people in fuel poverty

With average energy bills rising to £1,717 due to the increased energy price cap, we expect to see some extra support announced.

According to the Independent, the chancellor is considering changing Labour’s rules on borrowing and investing. This change could make it easier for the government to borrow money for investing in green projects.

The new UK Government has only been in power for a few months. But it has taken some steps towards its goal of making Britain ‘a clean energy superpower’. The first of these was the creation of Great British Energy (GB Energy).

And in recent weeks, we’ve seen a few other changes in government energy policy.

Windfall taxes apply to the profits that gas and oil companies make, which was previously set at 35%.

But in late July, the UK Government announced that this tax would increase to 38% from 1 November 2024 and would run until 31 March 2030.

In its election manifesto, the government said energy windfall taxes would help pay for the creation of GB Energy.

The Winter Fuel Payment is now a means-tested payment so only older people who receive certain benefits are still eligible.

To qualify you must have been born before 23 September 1958 and be claiming one of the following benefits: 

• Pension Credit 
• Universal Credit 
• income-related Employment and Support Allowance (ESA) 
• income-based Jobseeker’s Allowance (JSA) 
• Income Support 
• Child Tax Credit 
• Working Tax Credit 

It’s thought that many people who are eligible for Pension Credit haven’t applied for it, so it’s worth checking if you’re eligible.

Previously, the Winter Fuel Payment was a universal benefit for anyone born before 23 September 1958.

The UK Government has recently pledged £22 billion over 25 years to fund carbon capture and storage projects in Merseyside and Teesside.

These projects will capture CO₂ from industrial processes before it goes into the atmosphere. Instead, it’s stored underground where it remains for tens of thousands of years.

It’s estimated that these projects will remove 8.5 million tonnes of CO2 emissions each year.

There’s much speculation around what may be in the autumn budget. Here’s what our policy experts would like to see covered:

This would involve:

• Setting out the policy options to rebalance electricity levies so electricity isn’t so much more expensive than gas.
• Introducing the Clean Heat Market Mechanism, which would support more people in getting a heat pump.
• Introducing the Future Homes Standard, so all new homes are built with low carbon heating.

The UK Government has claimed that its Warm Homes Plan will, over the course of this parliament:

• lift 1 million homes out of fuel poverty
• make energy efficient improvements to 5 million homes.

The UK Government also intends to raise the minimum standards for EPC ratings in privately rented homes from E to C. This change would encourage the installation of energy efficiency measures.

This should make these homes warmer, less prone to condensation and damp, and have lower energy bills as a result.

The UK Government’s Local Power Plan will support community energy projects. This will help small and medium-scale energy generators who have the potential to lower local energy bills to scale.

There are several challenges in setting up a community energy project. So, we want to see a commitment from the UK Government to provide support, knowledge and resources for these projects to thrive.

For more information, read our blog that shows how local areas are already seeing the benefits of community energy.

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