Around 20 million households in the UK will receive a £100 payment to help with energy bills this winter, with the government confirming the money will be paid from January 2027.
Chancellor John Healey announced the one-off payment alongside other cost of living measures, including minimum wage changes and fuel duty cuts, during Wednesday's Budget. The aim is to create "breathing space" for families facing rising energy costs.
Household Energy Payment details
Speaking in the House of Commons, Mr Healey said: "I know rising energy bills are a real worry and people look to government to give them a bit of breathing space. So this winter for 20 million households in council tax bands A to D, I am announcing a £100 energy payment for households."
He added: "That’s a £2.6bn scheme to take the pressure off in the coldest months and see people through to the spring. The Scottish, Welsh and Northern Ireland governments will receive their share of the funding, but I call on them to do the same and give people in all nations in the UK breathing space on their energy bills this winter."
Prime Minister Andy Burnham said: "These changes put money in your pockets now and those everyday costs for good."
Eligibility and payment timeline
The Household Energy Payment will provide £100 to households in council tax bands A to D in England. Up to 20 million households will be eligible, including an estimated 83% of fuel stressed households in England and 88% of households in the bottom three income categories.
Households in England are eligible if they are liable for council tax on, and live in, a property in bands A to D as their main home. Most households exempt from council tax will also be included, with full eligibility criteria to be published in due course. Second homes, empty properties, and households where the householder isn't responsible for paying council tax are not eligible.
Support for those not eligible
The government has set out advice for households that do not qualify for the payment. Guidance on the government website reads: "We know that not all households struggling with their energy bills live in bands A to D. That’s why we’re providing an additional £100 million for local authorities to provide discretionary support to these households who are not eligible for the £100 rebate."
Local councils will set their own eligibility criteria for the discretionary fund and will publish information on how to apply once local arrangements are in place.
