The government has announced that around 20 million households in England will receive a £100 payment this winter to help with energy bills. The Household Energy Payment, costing £2.6 billion, was unveiled by Chancellor John Healey in his first Budget last week.
In his Budget speech, Mr Healey said he wanted to give households and businesses "breathing space today" from everyday costs. He pointed to rising energy bills as a concern, citing the conflict in the Middle East, and described the payment as one further step to take the pressure off in the coldest months.
Who is eligible for the £100 payment?
The payment is for households in England in Council Tax bands A to D. Around 80 per cent of households in England are due to receive the £100 Household Energy Payment, the government said.
Outlining eligibility, the government stated: "Households in England are eligible for the Household Energy Payment if they are liable for council tax on, and live in, a property in council tax bands A to D as their main home. This will include most households exempt from council tax, with full eligibility criteria to be published in due course. Second homes, empty properties or households where the householder isn’t responsible for paying council tax are not eligible."
Mr Healey said money would be given to devolved administrations and called on them to "do the same and give people of all nations in the UK breathing space on their energy bills this winter". Devolved governments in Scotland, Wales and Northern Ireland will receive their share of the funding via the Barnett formula so that they can provide similar support.
How and when is the money paid?
The support is being provided via the Council Tax system. Most people will receive the money directly into their bank account this winter, the Chancellor announced. However, some people who don't pay by direct debit will have to take action and apply for the rebate once their council gets in touch.
The payments will be made from January 2027. The government said: "If you pay by direct debit and live in bands A to D, you don’t need to do anything – the rebate will be paid directly into your bank account. If you don’t pay by direct debit, your council will invite you to apply for the rebate directly."
The government also warned that nobody other than the council should get in touch asking people to claim the rebate. It advised only giving out personal information if certain it is the local council contacting you, and to double check with the council if unsure whether a message is genuine.
