Around 20 million households in England in council tax bands A to D are set to receive a £100 Household Energy Payment this winter, part of Chancellor John Healey's Budget measures to address rising energy costs.
The scheme, costing £2.6 billion, was announced during Healey's maiden Budget speech. He described the Budget as providing households and businesses with "breathing space today" from everyday costs, amid what has been characterised as a "steady-as-she-goes" fiscal statement.
Eligibility and payment details
Speaking in his Budget speech, Healey said: "Let me say this to families at home. I know that with the conflict in the Middle East, rising energy bills are a real worry. I know that people look to Government at times like this, not to solve all their problems, but to give them a bit of breathing space."
He added: "So today I'm taking one further step. This winter, for 20 million households in council tax bands A to D, I am announcing a £100 energy payment for households, paid directly into people's bank accounts to deal with rising energy bills. That's a £2.6 billion scheme to take the pressure off in the coldest months and see people though to the spring."
The government confirmed the payments will go to households in England in council tax bands A to D. Approximately 20 million households stand to benefit, with roughly 80 per cent of English households due to receive the payment.
Who does not qualify
Setting out eligibility criteria, 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."
It added: "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."
Healey stated funds would be allocated to devolved administrations, urging them to "do the same and give people of all nations in the UK breathing space on their energy bills this winter". Devolved administrations in Scotland, Wales and Northern Ireland will receive their portion of the funding through the Barnett formula.
How the payment will be made
The support is being delivered through the Council Tax system. Most people will get the cash paid straight into their bank account this winter, with payments issued 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."
It also warned: "Nobody other than your council should get in touch asking you to claim the rebate. Only give out your personal information if you are certain it is your local council contacting you. If you're unsure whether a message is genuine, double check with your council."
