Millions of households in England that do not qualify for the new £100 Household Energy Payment could still receive help through a separate £100 million government discretionary fund, with local councils setting their own eligibility criteria for the scheme.
Budget announcement and qualifying bands
Chancellor John Healey, on Wednesday, October 28, announced a range of measures designed to ease high energy costs and give households "breathing space" on their bills. The Budget introduced a new £100 payment for households in England in Council Tax bands A to D.
Around 20 million households are expected to qualify for the payment, which is scheduled to roll out in January 2027. The Government has confirmed that eligibility applies to households liable for council tax on, and residing in, a property in bands A to D as their primary residence, meaning homes in bands E to H will miss out.
How council tax bands are set
Council Tax bands in England are determined by a property's market value as of April 1, 1991, not its current value. Band A is the lowest band, covering homes worth up to £40,000, while Band D, the standard baseline used by local authorities to calculate proportions, covers properties valued between £68,001 and £88,000.
Bands outside the £100 rebate threshold start at £88,001 and rise above £320,000, meaning properties in this range will not receive the £100 energy payment.
Discretionary fund details
The Government has confirmed it will provide an additional £100 million to support households that do not qualify. Individual local councils will determine the eligibility criteria for this discretionary fund to ensure those most in need can access assistance. Details on eligibility and how to apply will be published on local council websites once arrangements are in place.
The Department for Energy Security and Net Zero (DESNZ) stated: "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 be responsible for setting their eligibility criteria for the discretionary fund and making sure it benefits households who most need support. Your local council will make information on eligibility and how you can apply available on their website, once local arrangements are in place.
"If you are unsure, please contact your local council directly. You can check who your local council is by visiting Find your local council."
Further Budget measures
The £100 payment is in addition to other Budget measures aimed at tackling rising energy bills, including scrapping standing charges on gas bills for around 23 million homes, extending the previously announced VAT reduction on electricity bills until July 2027, and reducing the Ofgem annual price cap by around £50 in April 2027.
