The Government has confirmed that automatic £100 payments will be paid into the bank accounts of around 20 million households in England from January 2027. The money comes from a new Household Energy Payment designed to help with rising energy costs.
The payment was announced by Chancellor John Healey during his first Budget speech on Wednesday, October 28. He pledged to give households “immediate breathing space” from the rising cost of living.
Eligibility and payment details
The Department for Energy Security and Net Zero (DESNZ) has confirmed that up to 20 million households in England will be eligible, including an estimated 83% of fuel-stressed households in England and 88% of households in the bottom three income deciles.
Households qualify 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 includes most households exempt from council tax, but second homes, empty properties, and households where the householder is not responsible for paying council tax will not be eligible.
How the payment will be made
According to DESNZ, households that pay by direct debit and live in bands A to D do not need to do anything, and the £100 rebate will be paid directly into their bank account from January 2027. For households that do not pay by direct debit, the local council will invite them to apply for the rebate directly.
DESNZ 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.”
Discretionary support and devolved funding
For households not in bands A to D, DESNZ is providing an additional £100 million for local authorities to offer “discretionary support” to those not eligible for the £100 rebate. Information on eligibility and how to apply will be published on local council websites once arrangements are in place.
The Chancellor also announced additional funding for devolved administrations in Scotland, Wales and Northern Ireland, with their governments deciding how best to provide it. He called on them to “do the same and give people of all nations in the UK breathing space on their energy bills this winter.”
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. 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 through to the spring.”
