Prime Minister Andy Burnham has confirmed which UK households will receive a new £150 boost to help with rising energy bills. The Government unveiled the measures in the Budget on October 28 to address increasing costs and give families “breathing space” on their bills.
Millions of homes faced a 4% hike to their energy bills from last month as Ofgem’s energy price cap from October 1 took effect. Early forecasts indicate costs will soar by more than £300 from January, with high prices driven by ongoing conflict in the Middle East.
What the £150 boost includes
Relief is on the way in the form of a new £100 household energy payment, which will roll out to eligible households in England from the start of next year. This combines with an extension to the temporary VAT cut on electricity bills until July 1, 2027, meaning some households are on track for a £150 boost towards their energy costs.
Households will qualify for the £100 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. If this is the case, you’ll get the payment automatically if you pay by Direct Debit, but if you don’t, you’ll need to ask your local council for it.
How to claim the payment
Households not paying by Direct Debit will be invited to apply for the £100 by their local council directly. The Government has confirmed no one other than councils should get in touch asking you to claim the rebate.
If you need to claim it, you should only provide your personal information if you’re certain it is your local council contacting you. If you’re unsure if a message is genuine, double check with your council.
Support across the UK
The £100 energy payment scheme only applies in England, but Scotland, Wales and Northern Ireland are being given additional funding, with their governments to decide how best to use it to provide similar support.
As for the VAT cut on electricity bills, this will apply to households in England, Scotland and Wales and will be in force until July 2027. According to the Government, the cut will take around £50 off the Ofgem annual price cap in April 2027.
Confirming up to £150 worth of energy support in a post on LinkedIn, Mr Burnham said: “This is a cost of living announcement. We’re giving the majority of households a £100 payment to help with their energy bills this winter.
“You’re eligible if you’re in Council Tax bands A-D. And, if you pay by Direct Debit, you don’t need to do anything to claim it. It will be paid directly into your bank account. If you don’t pay by Direct Debit, your council will invite you to apply directly.
“We’re also extending the VAT cut on electricity bills, which is another £50 off your annual price cap. I know there’s more to do, but we want to do everything we can to help.”
