The government has confirmed that a one-off £100 Household Energy Payment will be paid into bank accounts from January 2027 to help households with energy costs. The payment is being made available to anyone living in Council Tax bands A to D, rather than being means tested by income.
The money will be sent directly into bank accounts for those who pay council tax by direct debit. Households that do not pay by direct debit will need to apply to their local council for the payment.
Payment details and eligibility
In a letter issued by the Local Taxation Division of the Ministry of Housing, Communities and Local Government, the government said: "The government recognises the impact of rising energy costs on households across the UK. That is why, alongside a wider package of measures to support households with energy bills and the cost of living, the government has announced it will be providing a £100 Household Energy Payment for households in council tax bands A to D. This is a one-off payment for this financial year. The core scheme is targeted at properties occupied as a sole or main residence."
The letter added: "Delivering support through the council tax system will enable the payment to reach over 20 million households in England this winter. The government recognises that some of those not eligible may still require support. This is why the government is also providing councils with a £100 million discretionary fund to provide further support to households most acutely impact by rising energy bills, some of which are in council tax bands above A to D. Councils are best placed to identify and support vulnerable households in their area, which is why they have been given this flexibility."
Implementation timeline
The government said it will shortly publish detailed guidance on the delivery of the Household Energy Payment, covering eligibility criteria, payment arrangements, monitoring and assurance requirements, and expectations of the discretionary fund.
The letter stated: "Councils are expected to begin making payments from January 2027, with scheme funding provided in advance. There will be a reconciliation process following scheme delivery to ensure councils are funded for eligible payments. Further detail will be set out in guidance."
The government also said: "We recognise that councils will need to begin preparing for delivery quickly. The department will work closely with the sector over the coming weeks as detailed guidance and delivery arrangements are finalised."
