Up to 20 million households in England are eligible for a one-off £100 payment to help with energy bills from January, but an estimated 830,000 low-income households may miss out. Chancellor John Healey announced the Household Energy Payment in the Budget, covering properties in Council Tax bands A to D.
The Government said the payment will reach an estimated 83% of those experiencing fuel stress and 88% of households in the lowest income groups.
Who is eligible for the £100 payment?
To qualify, you must be liable for Council Tax and live in the property as your main home, with the home in bands A to D. Second homes, empty properties, and households where the householder is not responsible for paying Council Tax will not receive the payment.
To check which Council Tax band you are in, visit gov.uk/council-tax-bands. There is no need to do anything if you pay by direct debit and live in bands A to D, as the payment will automatically enter your bank account. For those who do not pay by direct debit, the council should invite you to apply.
You should only share your personal details if you are sure your local council is contacting you. Anyone unsure who has been in touch should contact their council.
Support for households in higher bands
For households not in bands A to D, there is a pot totalling £100 million which councils can draw from to provide support at their discretion. Local authorities will set their own eligibility requirements.
The £150 Warm Homes Discount may also be available to those on means-tested benefits.
Concerns that some low-income households will miss out
While the Government estimates 20 million households are in line for the payment, analysis from the Policy in Practice thinktank suggests over 830,000 households on low incomes look set to miss out. It found that 838,000 households currently claiming Council Tax support will not benefit from the extra help despite struggling with rising energy bills in a larger home.
The thinktank argued that using Council Tax bands to determine who receives the payment was an imperfect method, as poorer households can live in properties in higher bands. Analysis shows a low-income family of five or more people is 1.6 times more likely to live in a property in bands E to H compared to an average low-income household.
Direct debit will also be a barrier for some, as poorer households are more likely to pay in other ways, while some will not pay any because they get Council Tax Reduction.
A Policy in Practice spokesperson said: "As we see time and again, requiring separate applications inevitably results in a large number of households missing out."
The thinktank also warned that many low-income households are overdrawn, so a £100 payment will only reduce that debt, not help towards their energy bills.
Policy in Practice's spokesperson said: "Relying on Council Tax bands to deliver energy relief ignores the realities of modern poverty. Many low-income families have no choice but to live in larger, higher-band properties - often multi-generational households pooling resources just to get by. Over 130,000 larger low-income families are set to miss out entirely under this policy. It is essential to identify exactly who is being missed and ensure vital energy relief reaches those in genuine need."
