Households in England that do not qualify for the new £100 Household Energy Payment may instead receive help through a £100 million discretionary fund announced alongside the payment.
Budget measure targets Council Tax bands A to D
Chancellor John Healey unveiled the measures on Wednesday, October 28, to ease high energy costs and give households “breathing space” on their bills. The Budget introduced a £100 payment for households in England in Council Tax bands A to D, with around 20 million households expected to be eligible. The payment is due to roll out in January 2027.
The Government has confirmed that households will 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. Homes in bands E to H are set to miss out on the payment.
Discretionary fund for excluded households
Council Tax bands in England are based on a property’s market value as of April 1, 1991, rather than its current value. Band A is the lowest value band, covering homes worth up to £40,000, while Band D, the standard baseline used by local authorities to calculate proportions, includes properties valued between £68,001 and £88,000.
Bands that fall outside the rebate limit begin at £88,001 and go up to more than £320,000, meaning properties in that range will not be eligible for the £100 payment. However, the Government has confirmed it will provide an additional £100 million in funding to support households that do not qualify.
Local councils will set the eligibility criteria for the discretionary fund to ensure those who need help can get support. Information on eligibility and how to apply is set to be published on local council websites once arrangements are in place.
DESNZ guidance on applying
The Department for Energy Security and Net Zero (DESNZ) said: “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.”
The £100 payment comes alongside other Budget measures to tackle rising energy bills, including scrapping standing charges on gas bills for around 23 million homes and extending the previously announced VAT cut on electricity bills until July 2027, which is set to take around £50 off the Ofgem annual price cap in April 2027.
