Around 20 million households across the UK are set to receive a £100 payment from the government this winter to help with energy bills, Chancellor John Healey announced in his Budget.
The support, called the Household Energy Payment, will go to households in council tax bands A to D. The scheme is expected to cost £2.6 billion.
Who is eligible for the £100 payment?
The payments will be for households in England in council tax bands A to D, with around 20 million households set to benefit. The government said around 80 per cent of households in England are due to get the payment.
Devolved governments in Scotland, Wales and Northern Ireland will receive their share of the funding via the Barnett formula so that they can provide similar support.
How and when is the money paid?
The support is being provided via the Council Tax system. Anyone who is eligible for the £100 will receive the money directly into their bank account this winter, the chancellor announced. The payments will be made from January 2027.
Speaking during his Budget speech, Mr 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 though to the spring."
Impact on households
Mr Healey said money would be given to devolved administrations and called on them to "do the same and give people of all nations of the UK breathing space on their energy bills this winter".
The change will affect a predicted 91.24 per cent of Greater Manchester homes that fall within the A to D bands.
