Millions of households in council tax bands A, B, C or D will receive a £100 "Household Energy Payment" paid directly into their bank accounts this winter, following an announcement in today's Autumn Budget (October 28). The cash is intended to help with rising energy bills amid global turmoil and soaring wholesale prices.
Although the policy is linked to Prime Minister Andy Burnham, the announcement to Parliament was made by Chancellor John Healey. The i Paper reported that Healey told MPs: "I know that with the conflict in the Middle East, rising energy bills are a real worry," as he confirmed a £2.6 billion package covering around 20 million households.
Who qualifies for the payment
Under the plans, the £100 will go to households in council tax bands A, B, C or D. In England, this is expected to cover roughly 20 million households, with payments delivered through the council tax system, the BBC reported.
Scotland, Wales and Northern Ireland are also in line for funding via devolved government allocations, with Healey urging them to "do the same". Forecasters have warned the Ofgem price cap could jump again, with typical dual-fuel bills projected to rise toward £1,999 to more than £2,192 early next year, the BBC reported.
How the payment is funded
The £2.6 billion cost will be covered by a temporary bank tax rise. The surcharge on banks' corporation tax is set to increase from 3% to 6% for 15 months from January 1, 2027, as per the BBC.
How to claim the £100
Most households won't need to do anything. If you pay council tax by Direct Debit, the £100 is expected to land automatically in the same bank account your council already holds. If you don't pay by Direct Debit (for example cash, cheque or bank transfer), your council will contact you with steps to provide bank details securely or access the money through another route, such as a voucher or online portal.
Homes in council tax bands E to H won't get the automatic £100. However, councils will have access to an extra £100 million pot to support low-income or vulnerable households who miss out.
