More than 20 million households in England will receive a £100 payment towards their winter fuel bills, under a scheme announced in the Budget by Chancellor John Healey.
The payments will go to the large majority of families living in properties classed in council tax bands A to D. In four local authority areas — Hull, Stoke-on-Trent, Sandwell and Barking & Dagenham in London — more than 97 per cent of households will receive the payments. But in a handful of wealthier areas fewer than half of households will be eligible.
The money will be paid out in January and will only apply to homes in England. Mr Healey said funding would be available for the devolved governments in Scotland, Wales and Northern Ireland to apply similar relief to households this winter.
Payment details and impact
The payment, to be paid directly to the bank accounts of households in council tax bands A to D at a cost of £2.6 billion, would give “breathing space” on energy bills, the Chancellor said. Mr Healey also announced that the VAT cut on electricity bills is to be extended to July, and gas standing charges are to be shifted to unit rates, with similar reforms to follow for electricity bills.
Critics have said the £100 payment will not provide enough relief against the rise in energy bills predicted for January. Ofgem’s price cap rose by 3.6% to £1,723 for a typical household on October 1, and a further rise of around 22% is forecast in January.
Reaction from campaigners
Simon Francis, co-ordinator of the End Fuel Poverty Coalition, said the payment will “barely dent” the predicted rise households face in January. He added: “Because it is paid directly into household accounts in England, it may not even be spent on staying warm this winter.”
Citizens Advice chief executive Dame Clare Moriarty said: “To make a real difference now and beyond, the Government must go further, ensuring support is targeted and reaches those with the greatest energy needs, including families with children and disabled people.”
Local breakdown
An interactive map allows households to check how many homes in their area will receive the £100 payments. The list of council areas shows the number of households in bands A-D, with Kingston upon Hull leading at 123,670 (98.5%), followed by Stoke-on-Trent at 117,160 (97.7%), Sandwell at 133,250 (97.3%), and Barking and Dagenham at 79,870 (97.3%).
At the lower end, the City of London has 1,990 households (24.7%), Kensington and Chelsea 28,390 (31.7%), and Westminster 46,850 (35.4%). After the announcement was made in the Commons, the government’s tax service website crashed under the weight of demand from households trying to find out their property council tax band.
