Prime Minister Andy Burnham has confirmed that £100 energy payments for 20 million households across the UK will land in bank accounts in January. The measure, announced by Chancellor John Healey in the Budget this week, is designed to help households ahead of an expected surge in energy bills this winter.
The payment will be made to households in council tax bands A to D, at a cost of £2.6 billion. Four groups of people were yesterday confirmed not to be eligible for the payment, including second homes.
Prime Minister Defends Support as 'Real Help'
Following the announcements on Wednesday, Mr Burnham was forced to defend the £100 support payment as “real help” when people “need it most” amid criticism it will barely dent soaring bills. Campaigners and think tanks have described it as badly targeted and too small to protect households from the energy costs rise predicted for January.
The left-leaning Resolution Foundation think tank said it was “a terribly, badly targeted kind of support” as there “are lots of people who are doing OK who probably can manage without that money, and probably need to manage without that money if we’re going to support the people we need to support at a time when we don’t have a lot of money to throw around in the first place”.
But the Prime Minister defended the decision to extend the support to “the vast majority” of Britons and confirmed when the money would be landing in people's accounts.
Government Outlines Additional Cost of Living Measures
Asked about the criticism of the measure during a Thursday visit to a Rolls-Royce factory in Derby, Mr Burnham said: “We’re very focused on giving families as much breathing space as we possibly can.
“Often with a budget, people would have come home from work and said, ‘Well, this doesn’t help me. It’s always for somebody else’.
“Well, if you’re going to give that support to people in council tax bands A to D, that gets to the vast majority of the country. It is help, real help that will land in people’s bank accounts in January.”
He also said ministers were “constantly” working to ease the cost of living as he pointed to a string of other announcements. He said: “We’re doing more beyond that.
“We’ve taken VAT off electricity bills, which will help people; £2 cap on bus fares next year and we’re going to take standing charges off gas bills.
“So, the idea that I’m building out here is we just do a step here, a step there, constantly doing what we can to take pressure off families. But 20 million British households getting support with that council tax rebate early in the new year, I think it will really help people just when they need it most.”
Energy Bills Forecast to Reach £1,750
Chancellor Healey announced in Wednesday’s Budget that the VAT cut on electricity bills was to be extended to July, and gas standing charges are to be shifted to unit rates, with similar reforms to follow for electricity bills.
Ofgem’s price cap rose by 3.6% to £1,723 for a typical household on October 1, with a further rise of about 22% forecast in January. The Resolution Foundation said the Budget’s policies would not prevent energy bills from jumping above levels seen during the last energy shock.
Typical annual energy bills are expected to reach £1,750 after Government support in 2026-27. That compares with £1,685 paid during the 2022-23 energy price jump after Russia invaded Ukraine.
The End Fuel Poverty Coalition said the £100 payment would “barely dent” the predicted rise households face in January and that “because it is paid directly into household accounts in England, it may not even be spent on staying warm this winter”.
Questioned on the method chosen for distributing the money, Mr Burnham’s spokesman told reporters: “We’re offering support for households struggling with their energy bills through the council tax system because it’s the quickest way to get money to the families who need it.”
How to Get the Payment
If you pay council tax by direct debit and live in bands A to D, you don’t need to do anything as the rebate will be paid directly into your bank account. If you don’t pay by direct debit, your council will invite you to apply for the rebate directly.
The government warns: "Nobody other than your council should get in touch asking you to claim the rebate. Only give out your personal information if you are certain it is your local council contacting you. If you’re unsure whether a message is genuine, double check with your council."
The payment will be automatic and there is an established system for identifying eligible households, according to officials.
