Households in Council Tax bands A to D must take action to receive the £100 Household Energy Payment if they do not pay by direct debit, Prime Minister Andy Burnham has confirmed. The payment, announced in the Autumn Budget, is due to reach eligible households from January 2027.
Around 20 million households across England are expected to qualify for the payment, which offers financial help as energy costs continue to put pressure on family finances. Most people will receive the money directly into their bank account this winter, the chancellor announced last week.
Who Receives the Payment Automatically?
The government said: "If you pay by direct debit and live in bands A to D, you don’t need to do anything – the rebate will be paid directly into your bank account."
However, those who do not pay by direct debit will need to respond to their council to confirm they will receive the £100 payment and then apply. "If you don’t pay by direct debit, your council will invite you to apply for the rebate directly," the government said.
Scam Warning for Residents
The government stressed that people should only be approached about the payment by their local authority. "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," it said.
Mr Burnham has confirmed that councils will contact eligible residents who need to apply. Anyone contacted should be careful before sharing information and should contact their council directly if unsure whether a request is genuine.
Budget Details and Devolved Funding
Chancellor John Healey confirmed that the £100 payment would benefit households in England, with additional funding being made available to the devolved administrations in Scotland, Wales and Northern Ireland. Their governments will decide how best to use the money to support households in their respective nations.
Calling on the devolved governments to introduce similar support, the Chancellor said: "do the same and give people of all nations in the UK breathing space on their energy bills this winter."
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 through to the spring."
The £100 payment is part of several measures announced in the Budget to reduce energy costs. These include plans to scrap gas standing charges for around 23 million households and extend the previously announced VAT reduction on electricity bills until July 2027. Further details about eligibility and the application process are expected to be published on individual council websites once arrangements have been finalised.
