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 apply to the large majority of families living in properties classed in council tax bands A-D.
Regional eligibility in the North East
In almost every borough in the North East, over 90% of households qualify for the payment. A total of 892,130 homes in the region are expected to receive the £100.
South Tyneside has the highest percentage of eligible households, standing at 95.9%. This was closely followed by Sunderland with 95.7% and Gateshead with 95.6%. Northumberland has the lowest percentage of eligible households in the region, at 84.6%, and was the only area in the region which did not exceed 90%.
National breakdown and payment details
Across the country, in four local authority areas - Hull, Stoke-on-Trent, Sandwell and Barking & Dagenham in London - more than 97% 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, but 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.
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. The Chancellor said 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.
Criticism and broader energy measures
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. But 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. 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."
