Every English home in council tax bands A to D will receive a one-off £100 payment towards their energy bills this winter, John Healey announced. The money will be issued from January and funded by a tax rise on banks.
Payment Details and Eligibility
Labour said it wanted to give Brits "breathing space" from rising costs. The payment will not be means-tested, meaning high earners will still cash in, and since it is paid in a lump sum, households can choose how to spend it, though the Government said it is to help with energy bills.
However, it is worth noting that most families will still be worse off, as the conflict in Iran continues to push up energy prices. According to consultants Cornwall Insight, energy bills are projected to rise by £276 in January, so even though the £100 is welcome, it will likely not cover extra expenses.
How to Check Your Council Tax Band
The easiest way to check whether you are eligible and find out your council tax band is on the Government's website. It is experiencing technical difficulties due to heightened demand following the announcement, so if you receive a paper council tax bill, you can also check your band on there.
The bands, which are largely criticised as being outdated, are based on the price the property would have sold for on the open market in England on April 1, 1991. Band A would have been worth £40,000 or below, Band B was £40,001 to £52,000, Band C was £52,001 to £68,000, and Band D was £68,001 to £88,000.
Payments Across the UK
While the policy is for England, the Chancellor said funding would also be given to Scotland, Wales and Northern Ireland to make the payment. He urged the devolved Governments to follow suit to "give people of all nations in the UK breathing space on their energy bills this winter".
The Welsh Government said it will also issue a £100 cost-of-living payment to all households in council tax bands A to D. The Scottish Government said it would "seek to replicate" the £100 payment. The Northern Ireland Government does not have the legal authority to make the £100 payments unless it agrees its Budget, which it has not done since the start of this financial year.
Receiving the Payment
If you pay your council tax by direct debit, the money will be paid directly into this bank account from January 2027. If you do not pay council tax because of an exemption, or you pay council tax in cash or by other means, the local authority will also be responsible for issuing the payment.
If you are a student, you may or may not receive the payment depending on where you live. If you live in halls of residence, you will not receive the payment because halls are not in council tax bands A to D. If you are a student living in a rented property, you could receive the payment. However, because you are exempt from council tax, the local authority will also find a way to issue it, as your bank accounts are not linked up. The Government said it would issue guidance to councils on how to do this in due course.
