Chancellor of the Exchequer John Healey has announced that 20 million UK households in council tax bands A to D will receive a one-off £100 energy payment this winter, paid directly into their bank accounts, as part of a £2.6bn scheme to ease financial pressure during the coldest months.
Delivering his first Budget in Parliament on Wednesday afternoon (October 28), Mr Healey said the payment is intended to help families "through to spring" amid rising energy bills.
How the payment works
Council tax bands are determined by the property's value on 1 April 1991. The lower the value, the lower the band, which ranges from A to H in England. Households can check their band on their council tax bill or via the gov.uk tool, which allows users to find their band by entering their postcode or address.
After the announcement, the gov.uk tool crashed under the weight of demand. As of Wednesday afternoon, a message read: "This service may be unavailable due to high volumes of traffic. If you experience any issues, please try again later."
Regional impact
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 payment. However, in a handful of wealthier areas, fewer than half of households will be eligible.
The money will be paid out in January and will apply only to homes in England. Mr Healey said funding would be available for devolved governments in Scotland, Wales and Northern Ireland to apply similar relief to households this winter.
Chancellor's remarks
Speaking 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."
He added: "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."
Mr Healey also called on devolved administrations to "do the same and give people of all nations in the UK breathing space on their energy bills this winter". Additionally, he 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.
