Millions to receive £100 Household Energy Payment - eligibility and how it works
The government has announced a new one-off payment to assist with energy bills, alongside plans to scrap gas standing charges, following the latest Budget announcement.
Key points
- Households in England in council tax bands A to D will receive a £100 payment this winter.
- Those who pay council tax by direct debit will receive the payment automatically into their bank accounts.
- The government is also providing funding to devolved nations to support similar schemes in Scotland, Wales, and Northern Ireland.
Chancellor John Healey has announced a new £100 Household Energy Payment as part of his first Budget. The scheme, which is expected to cost £2.6 billion, is designed to help approximately 20 million households in England cope with rising energy bills during the colder months.
The support is specifically targeted at properties within council tax bands A to D. While the government has pledged that most people will receive the money directly into their bank accounts this winter, the process for receiving the funds depends on how households currently pay their council tax.
Who is eligible and how to apply
To be eligible in England, you must live in a property within council tax bands A to D as your main home. The government states this includes most households that are currently exempt from paying council tax, though further details on these specific cases are expected in due course.
If you pay your council tax by direct debit, the rebate will be paid automatically into your bank account. For those who do not use direct debit, local councils will invite you to apply for the payment. Residents are advised to be cautious of scams and only provide information if they are certain they are communicating with their local council.
Future changes to energy bills
Beyond the one-off payment, the government confirmed that gas standing charges are set to be scrapped during 2027, or as soon as possible after that date. These fixed daily fees will be removed and instead added to the unit rate of energy. The Treasury indicated that this move could save approximately 60 per cent of households an average of £45 on their annual bills.
Additionally, the government is extending a temporary VAT cut on domestic electricity, which will now run until July 2027. This measure is estimated to reduce annual bills by approximately £50 based on future price cap forecasts.
What it means for you
- Check your council tax band on the government website to see if your property qualifies for the £100 payment.
- If you do not pay your council tax by direct debit, look out for instructions from your local council on how to submit your bank details for the rebate.
- Be vigilant against fraudulent messages; only interact with your official local council regarding the payment to ensure your personal information remains secure.
Where the reports differ: There is a discrepancy regarding the timing of the £100 payment; the Chancellor announced it for this winter, while one source reports that direct debit customers will receive it starting in January 2027.
Sources
We compared these reports before writing and checked every figure, date and name in this story against them. Read them for the full detail.
- Manchester Evening News: Full details of new £100 energy payment - who is eligible and how to get it (28 Oct)
- BBC News: Healey unveils £100 for energy bills and bank tax in first Budget (28 Oct)
- The Independent: Budget 2026: Millions of UK households to get £100 energy bill payment – check if you’re eligible (28 Oct)
- MoneySavingExpert: Budget 2026: Millions of households in Council Tax bands A-D to get £100 payment next year (28 Oct)
- BBC News: Will I get the £100 energy payment and when will I receive it? (28 Oct)
- The Mirror: 20 million households to get £100 help with winter energy bills, Healey announces in Budget (28 Oct)
- The Guardian: Healey gives households £100 to help navigate ‘global economic storms’ (28 Oct)
- Energy Live News: Households to receive £100 energy payment this winter (28 Oct)
- The Sun: Exact date £100 energy payment will land in millions of bank accounts to help with soaring bills (28 Oct)
Spotted a mistake? Email us. This story is based on the reports above and its facts were checked against them; it is not financial advice.
