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Up to 20 million households in England will receive a £100 payment to assist with winter energy bills, Chancellor John Healey announced in his Budget. The policy aims to provide financial relief as energy costs rise, though analysts note typical bills are still forecast to increase significantly.
Eligibility and Council Tax Bands
Residents living in properties categorized within council tax bands A to D in England are eligible for the payment. Homeowners and tenants can check their council tax band by entering their postcode using online search tools or by reviewing their paper council tax bills.
For individuals residing in Scotland, Wales, or Northern Ireland, the chancellor stated that corresponding funding will be allocated to the devolved administrations. The Welsh government confirmed it will provide a £100 cost-of-living payment to households in bands A to D, while the Scottish government stated it will seek to replicate the measure. The Northern Irish government currently lacks the legal authority to issue the payments unless it agrees its budget, which remains unfinalized.
Payment Distribution and Exemptions
Households that pay council tax via direct debit will receive the £100 directly into their bank accounts starting in January. Students residing in university halls will not qualify because halls are exempt from council tax bands A to D, whereas students living in private rented properties within those bands are eligible.
Local authorities will establish alternative distribution methods for students and individuals who are exempt from council tax or who pay by cash rather than direct debit. The government stated it will issue guidance to local councils on how to handle these payments in due course.
Funding and Bill Context
The government reported that the £100 payments will be funded through a tax increase on banks, raising the surcharge on banks’ corporation tax from 3% to 6% for a 15-month period between 1 January 2027 and 31 March 2028. While the government stated the funds are intended to help with energy costs, the money will be deposited directly into bank accounts, leaving recipients able to spend it elsewhere.
Energy consultants Cornwall Insight previously forecast that typical yearly energy bills would jump by £276 in January, with more recent forecasts suggesting an increase of around £400 to £2,100, meaning many residents will still feel financially squeezed despite the government support.
