£100 energy payment for council tax bands A to D in England will be paid from January
Households that pay council tax by direct debit will get the money automatically. Others will be asked by their council to apply.
Up to 20 million households in England will receive a one-off £100 towards their energy costs from January 2027, under a Household Energy Payment announced in Wednesday's Budget.
The payment goes to homes in council tax bands A to D and will be handed out by local councils through the council tax system. The Treasury has set aside £2.6bn for it and says around 80% of households in England will qualify.
Who gets it
To be eligible you must live in a band A to D property in England as your main home and be the person liable for council tax there. The Department for Energy Security and Net Zero (DESNZ) said most households that are exempt from council tax will also be covered, and that the full eligibility rules will be published later.
Second homes and empty properties do not qualify. Nor do households where the person living there is not responsible for the council tax bill.
You can check your band on the GOV.UK council tax band checker.
How it will be paid
If you pay council tax by direct debit: you do not need to do anything. The £100 will go straight into your bank account.
If you pay another way: your council will contact you and invite you to apply.
DESNZ warned that only your own council should get in touch about the payment. If you are unsure whether a message about it is genuine, check with the council.
If you are in band E or above
The Budget includes a separate £100m for councils in England to help households that are struggling with energy bills but are not eligible for the £100. Each council will set its own rules for this fund and publish them on its website once its scheme is ready.
Households on means-tested benefits may also qualify for the £150 Warm Home Discount, which is a different scheme.
Scotland, Wales and Northern Ireland
The Household Energy Payment applies only in England. The governments in Edinburgh, Cardiff and Belfast will receive extra funding through the Barnett formula and will decide how to use it.
Other changes to bills
The Budget also extends the 0% VAT rate on household electricity, which began on 1 October, until 1 July 2027. The Treasury expects this to take around £50 off the annual Ofgem price cap from April 2027.
To help pay for the support, the surcharge that banks pay on top of corporation tax will rise from 3% to 6% from 1 January 2027 and end on 31 March 2028.
