By Sohaib Shams
UK Chancellor John Healey has announced a £100 energy bill payment for around 20 million households in council tax bands A to D, as part of his Autumn Budget.
The "Household Energy Payment" will be paid directly into bank accounts this winter, costing the government £2.6 billion. Healey said the measure aims to give families "breathing space" amid rising energy bills driven by global uncertainties, including the war in Iran.
Eligibility and Funding
Only households in council tax bands A to D qualify, covering about 80% of fuel-stressed households. The government will fund the scheme by increasing the Bank Surcharge from 5% to 8% for 15 months starting January.
Healey also confirmed funding for devolved governments in Scotland, Wales, and Northern Ireland to adopt similar measures.
Standing Charges to Be Scrapped
Alongside the payment, the Chancellor said gas standing charges will be scrapped from next year, with Ofgem asked to remove them for around 23 million homes by 2027. Fixed costs will shift to unit rates, potentially saving 60% of households an average of £45 annually.
The government will also provide £100 million more to councils for crisis and housing support.
Checking Eligibility
Households can check their council tax band via the government's postcode checker, though the service experienced temporary issues after the announcement. The banding system, based on 1991 valuations, has faced criticism for not reflecting current property prices.
