By Sohaib Shams
Around 20 million households in England will receive a £100 payment in January 2027 to help offset rising energy costs, Chancellor John Healey announced in a “cost of living Budget” delivered on Wednesday.
Payment details and eligibility
The money will be deposited directly into bank accounts by local councils. Households that pay council tax by direct debit will receive the payment automatically, while those using other payment methods will need to provide bank details. Eligibility is limited to properties in council tax bands A to D, which can be checked on the government website or on paper bills. Students living in halls of residence are excluded because such accommodation falls outside those bands, but students in private lets within bands A to D will qualify. Other residents who do not pay council tax but live in qualifying properties are also eligible, though distribution details for those groups remain to be confirmed.
Impact amid rising energy costs
The payment arrives as the energy price cap is forecast to increase by more than 25 per cent in January, raising the typical annual bill by an estimated £276, according to Cornwall Insights. While the £100 provides some relief, it will not cover the full increase. The Budget also extended a VAT cut on electricity bills and raised the minimum wage by 3.9 per cent for 2.3 million workers.
Devolved nations' responses
Funding will be provided to Wales, Scotland and Northern Ireland to design similar schemes. The Welsh government has confirmed it will mirror the English payment for eligible households in bands A to D. The Scottish government is considering replication, while Northern Ireland would need to approve the measure in its own budget.
