By Islam El-Sakka
Up to 20 million households in England will receive a £100 payment to help with energy bills this winter, Chancellor John Healey announced in his Budget. The one-off support comes as typical annual energy bills are forecast to rise by £276 in January, with some estimates suggesting a £400 increase to around £2,100.
Eligibility and Coverage
The payment will go to households in council tax bands A to D in England. Residents can check their band via the government's online postcode search or on their paper council tax bill. The government says the money will be paid directly into the bank account used for council tax direct debits from the start of January.
Devolved Nations' Responses
Funding will be provided to Scotland, Wales and Northern Ireland to make equivalent payments. The Welsh government has confirmed a £100 cost-of-living payment for households in bands A to D. The Scottish government said it would seek to replicate the scheme. Northern Ireland cannot make the payments unless it agrees a budget, which it has not done since the start of the financial year.
Payment Delivery for Exempt Groups
Students in halls of residence are not eligible because halls fall outside bands A to D. However, students living in private rented properties within those bands will receive the payment, with local authorities responsible for distribution. The same applies to households exempt from council tax or those who pay by cash; councils will receive guidance on how to deliver the funds.
Funding Source
The £100 payments will be financed by a temporary increase in the bank corporation tax surcharge from 3% to 6%. The higher rate will apply for 15 months from 1 January 2027 to 31 March 2028.
