The UK government has set out details of the new energy payment from the Budget announced on 28 October. It is the Household Energy Payment – a one-off £100 for households in England.
The payment will cover homes in Council Tax bands A to D. According to the government, up to 20 million households could benefit. That is 83% of households in England that struggle to pay for energy, and 88% of households on the lowest incomes.
Payments will start in January 2027. You must pay Council Tax on a flat or house in band A–D and live there as your main home. Most homes exempt from Council Tax will also be included. The government will publish the full rules later.
Second homes, empty properties and homes where the resident is not responsible for Council Tax will not receive the payment.
If you pay Council Tax by Direct Debit, you do not need to do anything – the money will go into your account. Everyone else will be invited by their council to apply.
Scotland, Wales and Northern Ireland will receive extra funding and will decide themselves how to use it. For homes outside bands A–D, the government is giving councils £100m for support under their own rules. People on means-tested benefits may also get £150 from the Warm Home Discount.
The government is also promising help with energy debts built up during the 2022–2024 crisis for people on benefits, disabled people and pensioners. Ofgem is due to set out details of the Debt Relief Scheme shortly.
What it means for you
If your flat or house in England is in band A–D, you will most likely get £100. For tenants, what matters is who pays Council Tax. If you pay it yourself by Direct Debit, the money will arrive automatically. If Council Tax is included in your rent, you may miss out.
Our assessment
This is certain but modest help. £100 is less than a month’s winter bill in many homes. The most important point is the government’s warning: only your council will contact you about the payment. We expect fake texts and emails ‘about £100’, as with previous support payments.
What to do
- Check your home’s Council Tax band: gov.uk/council-tax-bands.
- If you can, set up a Direct Debit for Council Tax with your council.
- Do not give your bank details in response to a text or email ‘about £100’. Forward suspicious messages to 7726 (text) or [email protected].
- Check whether you qualify for the Warm Home Discount: gov.uk/the-warm-home-discount-scheme.
More on this: Budget 2026: minimum wage, £100 for energy and higher taxes.
Source: GOV.UK – Department for Energy Security and Net Zero (28 October 2026).
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