A new household energy payment is among the measures announced in the government’s Budget. This guide explains what the change could mean for households, where to find the official guidance, and what to look out for as more details are confirmed.
Change at a glance
A £100 one-off Household Energy Payment is planned for eligible homes in England from January 2027.
When
January 2027
Payments are expected to begin during January. The government has not yet confirmed the exact date or whether every council will pay on the same day.
Payment
£100
A single £100 payment towards household energy costs, not a monthly benefit. It is separate from the temporary cut to VAT on domestic electricity bills.
Where
England
For eligible main homes in council tax bands A, B, C or D in England. Being in one of these bands does not automatically guarantee payment.
Who is affected?
The core scheme is for eligible households in England whose main home is in council tax band A, B, C or D and where the resident is liable for council tax. Second homes and empty properties are excluded, as are residents who are not responsible for the council tax bill. The government expects most council-tax-exempt households to be included, but the detailed rules are still to be published, so a band A to D property alone does not guarantee payment.
What do you need to do?
If you pay your council tax by direct debit and meet the final eligibility rules, the payment is expected to be sent to your bank account automatically. If you do not pay by direct debit, your council is expected to explain how eligible residents can apply or provide payment details. You do not need to use unofficial websites or pay a fee to claim. Wait for instructions from your local council, and be cautious of unexpected texts, emails or calls asking for bank details or other personal information.
Last checked: 29 October 2026. The exact payment date and full scheme rules are still to be confirmed.
What the government has announced
The Household Energy Payment is part of the government’s wider package of measures to help households with energy costs. It is a one-off £100 payment for eligible homes in council tax bands A to D in England, with councils expected to begin paying it from January 2027. The government estimates that the scheme will reach up to 20 million households.
The payment is separate from the temporary VAT cut on domestic electricity bills, which has been extended until July 2027. The £100 payment is delivered through the council tax system, while the VAT cut reduces the VAT charged on qualifying electricity supplies. The government has also set aside £100 million for councils in England to provide additional targeted help to households most affected by high energy bills.
Eligibility for the £100 payment
The scheme is for eligible households in England whose main home is in council tax band A, B, C or D. To qualify under the announced rules, you must be liable for council tax on the property and live there as your main home. The government expects the payment to reach up to 20 million households.
Second homes and empty properties are not eligible, and households where the resident is not responsible for paying council tax are also excluded. Most households that are exempt from council tax are expected to be included, but the full eligibility criteria have not yet been published. Being in bands A to D does not by itself guarantee a payment.
Checking your council tax band
You can check the band for a home in England using the official GOV.UK council tax band checker. Search for the property and check the band recorded for that address. It is the property’s council tax band, rather than the amount you happen to pay each month, that matters for the announced scheme. Remember that being in bands A to D does not automatically guarantee a payment, because the full eligibility rules have not yet been published.
Payment arrangements for eligible households
The government says eligible households that pay council tax by direct debit will not need to apply. The payment is expected to be paid directly into the bank account used for the direct debit.
If you do not pay council tax by direct debit, your council is expected to invite you to apply. Local arrangements and the full scheme rules are still being set out, so check your council’s official website when further information is published.
The government has specifically warned that nobody other than your council should contact you to ask you to claim the payment. Do not give personal or bank details in response to an unexpected message. Contact your council using details you find independently if you are unsure a message is genuine.
Support for households outside council tax bands A to D
Homes in bands E to H are outside the stated core £100 payment scheme. However, that does not necessarily mean there will be no help available.
The government has set aside another £100 million for councils in England to help households badly affected by high energy bills, including some who do not qualify for the £100 payment. Councils will set their own eligibility criteria and explain how to apply on their websites once local arrangements are in place. If you need help, check your council’s official website or contact the council directly. You can use the government’s Find your local council service to locate the right website.
This £100 million fund is separate from the £100 payment. It is not an extra £100 payment for every household in a higher council tax band, and support will depend on your council’s local scheme.
If you receive means-tested benefits, you may also be eligible for the separate Warm Home Discount, worth £150 towards energy costs for eligible households. Check the official scheme guidance for the current eligibility rules.
How the £100 energy payment applies across the UK
The £100 Household Energy Payment is a one-off payment for eligible households in England whose main home is in council tax bands A to D, with payments expected from January 2027. Wales has confirmed a £100 payment for households in bands A to D, and Scotland has confirmed that households will benefit from a one-off £100 energy payment. Northern Ireland has received funding for comparable support, but its specific arrangements have not yet been confirmed. This guide explains the English scheme and summarises what has been announced elsewhere in the UK. The Budget allocates funding to the devolved governments, but each nation’s scheme and delivery arrangements need to be checked separately. The core scheme described in detail below applies to England. Wales and Scotland have confirmed similar £100 support, while Northern Ireland’s specific arrangements remain subject to confirmation. The comparison below separates what each government has announced from delivery details that are still outstanding.
£100 energy payment: the UK nations at a glance
England
£100 for eligible households in council tax bands A to D, with payments expected from January 2027. Full delivery guidance is still to come.
Confirmed scheme
Wales
The Welsh Government has confirmed a £100 cost-of-living payment for households in council tax bands A to D. Further delivery details are awaited.
Scotland
The Scottish Government has confirmed that households in Scotland will benefit from the one-off £100 energy payment. Further details, including how the support will be delivered, are expected as part of the Scottish Budget on 3 December 2026.
Northern Ireland
The UK Budget provides funding for the Northern Ireland Executive to provide comparable support, but the specific arrangements for a £100 payment have not yet been confirmed in the official sources checked for this article. Separately, the Budget confirms extended VAT relief on domestic electricity in Northern Ireland from April 2027. This is different from a direct £100 payment and should not be confused with one.
Important: the English council tax rules and payment process do not automatically apply in the other nations. Check the linked official updates for changes to eligibility and delivery.
How the payment differs from the electricity VAT cut
No. These are two separate Budget measures. The Household Energy Payment is a one-off £100 payment delivered through the council tax system for eligible households in England. The electricity VAT measure is a temporary reduction in VAT on qualifying domestic electricity supplies. It is applied to qualifying energy charges rather than paid into your bank account.
Read our guide to the electricity VAT cut and its extension to July 2027 for details of that separate change.
Payment timing
The government says payments are expected to start from January 2027, but no exact day has been announced. There is also no confirmed single payment date for every council, so the money may not arrive on 1 January or reach every eligible household at the same time. Councils are awaiting detailed delivery guidance, and their local arrangements will determine how payments and applications are handled. Check your council’s official website for updates as January approaches.
Steps to take before January 2027
Check your council tax band using the official GOV.UK service, then keep an eye on your local council’s website for details about payment dates and how the scheme will operate in your area. If you do not pay council tax by direct debit, wait for your council to publish the application process rather than relying on unofficial claim forms or links. The full eligibility rules are still to come, so treat the current information as an outline of the announced scheme rather than a guarantee that you will receive the payment.
If energy bills are difficult to manage, you do not need to wait until January to look for other support. Check whether you qualify for the Warm Home Discount or whether your council offers help for households facing high energy costs. The rules for these schemes are separate from the £100 payment.
HOUSEHOLD ENERGY PAYMENT FAQs
Frequently asked questions
Quick answers about the £100 Household Energy Payment.
Can I set up a council tax direct debit now?
The announced plan is for eligible households that pay council tax by direct debit to receive the payment automatically. However, setting up a direct debit does not by itself guarantee eligibility or a payment. If you do not currently pay by direct debit, check your council’s official guidance before making changes, as the full delivery arrangements are still being finalised.
When will the full eligibility rules be published?
The government says detailed guidance will be published shortly, but it has not given an exact publication date. The guidance is expected to explain the full eligibility criteria and payment arrangements. We will update this guide when the details are confirmed.
Will I get the payment if I live in a band E to H property?
Band E to H properties are outside the core £100 payment scheme. You may still be able to get help through your council’s separate discretionary fund, depending on local eligibility rules.
Where can I find updates for my area?
Check your local council’s official website for payment dates and application instructions. If you are unsure which council covers your address, use the government’s Find your local council service. Do not rely on unofficial claim forms or links sent in unexpected messages.
How can I avoid payment scams?
The government says only your council should contact you to ask you to claim the payment. Do not share personal or bank details in response to unexpected messages. If unsure, contact your council using details from its official website.