Millions of households are set to receive a new £100 energy payment this winter following an announcement in Chancellor John Healey’s Autumn Budget on Wednesday (28 October).
The Chancellor confirmed that around 20 million households in council tax bands A to D will receive the payment, with money transferred directly into eligible households’ bank accounts.
The £2.6 billion scheme has been introduced to help households manage rising energy bills during the colder months, when heating demand typically increases.
Announcing the measure, Healey said the support would help take pressure off households during winter and provide financial breathing space through to spring.
The announcement comes amid continued concerns about energy affordability, with Ofgem’s October price cap standing at £1,723 a year for a typical household paying by direct debit.
Who qualifies for the £100 energy payment?
According to the Chancellor’s announcement, households living in council tax bands A, B, C and D will qualify for the new payment.
The payment is expected to benefit approximately 20 million households, although the government has not yet published detailed guidance outlining the full eligibility criteria.
Households can check their property’s council tax band through the government’s official website:
https://www.gov.uk/council-
The Chancellor also confirmed that the Scottish, Welsh and Northern Irish governments will receive a share of the funding, encouraging devolved administrations to introduce equivalent support.
When will the £100 energy payment arrive?
The Chancellor confirmed that the payment will be made this winter, with funds transferred directly into people’s bank accounts.
However, an exact payment date has not yet been confirmed.
Further government guidance is expected to clarify how payments will be administered and whether eligible households will need to take any action.
Energy expert explains how households can manage winter bills
Gordon Wallis, spokesperson for Your NRG, said:
“Energy bills remain a significant concern for households, particularly as we head into the coldest months of the year when heating costs can increase considerably.
“The announcement of a £100 payment will be welcome news for millions of people, especially those already struggling to balance their household budgets.
“However, households should remember that the payment is designed to provide additional support rather than cover their entire winter energy costs.
“Simple changes around the home can help households manage their consumption. Using heating controls effectively, reducing draughts around windows and doors, and making sure radiators aren’t blocked by furniture can all help prevent unnecessary energy use.
“It’s also worth reviewing your current energy tariff and checking whether you’re eligible for additional assistance, such as the Warm Home Discount.
“With energy prices remaining unpredictable, understanding how much energy your home uses and what support is available can make a real difference when planning for the months ahead.”
What other energy bill support is available?
The new £100 payment follows a number of measures designed to reduce household energy costs.
The government has already introduced a temporary reduction in VAT on domestic electricity bills from 5% to 0%, with the Chancellor now announcing an extension until July 2027.
Meanwhile, approximately six million households are eligible for the £150 Warm Home Discount this winter, providing additional assistance to qualifying billpayers.
Households concerned about rising bills are encouraged to contact their energy supplier to discuss available support and affordable payment arrangements.
