Household Energy Payment: £100 for households in England from January 2027

On 28 October 2026, as part of the Autumn Budget, the government announced a new payment to help with energy costs. It is called the Household Energy Payment and is worth £100 per household. According to the Department for Energy Security and Net Zero, bills have risen this year because of the conflict in the Middle East.

Who will get the money

The payment covers households in England that live in a property in council tax bands A to D and are liable for council tax on it. The property must be their main home. The government estimates that up to 20 million households will be eligible. That is estimated to include about 83% of fuel-stressed households in England and 88% of households in the bottom three income deciles.

The department says most households exempt from council tax will be included. Full eligibility criteria are due to be published later. Owners of second homes and empty properties, and households where the resident is not responsible for paying council tax, will not receive the money.

When and how

Payments are due to start from January 2027. People who pay council tax by direct debit and live in bands A to D do not need to do anything, as the money will go straight into their bank account. Other households will be invited by their council to apply.

The government warns that nobody other than your local council should ask you to claim the payment. Only give out personal data if you are sure the council is contacting you. If in doubt, check directly with the council.

Scotland, Wales and Northern Ireland

The scheme applies only in England. Scotland, Wales and Northern Ireland will receive additional funding, and their governments will decide how to use it to provide similar support based on local needs.

Help for people outside bands A to D

The government is providing an extra £100 million for councils to offer discretionary support to households that do not qualify for the £100. Each council will set its own criteria and publish details on its website once local arrangements are ready. People receiving means-tested benefits may also qualify for the £150 Warm Home Discount.

What this means for you

If you live in England in a home in bands A to D and you pay council tax (or are exempt from it), you may receive £100. It is worth checking your band on the government website and making sure your council has up-to-date details. Tenants who are not responsible for council tax, for example where the landlord pays it, are not eligible. Be wary of messages asking for personal data: claims are to be made only through your own council.

Standing charges

The same package also includes a plan to remove standing charges from gas bills. The government has asked the regulator Ofgem to remove them as early as 2027. The costs are to be moved into the unit rate for energy.