What is the household energy payment?
The household energy payment is a one-off £100 payment, announced in the Autumn Budget on 28 October 2026, to help with winter energy bills. According to the government, up to 20 million households in England will be eligible, and the payments are due to start from January 2027.
In his Budget speech the Chancellor, John Healey, described it as a £2.6 billion scheme. The government’s own guide to what the Budget means for energy bills is the source for the rules below, and we have linked it so you can check every detail yourself.
It is worth saying what the household energy payment is not. It does not lower your unit rate or your standing charge, and it does not change what your supplier bills you each month. It is cash in your bank account, not a discount on your tariff.
Who gets the household energy payment?
You qualify for the household energy payment if you are liable for council tax on your home, you live there as your main home, and it sits in council tax bands A to D in England. That is the test the government has set out so far.
The government says this includes most households that are exempt from council tax, with the full eligibility criteria still to be published. If you are in a student-only household, for example, that is one to watch for the final guidance.
Some homes are left out. Second homes and empty properties are not eligible, and neither are households where the householder is not responsible for paying council tax.
Not sure of your band? You can check it on GOV.UK using the Check your Council Tax band service. It is worth doing before the money is due.
The government estimates the household energy payment will reach around 83% of fuel stressed households in England and 88% of households in the bottom three income deciles. Those are the government’s estimates, not ours.
When and how will the household energy payment be paid?
The household energy payment is due to be paid from January 2027, through your local council. How it reaches you depends on how you pay your council tax.
- If you pay council tax by Direct Debit and live in bands A to D, you do not need to do anything. The government says the money will go straight into your bank account.
- If you pay another way, your council will invite you to apply directly, so keep an eye on its website and your post.
- If you are exempt from council tax, details are still to come. The government says it will issue guidance for councils in due course.
There is one more thing to say, and it matters. The government’s guidance says nobody other than your council should get in touch asking you to claim the household energy payment. Only give out personal details if you are certain it is your council contacting you.
If a text, call or email turns up asking you to “claim your £100” through a link, treat it with suspicion. When in doubt, contact your council using the details on its official website, not the ones in the message.
Key takeaways
- The household energy payment is £100 for council tax bands A to D in England, due from January 2027.
- Direct Debit payers should get it automatically. Others will be invited to apply by their council.
- “It covers England only. Scotland, Wales and Northern Ireland get funding, but none has confirmed its own £100 payment yet.
- Only your council should contact you about it. Ignore anyone else.
- It does not change your tariff, so your unit rates and standing charge stay as they are.
What if you do not qualify for the household energy payment?
If your home is in band E or above, or you are outside England, the picture is different. The £100 payment covers England only. The government says Scotland, Wales and Northern Ireland will receive additional funding, and their own governments will decide how to use it. MoneySavingExpert reports the same thing, that funding is being allocated to all three for similar schemes.
That is as far as the published sources go. None of the three governments had set out its own version of the payment in anything we read, so if you live in Scotland, Wales or Northern Ireland, do not plan around £100 landing in January. Watch for an announcement from your own government instead.
For England, the government is also putting an extra £100 million into discretionary support run by local councils. It is meant for households that struggle with energy bills but do not qualify for the £100. Each council will set its own rules, so check your local council’s website once its arrangements are in place.
If you receive means-tested benefits, you may also be eligible for the £150 Warm Home Discount, which is separate from the household energy payment. The government has a Warm Home Discount overview page on GOV.UK where you can check.
Our checklist of energy bill schemes is a handy way to see what else might apply to you this winter.
Does the household energy payment change what you should do about your tariff?
No, the household energy payment is a helping hand, not a reason to stop looking at your deal. Writing after the Budget, Martin Lewis of MoneySavingExpert said the price cap is expected to go up 27% in January. The £100 is meant to soften a rise of that size, not cancel it out.
Treat 27% as the current expectation rather than a number on your bill. It is a forecast, and a steeper one than the 16% that was being talked about earlier in October. Ofgem sets the real figure before the new cap starts.
That is the Do-Nothing Default in action. Your supplier will keep charging whatever your tariff says, whether or not a £100 payment lands in January. A quick check of your own deal is the only part you control.
Our earlier post on the January price cap forecast has the background on how forecasts work, though it was written before the Budget and before the 27% figure. If you are on the price cap, your bill follows it up or down. If you are on a fixed deal, your rates stay the same until it ends, so check your end date.
What you could save by switching depends on your usage, your region and how you pay, so it will vary from home to home. Comparing takes a few minutes, and Roo will do the digging if you let him.
Frequently asked questions about the household energy payment
- How much is the household energy payment?
- It is £100 per eligible household, according to the government. It is a one-off payment, due to start from January 2027.
- Do I need to apply for the household energy payment?
- If you pay council tax by Direct Debit and live in bands A to D, you should not need to. Otherwise your council will invite you to apply.
- Can I get the household energy payment in Scotland, Wales or Northern Ireland?
- Not under this scheme. It covers England only. The government says the three nations will receive additional funding for similar schemes, but none had confirmed its own £100 payment in the sources we read.
- Is the household energy payment taxable?
- The government has not said anything about tax in the guidance we read. Check GOV.UK for the final rules once they are published.
- Can I get the household energy payment if I rent?
- It depends on who is liable for council tax. The government says households where the householder is not responsible for paying council tax are not eligible, so tenants who pay it themselves are the ones to watch.
- Who can contact me about the household energy payment?
- Only your local council. The government says nobody else should get in touch asking you to claim it.
Sources
- GOV.UK, What the Autumn Budget 2026 means for your energy bills, 28 October 2026. The £100 amount, council tax bands A to D, England only, up to 20 million households, payment from January 2027, how Direct Debit and other payers are paid, the exclusions for second homes and empty properties, the 83% and 88% estimates, the £100 million discretionary fund and the warning that only your council should contact you.
- GOV.UK, Budget 2026 speech, 28 October 2026. The £2.6 billion cost of the scheme and the 20 million households figure, in the Chancellor’s own words.
- MoneySavingExpert, Gas standing charges will be scrapped, 28 October 2026. Martin Lewis’s expectation of a 27% price cap rise in January, and that funding is being allocated to Northern Ireland, Scotland and Wales for similar schemes.
Checked 29 October 2026.
