Up to 20 million households in England will receive a £100 payment to help with energy bills this winter, Chancellor John Healey announced in his Budget. The payment targets properties in council tax bands A to D.
Those who pay council tax by direct debit will receive the money directly into their bank account from the start of January. Households can check their council tax band by searching their postcode on the government website or by consulting their paper bill.
Students living in halls will not receive the payment because student accommodation is not assigned council tax bands. Students in private rentals within bands A to D will be eligible, though local authorities will need to arrange payment delivery separately. The same applies to others exempt from council tax or who pay by cash.
The Welsh government confirmed it will make the same £100 payment to eligible households. The Scottish government said it would "seek to replicate" the policy. Northern Ireland's government cannot make the payments without a functioning budget, which it has not agreed since the start of this financial year.
The government will fund the payments through a tax increase on banks. The surcharge on banks' corporation tax will rise from 3% to 6% for 15 months from 1 January 2027 to 31 March 2028.
A typical yearly energy bill is forecast to jump by £276 in January, with some forecasts suggesting increases of around £400, according to consultants Cornwall Insight.