Short answer
Households in England in Council Tax bands A to D will receive a £100 Household Energy Payment from January 2027. It is paid directly into bank accounts through the council tax system, reaching up to 20 million households. Scotland, Wales and Northern Ireland receive funding for their own decisions.
Who qualifies
The £2.6 billion Household Energy Payment covers households in England in Council Tax bands A–D. Budget 2026
You can find your Council Tax band on your bill or on GOV.UK's council tax band checker.
How and when it's paid
Payments start from January 2027 and are delivered through the council tax system by local councils. Watch for official information from your council.
Be wary of messages asking for bank details to 'claim' the payment — scammers often copy new government schemes. Check with your council directly.
Scotland, Wales and Northern Ireland
Devolved governments receive their share of funding through the Barnett formula and decide how to support households themselves.
Other energy changes in the Budget
0% VAT on domestic electricity is extended to July 2027, expected to take about £50 off the annual price cap from April 2027.
The government plans to remove gas standing charges by the end of 2027 or as soon as possible afterwards.
An extra £100 million goes to councils in England for targeted help for households hit hardest by rising bills.
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Questions
Questions people also ask
Do I need to apply for the £100 energy payment?
The Budget says it will be paid directly through the council tax system. Follow official information from your local council and never give bank details to unsolicited messages.
I'm in Council Tax band E. Do I qualify?
No. The payment is for households in bands A to D in England. Your council may offer separate targeted support.
Does the £100 payment apply in Scotland or Wales?
Not automatically. The devolved governments receive funding and decide their own support.
When will I get the energy payment?
From January 2027.