Households in England who aren’t eligible for a new £100 Household Energy Payment may instead get support through a £100 million bill help scheme.
Chancellor John Healey on Wednesday, October 28, unveiled a series of new measures to ease high energy costs and give households “breathing space” on their bills. The Budget unveiled a new £100 payment which will be awarded households in England in Council Tax bands A to D. Around 20 million households will be eligible for the payment, which is due to rollout in January 2027.
The Government has confirmed that households will qualify if they are liable for council tax on, and live in, a property in Council Tax bands A to D as their main home. But it means homes in Council Tax bands E to H are set to miss out.
Council Tax bands in England are based on what a property’s market value would have been on April 1, 1991, rather than its current value.
Band A is the lowest value band and includes homes valued up to £40,000, while Band D, which is the standard baseline used by local authorities to calculate proportions, includes properties valued between £68,001 to £88,000.
Council Tax bands that fall out of the £100 rebate limit begin at £88,001 up to more than £320,000, meaning properties that fall in this remit won’t be eligible for the £100 energy payment.
But, the Government has confirmed that it will be providing an additional £100 million worth of funding which will be available to support households who don’t qualify.
It will be up to local councils to set the eligibility criteria for this “discretionary fund” to ensure those who need help can get support.
Information on eligibility and how households can apply for support is set to be published on local council websites, once arrangements are in place.
The Department for Energy Security and Net Zero (DESNZ) said: “We know that not all households struggling with their energy bills live in bands A to D.
“That’s why we’re providing an additional £100 million for local authorities to provide discretionary support to these households who are not eligible for the £100 rebate.
“Local councils will be responsible for setting their eligibility criteria for the discretionary fund and making sure it benefits households who most need support. Your local council will make information on eligibility and how you can apply available on their website, once local arrangements are in place.
“If you are unsure, please contact your local council directly. You can check who your local council is by visiting Find your local council.”
The new £100 payment comes in addition to other Budget measures to tackle rising energy bills, including scrapping standing charges on gas bills for around 23 million homes and an extension of the previously announced VAT cut on electricity bills until July 2027, taking around £50 off the Ofgem annual price cap in April 2027.
