Andy Burnham’s government has named the four groups of people who will not qualify for the £100 Household Energy Payment.
Chancellor John Healey has outlined a support package for households struggling as energy bills continue to soar due to the Middle East conflict.
In his maiden budget, Healey said he will ‘create immediate breathing space for families’ facing the increased cost of living, and pledged to help bill payers long-term by removing standing charges from gas bills and supporting those with energy debt.
The Chancellor revealed approximately 20 million households will receive a £100 payment from the government to assist with energy bills this winter. The £2.6 billion scheme is designed to ease pressure during the coldest period and help people through to spring, reports the Manchester Evening News.
Delivering the budget, Mr Healey said: “Let me say this to families at home. I know that with the conflict in the Middle East, rising energy bills are a real worry. I know that people look to Government at times like this, not to solve all their problems, but to give them a bit of breathing space.
“So today I’m taking one further step. This winter, for 20 million households in council tax bands A to D, I am announcing a £100 energy payment for households, paid directly into people’s bank accounts to deal with rising energy bills.
“That’s a £2.6 billion scheme to take the pressure off in the coldest months and see people though to the spring.”
As many as 20 million households will qualify, including a projected 83 per cent of fuel stressed households in England, and 88 per cent of households in the bottom three income deciles. Households in England qualify for the Household Energy Payment if they are responsible for paying council tax on, and reside in, a property in council tax bands A to D as their primary residence.
This will cover most households exempt from council tax, with complete eligibility criteria to be released in due course, the government states. The payments will be distributed from January 2027 and transferred directly into bank accounts.
However, Andy Burnham’s government has since confirmed anyone who is paying council tax on, and residing in, a property outside of council tax bands A to D is not entitled to the payment. That means anyone living in a band E, F, G, or H home is ineligible.
Second homes, vacant properties or households where the householder isn’t liable for paying council tax are also not entitled.
Those who pay their council tax by direct debit and reside in bands A to D need not take any action, as the rebate will be deposited straight into their bank account. If you don’t pay by direct debit, your council will invite you to apply for the rebate directly.
The government has issued a warning: “Nobody other than your council should get in touch asking you to claim the rebate. Only give out your personal information if you are certain it is your local council contacting you. If you’re unsure whether a message is genuine, double check with your council.”

