Households in England living in council tax bands A to D are due to receive a £100 energy payment from January 2027 under measures announced in the UK Autumn Budget on 28 October. The government says up to 20 million households will qualify, although it has not yet published the scheme's full eligibility criteria.

The Department for Energy Security and Net Zero's explanation sets out how the payment is intended to reach residents. It also describes planned changes to gas standing charges and a separate energy-debt scheme. These measures have different timetables, so the announcement does not mean that bills or account balances change immediately.

Who would receive the £100 payment

The Household Energy Payment is intended for people who are responsible for council tax and occupy a property in bands A to D as their main home. Most households exempt from council tax are also expected to be included. The department says detailed eligibility rules will follow, leaving the treatment of individual exemptions to those later rules.

Second homes and empty properties are excluded. Households where the householder is not responsible for paying council tax are also outside the stated criteria. The scheme is therefore linked to the council tax position of the home and its occupant, rather than being a payment to every person with an energy account.

For eligible households paying council tax by direct debit, the government says the payment will go directly into their bank account without an application. People who do not pay by direct debit will be invited by their council to apply. January 2027 is the announced start of payments, not a specified payment date for every household.

The department also warns residents about requests for personal information. It says only their council should contact them about claiming the rebate, and advises checking directly with the council if a message's authenticity is uncertain. Its announcement does not direct households to a commercial claims service.

This particular scheme applies in England. Scotland, Wales and Northern Ireland will receive additional funding, with their governments deciding how to provide support suited to local needs. The England eligibility rules should therefore not be assumed to describe arrangements in the other three nations.

A further £100 million will go to local authorities for discretionary help for households outside the £100 rebate's eligibility criteria. Councils will set their own conditions and publish application information once local arrangements are ready. The announcement does not establish a single national application process for that separate fund.

Gas charges and debt relief still need further detail

The government has asked energy regulator Ofgem to remove standing charges from household gas bills as early as 2027. Standing charges are fixed costs that do not depend on consumption. Their removal would not eliminate the underlying system costs: the department says those costs would move into the unit rate charged for gas use.

That distinction means the effect on a household's total bill would depend on how much gas it uses. The government expects households with lower consumption to benefit, but acknowledges that some vulnerable households cannot avoid high gas use. It plans targeted mitigation for some households, with details still to come. The announcement does not give a final replacement unit rate.

A separate Debt Relief Scheme would provide targeted, one-off help for vulnerable households. The department identifies billpayers receiving means-tested or disability benefits, and pensioners, who have accumulated debt since the 2022 to 2024 energy crisis. Support would depend on re-engaging with repayment, and Ofgem is due to consult on the final design. It should not be read as an automatic write-off already applied to accounts.

The package also extends the removal of VAT from household electricity bills until July 2027. That VAT change began on 1 October, so its extension is distinct from the new payment scheduled for January. The department estimates the VAT removal saves an average £45 a year, rather than guaranteeing that amount for every household.

For related reporting, Dalimss News has covered the separate carers, parental-pay and household-cost package announced on 26 October, and development consent for the Great North Road solar park. Neither announcement is an application route for the new energy payment.

Contains public sector information licensed under the Open Government Licence v3.0.