Around 20 million households in council tax bands A to D will receive a £100 energy payment this winter, chancellor John Healey announced in his Autumn Budget on 28 October. The £2.6bn scheme will pay the money directly into eligible households’ bank accounts to help with rising energy costs.
Healey presented the payment as support for families facing higher bills amid the conflict in the Middle East. He said people looked to government for “a bit of breathing space” rather than solutions to all their problems.
According to The Independent, eligible households will receive the rebate automatically. Healey also announced funding for the devolved governments of Scotland, Wales and Northern Ireland, encouraging them to adopt the same measure.
To fund the policy, the government will raise the bank surcharge from 5 per cent to 8 per cent from January for 15 months. Healey acknowledged banks’ contribution through taxes, jobs and investment, while arguing that they should help finance support for households during current economic pressures.
Eligibility depends on a property’s council tax band rather than household income. The government’s postcode checker allows residents to find their band, although The Independent reported that the service went offline after the announcement.
The use of council tax bands raises questions about how closely the payment will reflect financial need. The Independent cited experts who say the banding system has failed to keep pace with unequal property price inflation. It noted that some high-value properties, particularly in London, could fall within band D and qualify.
Alongside the payment, Healey announced plans to remove gas standing charges, the fixed daily fees customers pay regardless of consumption. He will ask energy regulator Ofgem to remove them for around 23 million homes “in 2027 or as soon as possible after”.
The costs currently covered by those charges would instead move into the price charged per unit of gas. The Treasury estimated that 60 per cent of households could save an average of £45 a year. Healey also signalled that he would examine removing electricity standing charges.
Analysis
Why This Matters
- The £100 payment offers eligible households one-off help this winter, with qualification tied to council tax bands rather than income.
- Removing gas standing charges would change how bills are calculated, not eliminate the underlying costs. Savings would depend on consumption.
Background
Energy bills combine charges for the amount consumed with fixed standing charges. Moving fixed costs into unit rates changes how those costs are distributed between lower- and higher-use households.
Council tax bands classify properties by value. As The Independent reports, uneven changes in property prices can make those bands an imperfect guide to a household’s current financial circumstances.
Key Perspectives
John Healey: Presents the payment as temporary relief for families facing rising energy bills and says banks should help fund that support.
Experts cited by The Independent: Say council tax banding has failed to keep up with unequal property price inflation.
What to Watch
- Whether Scotland, Wales and Northern Ireland adopt the same payment using the funding announced for devolved governments.
- Ofgem’s timetable and implementation details for removing gas standing charges.
- Whether Healey’s examination of electricity standing charges leads to a further proposal.
Checked
12 claims in this story checked against 1 source: 9 supported.
Show each claim
- SupportedThe Budget announced a £100 winter energy payment for households in council tax bands A to D.The Independent UK: “Around 20 million households across the UK will get a £100 discount from their energy bills this winter, chancellor John Healey has confirmed at the Autumn Budget. ... But only households in council tax bands A to D will qualify for the payments.”
- SupportedThe £2.6bn scheme will reach around 20 million households.The Independent UK: “Around 20 million households across the UK will get a £100 discount from their energy bills this winter ... The payment will grant certain households an automatic rebate directly to their bank accounts in a measure that will cost the government £2.6bn.”
- Not in the sourcesThe announcement was made on 28 October.The Independent UK: “chancellor John Healey has confirmed at the Autumn Budget.”
- SupportedHealey said people looked to government for “a bit of breathing space”.The Independent UK: “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.”
- SupportedThe payment will go directly into eligible households’ bank accounts.The Independent UK: “The payment will grant certain households an automatic rebate directly to their bank accounts”
- SupportedThe government will fund the policy by increasing the bank surcharge from 5 per cent to 8 per cent from January for 15 months.The Independent UK: “banks will pay an extra 3 per cent – up from 5 per cent to 8 per cent – on the Bank Surcharge from January, and lasting for 15 months.”
- Not in the sourcesEligibility depends on a property’s council tax band rather than household income.The Independent UK: “But only households in council tax bands A to D will qualify for the payments.”
- Not in the sourcesThe government’s postcode checker allows residents to find their council tax band.The Independent UK: “Households can check if they are eligible for the £100 energy bill payment by using the government’s own postcode checker.”
- SupportedThe Independent reported that the postcode checker went offline after the announcement.The Independent UK: “However, the service crashed and went offline following the Budget announcement.”
- SupportedExperts said the banding system had failed to keep pace with unequal property price inflation.The Independent UK: “Experts have also pointed out that the current banding system has failed to keep up with property price inflation, which has been unequal across the UK over the past three decades.”
- SupportedHealey will ask Ofgem to remove gas standing charges for around 23 million homes “in 2027 or as soon as possible after”.The Independent UK: “Mr Healey will ask regulator Ofgem to remove gas standing charges for around 23 million homes “in 2027 or as soon as possible after”.”
- SupportedThe Treasury said 60 per cent of households could save an average of £45 a year.The Independent UK: “the Treasury said could save 60 per cent of households an average of £45 on their annual bills.”