Full details of Andy Burnham's £100 cash payment – three groups who don't qualify

Around 20 million households are due to receive £100 from the government this winter to assist with energy costs. The new cost of living measure is part of Chancellor John Healey's Budget. During his maiden Budget, the Chancellor pledged to provide households and businesses with "breathing space today" from everyday costs. Described as a "steady-as-she-goes" Budget, Healey has faced restricted room for substantial handouts leading up to the announcement.

Healey has unveiled a series of initiatives aimed at addressing the cost of living, particularly concentrating on energy bill prices for households throughout the UK. During his Budget yesterday, the Chancellor stated households in council tax bands A to D will receive the new Household Energy Payment, with the assistance costing £2.6 billion. Speaking during his Budget speech, 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," reports the Manchester Evening News . "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."

Healey stated funds would be allocated to devolved administrations. He urged them to "do the same and give people of all nations in the UK breathing space on their energy bills this winter". Here's what we've learned about the payments from today's Budget announcement. The government confirmed the payments will go to households in England in council tax bands A to D. Approximately 20 million households stand to benefit, with roughly 80 per cent of English households due to receive the £100 Household Energy Payment.

Setting out eligibility criteria for the scheme, the government stated: "Households in England are eligible for the Household Energy Payment if they are liable for council tax on, and live in, a property in council tax bands A to D as their main home. "This will include most households exempt from council tax, with full eligibility criteria to be published in due course. Second homes, empty properties or households where the householder isn't responsible for paying council tax are not eligible."

The Chancellor added devolved administrations in Scotland, Wales and Northern Ireland will get their portion of the funding through the Barnett formula, enabling them to deliver comparable support. The support is being delivered through the Council Tax system. Most people will get the cash paid straight into their bank account this winter, the chancellor confirmed. The payments will be issued from January 2027. The government said: "If you pay by direct debit and live in bands A to D, you don't need to do anything – the rebate will be paid directly into your bank account.

If you don't pay by direct debit, your council will invite you to apply for the rebate directly. "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."