John Healey announces £100 energy payment for millions of households

Millions of households to receive £100 energy payment - are you eligible? The Chancellor has unveiled further support with energy costs as households prepare for another difficult winter Sign up to the Money Newsletter I agree to receive updates and information about my account, the GB News Community, and related products and services from GB News. Email address Sign up By signing up you agree to the Terms and Conditions and Privacy Policy and Community Rules.

Thank you for signing up! See the latest from GB News here . Choose GB News on Google - add us as a preferred source Choose GB News Support GB News Champion free speech and independent journalism while unlocking exclusive benefits. Support us Around 20 million households in England will receive a £100 payment to help with rising energy bills this winter. The money will be paid to households in council tax bands A to D from January, regardless of their income, savings or whether they receive benefits.

Chancellor John Healey announced the one-off Household Energy Payment in his first Budget as families prepare for another sharp increase in heating costs. The scheme will cost the Treasury £2.6billion, including funding provided to Scotland, Wales and Northern Ireland. The devolved governments will decide whether to introduce equivalent support. Mr Healey said: "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. "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 £2.6billion scheme to take the pressure off in the coldest months and see people through to the spring."

TRENDING Stories Videos Your Say The Government says the money will be deposited directly into eligible households' bank accounts. Recipients will be free to spend it as they choose rather than having it credited to their energy account. Full details of how the payment will reach people who do not pay council tax by direct debit are expected to follow. The scheme is forecast to cover around 80 per cent of households in England. Government estimates suggest it will also reach 83 per cent of households experiencing fuel stress and 88 per cent of those in the three lowest income groups.

However, eligibility will be determined by the property's council tax band rather than the occupants' income or financial circumstances. This means families, couples and people living alone in bands A to D will receive the same £100 payment. Some expensive homes, particularly in London, could qualify because council tax bands in England are based on property values from April 1991. The Chancellor has unveiled further support with energy costs | PA/PARLIAMENT TV Meanwhile, households in bands E to H will miss out, even if the people living in them are struggling financially.

People can check their council tax band using the Government's online postcode checker, although the service temporarily went offline following the Budget announcement. The support comes as energy bills are forecast to rise by around £273 a year for a typical household in January, pushing Ofgem's price cap close to £2,000. A typical household currently pays £1,723 a year under the price cap, which limits the amount suppliers can charge per unit of gas and electricity.

It does not place an absolute ceiling on a household's total bill, as the final amount still depends on energy use. The Government said wholesale gas prices had tripled since February, with disruption caused by the conflict in the Middle East driving up global energy costs. Tamsin Powell, consumer finance expert at Creditspring, said the payment was welcome but warned it would not cover the expected rise in bills. Energy prices have soared | GETTY She said: "Today's £100 household energy payment is welcome, as is the extension of the VAT cut on electricity until July, but ultimately it won't go far enough for many households.

"Despite the removal of VAT from electricity earlier this month, it hasn't stopped bills rising. The price cap still went up for a typical household from 1 October, and forecasters expect another rise in January, in the coldest part of winter." Creditspring research found that rising energy costs were among the public's biggest Budget concerns, cited by 51 per cent of respondents. Direct help with bills was the most requested form of Government support, backed by 46 per cent.

Among people aged over 55, 40 per cent said they had left their heating off when they needed it because they were worried about money. Ms Powell added: "Any support is valuable, but with bills set to keep rising, it is essential that help reaches everyone who is struggling this winter." Simon Francis, coordinator of the End Fuel Poverty Coalition, was more critical of the announcement. He said: "The Chancellor talked the talk on energy bills, but ultimately failed to walk the walk.

"Yet the only immediate support is a payment that will barely dent the predicted rise households face in January. Because it is paid directly into household bank accounts in England, it may not even be spent on staying warm this winter." He also warned that removing gas standing charges would not eliminate the underlying cost, as it would instead be moved into the price charged for each unit of gas. "Shifting standing charges onto unit rates simply moves the cost around and may actually harm some high-energy-use, low-income households," he said.

Mandy Girder, a partner at tax firm Blick Rothenberg, questioned whether lasting reductions to bills would provide more meaningful help. She said: "While a one-off payment would be welcomed by many families, some may argue that a permanent reduction in household bills would provide more meaningful long-term support than a single cashback payment." Kevin Brown, savings specialist at Scottish Friendly, said the Chancellor could not eliminate the international pressures driving energy prices and inflation.

Britain's energy bill crisis is expected to continue | GETTY He said: "As long as the conflict in the Middle East continues to disrupt energy supplies, the risk of further price rises, and therefore potentially interest rates, remains." The £100 payment forms part of a broader energy package announced in the Budget. Mr Healey extended the removal of VAT from household electricity bills until July, three months longer than planned. The measure is expected to save a typical household approximately £50.

Gas standing charges will also be removed from 2027 or as soon as possible afterwards. However, network costs will be transferred to unit rates, meaning lower gas users are likely to benefit most while some higher-use households could pay more. The £100 payments will be funded partly by a temporary increase in the surcharge on qualifying bank profits. The rate will double from three per cent to six per cent for 15 months. Our Standards: The GB News Editorial Charter Money Britain's benefits bill forecast to hit £431billion Money Lifetime ISA to be replaced as John Healey makes major change to 'unfair' withdrawal penalty Money John Healey raises tax-free allowance to protect nearly one million pensioners from income tax Money John Healey announces £10million alcohol duty relief in boost for British high streets Money Rachel Reeves's planned £8,000 cut to Cash ISA allowance scrapped by John Healey Money Martin Lewis explains what John Healey told him ahead of today's Budget - full list of updates Money John Healey doubles bank surcharge to fund energy bill support Exclusive Money Budget 2026: Recruitment boss tells John Healey what British firms need to create jobs Money OVO Energy launches support scheme offering free electric blankets and white goods Exclusive Money Mortgage warning as John Healey's Budget 'giveaway' could backfire on 1.8 million homeowners Money 'Is that it?'

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