Households in England on lower council tax bands will receive a £100 payment towards their energy costs under measures announced in the Autumn Budget, according to the government. The Household Energy Payment is expected to reach up to 20 million homes from January 2027.
Key points
- £100 payment — for homes in council tax bands A to D in England, paid from January 2027.
- Gas standing charges — Ofgem asked to remove them from household gas bills as early as 2027.
- Debt relief — one-off help for vulnerable households that re-engage with their supplier.
- VAT cut extended — the removal of VAT on household electricity bills continues until July 2027.
The payment applies to people who are liable for council tax and live in a band A to D property as their main home. Second homes, empty properties and households where the billpayer is not responsible for council tax will not qualify. Most households exempt from council tax will be included, with full criteria to be published later.
Those paying by direct debit need do nothing, as the money will go straight into their bank account. Others will be invited to apply by their council. Ministers warned that only the local authority should contact people about the rebate, and urged residents to check with their council if a message seems suspicious.
Scotland, Wales and Northern Ireland will get extra funding, with their governments deciding how to deliver similar support. An additional £100 million will go to local authorities in England for discretionary help for households outside bands A to D, and the £150 Warm Home Discount remains available for those on means-tested benefits.
Standing charges and energy debt
The government has asked the regulator Ofgem to strip standing charges from household gas bills as early as 2027. The fixed costs will move into the unit rate instead, so low gas users are likely to see lower bills while heavier users pay more. Targeted mitigation is promised for some vulnerable households that use high amounts of gas.
Under a Debt Relief Scheme, vulnerable households will be able to have energy debt built up since the 2022-4 crisis written off, provided they re-engage with their supplier. Eligibility covers billpayers on means-tested benefits, disability benefits or pensions. Ofgem will consult shortly on the final design.
The VAT cut on household electricity bills, worth about £45 a year on average, will run until July 2027. Ministers said they also want to bring energy costs in line with Europe within a decade through market reform and more homegrown clean power.
What it means in practice
Most people in England in bands A to D will not need to lift a finger to get the £100, but the money does not arrive until January 2027, so it will not help with bills this winter. The gas standing charge change is the bigger long-term shift for anyone heating with gas, though how much you gain or lose depends on how much you use.
- Check your band — if you are unsure whether you qualify, look up your council tax band before the scheme opens.
- Watch for scams — councils will contact eligible households; anyone else asking for details should be treated with suspicion.
- Energy debt — if you owe money from the crisis years and receive certain benefits, keep an eye on Ofgem's consultation for when the relief scheme opens.
