Free £100 Energy Payment: Everything You Need to Know

Up to 20 million households in England are getting £100 paid straight into their bank account this winter.

Chancellor John Healey announced the new Household Energy Payment in the Budget on 28th October 2026. It’s a £2.6 billion scheme to help with rising energy bills.

Here are the key details in plain English:

Who gets it?

✅ You WILL get it if:

• You live in England
• Your home is in Council Tax band A, B, C or D
• That’s about 80% of homes in England – around 20 million households

❌ You will NOT get it if:

• Your home is in Council Tax band E, F, G or H
• You live in student halls (halls aren’t council tax banded)

Not sure of your band? Check your annual council tax bill or search your postcode on the Gov Council Tax band checker.

How much and when?

• Amount: £100 – one-off payment, per household (not per person)
• When: From the start of January 2027
• How: Paid directly into your bank account – it will be the account you normally use to pay your council tax. It is NOT a discount on your bill or a voucher.

Do I need to apply?

For most people – NO.

If you pay council tax by Direct Debit, it will be automatic. You don’t need to fill in a form.

If you don’t pay council tax, you will still get it, but differently:

• Students in a private house/flat in bands A-D: Your local council will contact you / find another way to pay you
• People who are exempt from council tax or pay by cash: Your council will also arrange payment for you. The government will give councils guidance on this soon.

What about Scotland, Wales and Northern Ireland?

The £100 scheme is for England, but the other nations get funding for it:

• Wales has said it will match the payment
• Scotland is planning to replicate it
• Northern Ireland will also receive its share

Important to know

• Energy bills are still expected to rise by £276 to £400 in January to around £2,100 a year for a typical household. This £100 is designed to give “breathing space”, it won’t cover the whole rise.
• This is separate to the VAT cut on electricity (£50 off) and the plan to scrap gas standing charges in 2027.

Watch out for scams!

You will NOT be asked to click a link, give bank details by text/email, or apply on a strange website to get this payment. If someone contacts you asking for that, it’s a scam. The payment comes via your council.