Chancellor John Healey announces £100 energy payment for 20 million UK households
The payment, part of the Autumn Budget, will be deposited by local councils and costs £2.6 billion.
By Felo News Desk · Published
Chancellor John Healey announced a £100 energy payment for roughly 20 million households in council tax bands A‑D during the Autumn Budget, with deposits to begin in January 2027, according to the Independent.
What happened
The Budget, delivered on 29 October 2026, includes a "Household Energy Payment" of £100 per eligible household. Payments will be made directly into bank accounts by local councils. Eligibility is limited to properties in council tax bands A, B, C or D, including students and other exempt residents whose homes fall in those bands. Those not on direct‑debit council tax must provide bank details. The scheme is funded at £2.6 billion and will run through the winter months.
What the reports add
The Independent’s two articles both describe the payment but differ in emphasis. One piece notes that the payment will be deposited in January 2027 and highlights that the Energy Price Cap is expected to rise by £276 at that time, based on consultants Cornwall Insights. The other article adds that the government will make funding available to devolved administrations in Scotland, Wales and Northern Ireland to adopt the same measure, and quotes Healey’s Budget speech about providing "breathing space" for families.
What was said
Healey told the House of Commons, "I know that with the conflict in the Middle East, rising energy bills are a real worry… today I’m taking one further step… I am announcing a £100 energy payment for households, paid directly into people’s bank accounts to deal with rising energy bills," as reported by the Independent.
How it came about
The payment follows a series of recent energy‑cost pressures. On 1 October 2026 Ofgem raised the energy price cap by 4% to £1,723, and the government suspended the 5% VAT on electricity until March 2027, saving about £45 per year for the average payer (see Felo coverage). A Uswitch survey published on 20 October 2026 warned that more than nine million households face energy debt this winter (see Felo coverage). The new £100 payment is intended to provide immediate relief ahead of a forecasted further 16% rise in the price cap on 1 January 2027.
Key facts
- Around 20 million UK households in council tax bands A‑D will receive a £100 energy payment. (independent.co.uk)
- The scheme costs the government £2.6 billion. (independent.co.uk)
- Payments will be deposited by local councils in January 2027. (independent.co.uk)
Timeline
- 2026-10-01 — Energy price cap raised by 4% to £1,723; VAT on electricity suspended until March 2027.
- 2026-10-20 — Uswitch survey shows nine million UK homes face energy debt this winter.
- 2026-10-28 — Healey pledges budget measures to cut energy bills, including fuel duty freeze.
