The £100 Household Energy Payment: Who Gets It, When, and How to Avoid the Scams

If your home is in council tax band A, B, C or D in England, you live there as your main home and you are the person liable for its council tax, you should get a one-off £100 Household Energy Payment from January 2027. Pay your council tax by direct debit and you need do nothing: the money goes straight into your bank account. Everyone else will be invited by their council to apply. The government says up to 20 million households will be eligible, and the only organisation that should contact you about claiming it is your own council.

The payment was announced in the Budget on Wednesday 28 October 2026. It is not yet fully worked out: the government says full eligibility criteria will be published “in due course”. Below: what is confirmed, who is left out, the devolved nations, the scams, and the Budget’s other energy measures.

What the government has actually announced

The Department for Energy Security and Net Zero’s guide, What the Autumn Budget 2026 means for your energy bills, says the payment “will provide a £100 payment to households in Council Tax bands A to D in England” to help with energy costs, and that “the payments will be made from January 2027.”

The Budget 2026 document puts the cost at £2.6 billion and says the money will be “delivered through the council tax system”. It is paid for by temporarily raising the Bank Corporation Tax Surcharge from 3 to 6 per cent, from 1 January 2027 to 31 March 2028. The government estimates it will reach 83 per cent of fuel-stressed households in England and 88 per cent of households in the bottom three income deciles, and says around 80 per cent of households in England will gain from it on top of the VAT cut on electricity.

Status: announced, details to follow

The £100, the band A to D rule and the January 2027 start are announced in the Budget. The full eligibility rules, exact payment dates and how councils will handle applications have not been published. Anything giving a specific payment date for your area is ahead of what the government has said.

Who qualifies — and who does not

According to the DESNZ guide, households in England are eligible if they are “liable for council tax on, and live in, a property in council tax bands A to D as their main home.” That breaks down into four tests:

• Location: the home is in England. Scotland, Wales and Northern Ireland are handled separately (see below).
• Band: the property is in council tax band A, B, C or D.
• Main home: you actually live there.
• Liability: you are the person responsible for paying its council tax.

The guide is clear about who is out: “Second homes, empty properties or households where the householder isn’t responsible for paying council tax are not eligible.” If your landlord, not you, is liable for the council tax (as can happen in some shared houses), that wording suggests you may not qualify. The government has not said this in terms, so wait for the full criteria before assuming either way.

Exempt households are not automatically out: the guide says the scheme “will include most households exempt from council tax”, without yet saying which exemptions count. People who get Council Tax Reduction are not mentioned at all. Where the guidance is silent, we have not guessed.

Read the other way round, around one in five households in England, and 17 per cent of fuel-stressed households, are outside the scheme. The discretionary fund below is meant to help some of those households, but it is not designed to reach all of them.

How and when you get paid

• You pay by direct debit: the DESNZ guide says “you don’t need to do anything” and “the rebate will be paid directly into your bank account.”
• You pay any other way: “your council will invite you to apply for the rebate directly.”

Payments start from January 2027. No council-by-council timetable has been published, so do not assume you have been missed if nothing lands in the first week of January.

Check your council tax band in two minutes

If you are not sure of your band, the GOV.UK Check your Council Tax band service lets you look up any home in England or Wales by address or postcode. For homes in Scotland, GOV.UK points you to the Scottish Assessors website.

If you think your band is wrong, that is a separate question with its own rules and evidence — our guide to challenging your council tax band covers it. It is not a quick route to the £100.

Not in bands A to D? The £100 million discretionary fund

The government accepts that “not all households struggling with their energy bills live in bands A to D.” The Budget provides “£100 million additional funding for local authorities in England” for households acutely affected by rising bills who are not eligible for the £100 payment.

This is not a second automatic payment. Each council sets its own eligibility criteria and will publish how to apply on its website “once local arrangements are in place.” If you are in band E or above and struggling, use GOV.UK’s Find your local council tool, check its website for the scheme, and contact it directly if you are unsure.

Scotland, Wales and Northern Ireland

The £100 Household Energy Payment is an England-only scheme. In the DESNZ guide’s words: “Scotland, Wales and Northern Ireland will receive additional funding, and their governments will decide how best to use it to provide similar support based on local needs.” The Budget document confirms the devolved governments receive their share through the Barnett formula, and that it is funding the Northern Ireland Executive to provide comparable support with household electricity bills.

So there is no automatic £100 in Edinburgh, Cardiff or Belfast yet. On 28 October the Scottish Government said it “will ensure that households in Scotland will benefit from the one-off £100 payment for energy bill support”, but it has not said who qualifies, how it will be paid or when. As of 1 November 2026 we could not find a published scheme from the Scottish Government, the Welsh Government or the Northern Ireland Executive. Until one appears on gov.scot, gov.wales or nidirect, treat detailed claims with caution.

How to avoid the scams

One-off government payments attract fake texts and calls. Learn the rules now.

• Only your council. The DESNZ guide says: “Nobody other than your council should get in touch asking you to claim the rebate.” Not the government, not your energy supplier, not a ‘claims service’.
• Direct debit payers have nothing to claim. If you pay by direct debit, any message asking you to ‘apply’, ‘verify’ or ‘confirm your bank details’ for the £100 is a red flag.
• Never click the link. Contact your council using the details on its own website. The guide says: “If you’re unsure whether a message is genuine, double check with your council.”
• Guard your details. “Only give out your personal information if you are certain it is your local council contacting you.” Never give bank details to someone who texted or rang you out of the blue.
• No fee. Nothing published suggests any charge to receive the payment; treat anyone asking for one as a scammer.

To report one, Citizens Advice says to forward scam texts to 7726 and scam emails to report@phishing.gov.uk. In England it points you to Report Fraud on 0300 123 2040. In Scotland, Citizens Advice Scotland says to call the police on 101 if the scammer is in your area or you have transferred money to them in the last 24 hours, and lists Advice Direct Scotland on 0808 164 6000. If you have shared bank details or paid money, tell your bank straight away, using the number on its website or the back of your card.

The rest of the Budget’s energy picture

VAT on electricity: extension to July 2027 announced

Household electricity has been zero-rated for VAT since 1 October 2026. HMRC’s guidance on the temporary zero rate covers the period 1 October 2026 to 31 March 2027 — that part is law, set by a Treasury order (a statutory instrument). It applies in Great Britain only.

The Budget announced an extension: HM Treasury’s Budget news story says the cut “will be extended until 1 July 2027”, taking “around £50 off the Ofgem annual price cap in April 2027.” DESNZ puts the saving from the cut at an average of £45 a year. For Northern Ireland, the Budget document says “Extended VAT relief is expected to apply in Northern Ireland from April 2027.” Because the current legislation runs only to 31 March 2027, the extension needs new legislation, and the April 2027 cap is set by Ofgem, not the Treasury.

Gas standing charges moved into the unit rate

The government has asked Ofgem — the energy regulator for Great Britain — to abolish standing charges on household gas bills. The Budget document says it is “aiming for delivery by the end of 2027 or as soon as possible after then”; the DESNZ guide says “as early as 2027”. Either way, there is no fixed date. This is a request to the regulator, with details to follow, not a decided rule, and it covers gas only. The Budget also commits to reforming electricity standing charges, with details next year.

The costs do not disappear. DESNZ says they “will move to the unit rate in your energy bill, meaning how much you pay overall depends on your energy use.” Simple arithmetic follows: low gas users pay less, while households that use a lot of gas pay more of the costs than they do now. DESNZ says the typical household on median gas consumption will benefit, and that it “will set out targeted mitigation for some households in due course” for vulnerable heavy users. Our guide to zero standing charge tariffs shows how that trade-off works on tariffs that already exist.

Energy debt relief

Household energy debt has “almost tripled to over £5 billion (Q2 2026)”, according to the Budget document. DESNZ says households whose billpayer is on means-tested or disability benefits, or is a pensioner, and who built up debt since the 2022–4 energy crisis will be eligible to have it written off through a Debt Relief Scheme, provided they re-engage with their supplier. Ofgem will consult on the final design: this is to be consulted on. Our explainer on energy debt relief has the background.

Warm Home Discount

The Warm Home Discount is not new, but the DESNZ guide flags it alongside the £100 for people on means-tested benefits. GOV.UK describes it as “a one-off £150 discount off your electricity bill”. In England and Wales you qualify if, on 23 August 2026, your supplier was in the scheme, you or your partner got certain means-tested benefits (including Universal Credit, Pension Credit, Housing Benefit and income-related ESA), and your name or your partner’s was on the electricity bill. The discount is applied by 31 March 2027. Scotland has its own rules; the scheme is not available in Northern Ireland.

What to do now

Very little. For most people in bands A to D who pay by direct debit, the £100 should simply arrive.

• Check your band on GOV.UK if you do not know it.
• Keep your direct debit details current. The payment goes to your bank account, so if you have switched banks, make sure the direct debit moved too.
• If you do not pay by direct debit, watch your post and your council’s website from the new year for an invitation to apply.
• In band E or above, or outside England? Watch your council’s or your own government’s website rather than acting on rumour.
• Behind on energy bills? Talk to your supplier; the proposed debt relief depends on re-engaging with them.

Frequently asked questions

Who gets the £100 Household Energy Payment?

Households in England whose home is in council tax band A, B, C or D, who live there as their main home and are liable for its council tax. The government says up to 20 million households are eligible, including most council tax exempt households. Second homes, empty properties and households where the householder is not responsible for paying council tax are excluded. Full eligibility criteria have not yet been published.

When will the £100 energy payment be paid?

From January 2027. The government has not published exact dates, and councils will deliver it, so timing may vary by area. If you pay council tax by direct debit, the money goes straight into your bank account without you doing anything. If you pay another way, your council will invite you to apply. Do not assume you have been missed in the first week of January.

Do I need to apply for the Household Energy Payment?

Only if you do not pay council tax by direct debit. Direct debit payers in bands A to D need do nothing; the payment goes into their bank account automatically. Everyone else will be invited by their council to apply. Nobody other than your council should contact you about claiming it, so treat any other text, email or call as a likely scam.

I live in band E or above. Can I get any help?

Possibly. The Budget gives councils in England an extra £100 million for discretionary support to households struggling with energy bills who are not eligible for the £100 payment. Each council sets its own rules and will publish how to apply on its website once local arrangements are in place. You may also qualify for the £150 Warm Home Discount if you get certain means-tested benefits.

Does the £100 payment apply in Scotland, Wales or Northern Ireland?

No, the £100 scheme applies in England only. Scotland, Wales and Northern Ireland receive extra funding through the Barnett formula, and their governments decide how to use it. The Scottish Government has said households in Scotland will benefit from the £100, but by 1 November 2026 none of the three had published who qualifies, how it is paid or when, so wait for an official announcement.

How do I spot a Household Energy Payment scam?

The government says nobody other than your council should get in touch asking you to claim the payment. Direct debit payers have nothing to claim at all. Never click links in unexpected texts or emails, never give bank details to someone who contacted you, and never pay a fee. Check with your council using details from its own website. Forward scam texts to 7726 and scam emails to report@phishing.gov.uk.

Last reviewed: November 2026. The £100 Household Energy Payment and the £100 million discretionary fund apply in England only; Scotland, Wales and Northern Ireland receive funding and decide their own support; the Scottish Government has said households in Scotland will benefit from the £100, but no devolved scheme details had been published at the time of writing. The VAT zero rate on household electricity applies in Great Britain, with relief expected in Northern Ireland from April 2027. The gas standing charge change is a request to Ofgem, which regulates Great Britain. Figures are taken from DESNZ, HM Treasury, HMRC, Scottish Government and GOV.UK publications of 28 October 2026 and earlier. This article is general information, not personal financial advice. Budget measures can change before they become law, so check GOV.UK or the relevant body, and get free help from MoneyHelper or Citizens Advice.

Karl Johnson

GetSmartSaver.Uk Editor

Karl Johnson launched GetSmartSaver.Uk in 2026 to give UK households one honest place to compare savings accounts, household bills and everyday deals. He researches, writes and verifies every guide on the site personally. His day job is operations management for a UK manufacturer and wholesaler, running multi-site P&L across more than 30 retail stores, negotiating supplier contracts, and owning the compliance side of the business — including acting as the named HMRC responsible person for a UK excise duty regime. That is where the method behind this site comes from: go to the primary source, check every figure against the provider's own documentation, and never publish a number you cannot evidence. Karl is not a financial adviser and GetSmartSaver.Uk is not regulated by the Financial Conduct Authority. Everything here is written from the position of a household consumer doing the research properly — rates checked against each provider's own website, terms read in full, and the working shown so you can check it yourself. Where a guide is wrong or out of date, he wants to hear about it: team@getsmartsaver.co.uk. Based in Coventry, West Midlands.

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