Budget 2026: Millions of UK households to get £100 energy bill payment – check if you’re eligible
Chancellor John Healey announced a £100 energy bill payment this winter for around 20 million UK households in council tax bands A to D. The automatic rebate is intended to ease pressure from rising energy costs and will cost the government £2.6 billion.
The government says the payment will go directly into eligible households’ bank accounts, while devolved governments are being encouraged to adopt the same measure. The policy will be funded partly by raising the bank surcharge from 5 per cent to 8 per cent for 15 months from January. Separately, gas standing charges are due to be removed for around 23 million homes from 2027 or as soon as possible afterwards; the Treasury estimates this could save 60 per cent of households an average of £45 a year.
In short
- Around 20 million households are set to receive £100 this winter.
- Eligibility is limited to council tax bands A to D.
- Gas standing charges are due to end for around 23 million homes.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
A broad, automatic payment could quickly help millions of households facing higher energy bills, including people who may not qualify for means-tested support. Funding it through a temporary increase in the bank surcharge asks a sector with substantial resources to contribute, while removing standing charges could make bills fairer for households that use less gas.
The case against
A £100 payment for households across council tax bands A to D may be poorly targeted, directing public money to some who need little help while offering too little to those under the greatest pressure. The £2.6 billion cost and higher bank surcharge could bring wider economic costs, and the promised savings from removing standing charges are modest and may take time to arrive.
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