£100 heating payment will reach more homes in northern England and Midlands
The Government plans to give households in council tax bands A to D £100 towards winter heating bills, with payments due in January. Analysis of council tax data suggests the scheme will benefit a larger share of homes in northern England and the Midlands than in the South East and London, prompting criticism that it is poorly targeted.
The payment is expected to cost £2.6 billion and reach about 20 million households. Around nine in ten homes in the North East, North West and Yorkshire qualify, compared with 71 per cent in the South East and 69 per cent in London; eligibility is above 97 per cent in Stoke-on-Trent but below 50 per cent in several parts of Surrey and nearby counties. Typical annual energy bills are forecast to reach £1,750 in 2026-27, while the Resolution Foundation says the support is too broad and too small; the Prime Minister defended it as practical help for families.
In short
- £100 energy payments will go to homes in council tax bands A to D.
- Eligibility is higher in northern regions than in London and the South East.
- Critics say the payment is too broad and too small.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
A broad payment could offer quick, predictable help to households facing high winter bills, without requiring people to navigate a complex means test. Council tax bands A to D include many ordinary households whose incomes or savings may not reflect their ability to absorb a sudden energy cost, and the larger reach in northern England and the Midlands may reflect where more homes fall within those bands.
The case against
A flat £100 payment to around 20 million households spends public money on many people who may not need help, while offering too little to make a substantial difference to those in fuel poverty. Targeting support by income or energy need could direct more of the £2.6 billion towards households under the greatest pressure, rather than relying on council tax bands that vary in what they capture across regions.
Explained simply
Council tax bands run from A to H and are based on a property’s value, with A covering lower-value homes. The proposed payment uses those bands to decide which households qualify, so the share eligible varies between areas.
Energy costs can put pressure on household budgets, especially during winter, and government support is one way of helping with those bills. The debate is over how to direct limited public money: a broad payment reaches many households, while a more targeted scheme could focus support on people most in need.
The Government is responsible for setting the scheme and its cost. The Resolution Foundation, an economic research organisation, has questioned whether the proposed support is well targeted; the Prime Minister has defended it as practical help for families.
Read the full article at the source →
Originally published by Daily Mail as “Burnham’s new snub to the South East: How Labour’s £100 energy bailout will mainly go to the North”.