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BackWill I get the £100 energy payment and when will I receive it?
Will I get the £100 energy payment and when will I receive it?
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BBC Business2 hours agoPolitics2 min read

Will I get the £100 energy payment and when will I receive it?

Chancellor John Healey announces £100 cost-of-living payments funded by a bank tax rise in his Budget.

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Up to 20 million households in England in council tax bands A to D will receive a £100 payment this winter to help with energy bills, funded by a temporary increase in the bank corporation tax surcharge.

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Why It Matters

Chancellor John Healey announced a £100 winter energy payment for households in England during his Budget, funded by bank taxes.

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Up to 20 million households in England will get a £100 payment to help with their energy bills this winter, Chancellor John Healey has announced in his Budget.

Here's what you need to know about the payment.

For many people, the £100 on offer is a lot of money, but it's worth considering the context.

A typical yearly energy bill is forecast to jump by £276 in January, according to consultants Cornwall Insight.

And some more recent forecasts suggest a typical annual bill could rise by £400 or so to £2,100 in January. If so, the saving would be only a quarter of that.

Therefore many people will still feel worse off despite the payment.

Those living in properties which are in council tax bands A to D in England will get the payment, the government has said.

As such, it's worth checking which council tax band your home is in, external. If you live in England, you can use the search function by typing your postcode into the box.

If you get a paper council tax bill, your band will also be printed on there.

The chancellor said the policy was for England but that funding would be given to Scotland, Wales and Northern Ireland to make the payment as well.

He urged the devolved governments to follow suit to "give people of all nations in the UK breathing space on their energy bills this winter".

The Welsh government has said that it will also make a £100 cost-of-living payment to all households in council tax bands A to D.

The Scottish government said it would "seek to replicate" the £100 energy payment.

Meanwhile, the Northern Irish government does not have the legal authority to make the £100 payments unless it agrees its budget, which it has failed to do since the start of this financial year.

If you pay your council tax by direct debit, the money will be paid directly into the bank account that you use to pay it, from the start of January.

Students living in halls will not get the payment because student halls are not in council tax bands A to D.

However, if you're a student living in a property that is in council tax bands A to D, as in a private home or flat let out by a landlord, then you will get the payment.

Students do not pay council tax so the local authority will be responsible for finding a way of giving them the payments.

This is also the case for those who do not pay council tax because of another kind of exemption, or if you do pay council tax but you do it by cash or some other way.

The government said it would give councils guidance on how local authorities should do this in due course.

The chancellor said the money for the £100 cash payments is coming from a tax rise on banks.

The surcharge on banks' corporation tax will rise from 3% to 6% for 15 months from 1 January 2027 to 31 March 2028.

What to Watch

AI outlook — possibilities, not facts

  • Payments will be made directly via direct debit from January.

    Very likely · Within months

Open Questions

  • How will students not paying council tax receive the payment?
  • Will Scotland and Northern Ireland successfully implement equivalent payments?

Related Topics

This article was originally published by BBC Business.

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