Budget 2026: Millions of UK households to get £100 energy bill payment – check if you’re eligible

Around 20 million households across the UK will get a £100 discount from their energy bills this winter, chancellor John Healey has confirmed at the Autumn Budget.

The help will grant certain households an automatic rebate directly to their bank accounts, the chancellor said, a measure that will cost the government £2.6bn.

But only households in council tax bands A to D will qualify for the payments.

Speaking during his Budget speech, Mr Healey said: “Let me say this to families at home. I know that with the conflict in the Middle East, rising energy bills are a real worry. I know that people look to Government at times like this, not to solve all their problems, but to give them a bit of breathing space.

“So today I’m taking one further step. This winter, for 20 million households in council tax bands A to D, I am announcing a £100 energy payment for households, paid directly into people’s bank accounts to deal with rising energy bills.

“That’s a £2.6 billion scheme to take the pressure off in the coldest months and see people though to the spring.”

The chancellor added that he would also make funding available to the devolved administrations of Scotland, Wales and Northern Ireland, encouraging them to adopt the same measure.

Mr Healey said he was delivering his Budget “at a time when global uncertainties and pressures are swirling worldwide and hitting people here in Britain”.

The impact of the war in Iran has contributed to the difficulties facing the economy, pushing up inflation as a result of higher oil and gas prices.

To fund the new energy bill policy, the government has announced that banks will pay an extra 3 per cent on the Bank Surcharge from January, and lasting for 15 months.

Mr Healey said the UK’s world-leading banks “make a huge contribution to this country, In the tax they pay. In the jobs, industry and investment they support”.

But he added that with the current global economic storms, he was looking to them to help fund breathing space for British families.

How to check your council tax band

Households can check if they are eligible for the £100 energy bill payment by using the government’s own postcode checker. However, the service went offline following the Budget announcement.

With eight possible council tax bands from A to I, the payment applies to households in the first four.

The band in which a property falls is tied to its value. However, there has been much criticism of the current system, with the last full valuation being carried out in 1991.