Survey reveals what some eligible households plan to use £100 energy payment for

More than half of eligible households do not intend to put any of the Government’s £100 payment to help with energy costs towards their bill, a survey suggests.

Some 57% of households in council tax bands A to D will not use the January payment as intended, while one in seven (15%) of those eligible said they planned to use some of the money for a summer getaway, the poll for package holiday provider On the Beach found.

Among 18 to 44-year-olds, 24% said they would put some of the cash towards a holiday deposit.

Around a third of those surveyed (32%) said the money would go on groceries, 13% intend to use it to pay off debt, and another 13% said they would place it into savings.

Chancellor John Healey announced the payment, to be paid directly to the bank accounts of households in council tax bands A to D at a cost of £2.6 billion, as part of last week’s Budget, saying it would give “breathing space” to households coping with soaring energy bills.

If follows Ofgem’s price cap rising by 3.6% to £1,723 for a typical household on October 1, with a further rise of around 22% forecast in January.

However, the End Fuel Poverty Coalition warned on the day of the announcement that the payment would “barely dent” the predicted rise in energy costs, and that because it is to be paid directly into household accounts “it may not even be spent on staying warm this winter”.

Caspar Nelson, vice-president of marketing and customer at On the Beach, said: “We know how precious holidays are, and everyone deserves something to look forward to.

“While household bills will rightly be the priority for many, it seems some Brits are already dreaming of a bit of summer sun.”

An HM Treasury spokesman said: “This Budget is about giving families breathing space at a difficult time.

“On energy, the new £100 Household Energy Payment is on top of the £150 of costs we already took off bills in April, and we’re extending zero VAT on electricity, which is expected to take around another £50 off the April price cap.”

Censuswide surveyed 1,425 householders in council tax bands A to D between October 30 and November 2.