Budget 2026: £100 energy payment for households announced

Millions of households in England are set to get help with their energy bills in the winter.

Speaking in today’s Budget, chancellor John Healey acknowledged that rising energy bills are a “real worry” for households as the conflict in the Middle East continues.

So he’s confirmed that this winter, 20m households in council tax bands A to D will get a £100 energy payment.

“That’s a £2.6bn scheme to take the pressure off in the coldest months and see people through to the spring,” Mr Healey said.

How will it work?

The £100 payment will be paid directly into people’s bank accounts, so you won’t need to apply.

If you're not sure what council tax band your house is in, you can check here.

“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,” Mr Healey added.

Money Wellness’s view

A £100 payment straight into people’s bank accounts will help eligible households and it’s quick, which matters when bills are going up in January. 

But using council tax bands to decide who gets is a blunt way of working out who needs it most. 

There will be some families on low incomes living in band E homes who won’t get anything.

At the same time, some well-off households in smaller properties will get the money whether they need it or not.

People also need to be careful about how this money reaches them. 

If your bank account is overdrawn, the payment could disappear into your overdraft before you can use it for your energy bill. 

Watch out for scams

We’ve seen before that scammers are quick to pounce on government announcements, particularly on support schemes and welfare.

So we can expect criminals to take advantage of today’s announcements and start sending out fake texts and emails asking for bank details.

But your council will never text you asking for your card or PIN, so if you’re unsure, contact the council directly.

For more details on what’s been announced, check our summary of the 2026 Budget.