Over 800,000 low-income households will miss out on the £100 energy payment - here’s how to check if you’ll get it

Hundreds of thousands of low-income households will miss out on the government’s new £100 energy payment because of the size of their home.

New analysis from Policy in Practice found that 838,000 households currently claiming council tax support will not benefit from the extra support announced by the chancellor in the budget, despite struggling with the rising cost of energy bills in a larger home.

That’s because the payment is based on your council tax band, not how much money you’ve got coming in.

Who gets the £100 energy payment?

Chancellor John Healey has announced that 20 million households in council tax bands A to D in England will receive an extra £100 Household Energy Payment this winter.

If your home is in band E or above, you won’t get it, even if you’re on a low income.

If you don’t know your band, it should be on your council tax bill. You can also look it up for free on GOV.UK using your postcode.

Why are low-income families missing out?

Council tax bands are based on what a home was worth back in 1991, so they don’t tell you much about who’s struggling now.

Plenty of households on low incomes live in bigger homes because they need the space, or because that’s where they were housed. And more families are now sharing a home with grandparents or other relatives to keep costs down.

Bigger families are hit hardest. Policy in Practice found that a low-income family of five or more is 1.6 times more likely to live in a band E to H home than the average low-income household, which means over 130,000 larger, low-income households will miss out this winter.

Could I miss out even if I’m in band A to D?

Yes, if you don’t pay your council tax by direct debit.

Low-income households are more likely to pay by other methods, and some pay no council tax at all because of Council Tax Reduction, which means they’ll need to apply for the payment themselves.

So if you pay your council tax in cash, by card or not at all, keep an eye out for a letter from your council and apply as soon as you can.

What if my bank account is overdrawn?

This is something lots of people won’t have thought about. The £100 is paid into your bank account, so if you’re overdrawn, it will just reduce your overdraft, and the money goes towards existing debt rather than your energy costs.

If you’re often in your overdraft, talk to your bank about it now. Some banks will agree to reduce or freeze overdraft charges if you’re struggling. And if you’re behind on other bills too, speak to us for free debt advice.

I live in band E or above. Can I get any help?

You might. Alongside the £100 payment, the government announced £100 million for councils to target help at those hit hardest by rising energy bills, including households in higher bands that the automatic payment misses.

Contact your council and ask what help it’s offering. Each council runs its own scheme, so the support and how to apply will vary.

Are you missing out on other help?

The £100 payment is a one-off, but lots of people are missing out on much more every year. If you’ve never had a benefits check, now’s a good time. Our free benefits calculator only takes a few minutes and could show you money you didn’t know you could get.

And if your energy bills or other debts are getting too much, speak to us. Our advice is free, and we’ll help you work out what you can afford to pay.