Autumn Budget 2026: £100 energy payment: 838,000 low-income households could miss out. Are you eligible?

Millions of households are set to receive a £100 energy payment this winter, but new research suggests 838,000 low-income households could miss out, despite already receiving help with their Council Tax.

The Household Energy Payment was confirmed in the Autumn Budget on 28 October, with payments starting in January 2027. Around 20 million households in England living in Council Tax bands A to D are expected to qualify.

However, new analysis published by Policy in Practice on 1 November has highlighted a significant gap in the scheme. Because eligibility is based on Council Tax bands rather than household income, thousands of families struggling with their energy bills could be excluded simply because of the property they live in.

The government has announced an additional £100 million for councils to support households missing out on the standard payment, but this doesn't guarantee that everyone excluded will receive help.

So who's missing out, how can you check whether you're eligible, and what can you do if your home is in a higher Council Tax band?

Why could 838,000 low-income households miss out on the £100 payment?

New research suggests that 838,000 households receiving Council Tax Support could miss out on the £100 energy payment because they live in properties in Council Tax bands E to H.

Analysis by Policy in Practice, published on 1 November, found that the scheme could leave some of the households struggling most with energy costs without the standard payment.

The researchers found:

• Around 838,000 low-income households receiving Council Tax Support are expected to miss out.

• More than 130,000 larger low-income households with five or more people could be excluded.

• Low-income households with five or more people are 1.6 times more likely to live in bands E to H than the average low-income household.

• Among the households identified as missing out, 84% have children, include a disabled person or live below the poverty line.

The problem is that Council Tax bands are based on historic property values rather than what people actually earn.

A family living in a larger house doesn't necessarily have more money to spend, particularly where several generations share a home or household circumstances have changed.

The government estimates that its £100 payment will reach 88% of households in the lowest three income groups, but that still leaves some people on low incomes outside the standard scheme.

The good news is that councils will receive additional funding to help households who don't qualify. However, exactly who gets that support will depend on local eligibility rules.

Who qualifies for the £100 energy payment in 2027?

The Government has confirmed that the new Household Energy Payment will be available to qualifying households in England living in council tax bands A, B, C or D.

The payment is expected to reach up to 20 million households, equivalent to around 80% of households in England.

Unlike some other government support schemes, the main eligibility criteria announced so far are based on the property's council tax band rather than exclusively on whether someone receives benefits.

This means eligible households could receive the payment even if they work full-time or don't currently claim financial support.

However, the Government has not yet published every administrative detail, including how the payment will be handled for certain council tax exemptions, shared homes or unusual living arrangements.

How do I check my council tax band?

Your council tax band is usually shown on your annual council tax bill.

If you can't find your bill, you can check your property's band for free through the Government's online service.

Visit GOV.UK's council tax band checker and search using your address or postcode.

If your home is in England and falls into band A, B, C or D, it meets the property-band condition announced for the new payment.

It's worth remembering that council tax bands are based on historic property valuations, not how much your home would sell for today or how much money you earn.

In England, the bands are based on property values as of 1 April 1991.

That means somebody living in a relatively expensive area might still be in one of the qualifying bands, while a household with a lower income living in a higher-banded property may miss out on the standard payment.

When will the £100 energy payment be paid?

The Government has confirmed that the new Household Energy Payment will start being delivered from January 2027.

The scheme is intended to help households through winter 2026–27, when heating costs are typically at their highest. However, this doesn't mean every eligible household will receive the payment on 1 January.

Local authorities will be responsible for delivering the scheme, and detailed payment schedules have not yet been published.

For now, the confirmed timetable is that payments begin in January, rather than every household receiving the money on the same date.

How will the £100 energy payment be paid?

The Government says the £100 support will be delivered through the council tax system, with the payment intended to go directly into people's bank accounts.

Local councils will be responsible for administering the scheme.

This is an important distinction from support that is simply taken off an electricity or gas bill.

A direct payment would give households more flexibility over how to use the money to help with their winter costs.

If you pay by Direct Debit: Eligible households in Council Tax bands A to D won't need to apply. Their council will pay the £100 directly into their bank account.

If you don't pay by Direct Debit: Your council will invite you to apply for the payment directly, with further details provided through official council communications.

The government has warned that nobody other than your local council should contact you asking you to claim the rebate.

Will I need to apply for the £100 payment?

Whether you need to apply depends on how you pay your Council Tax.

If you pay by Direct Debit: Eligible households in Council Tax bands A to D won't need to apply. Their council will pay the £100 directly into their bank account.

If you don't pay by Direct Debit: Your council will invite you to apply for the payment directly, with further details provided through official council communications.

The government has warned that nobody other than your local council should contact you asking you to claim the rebate.

If you receive a suspicious message asking for your banking details, don't follow the link. Check directly with your local council using its official website.

Can renters get the £100 energy payment?

The announced scheme is based on council tax bands, rather than whether you own the home.

That means renting a property doesn't automatically prevent you from qualifying.

However, the Government still needs to clarify exactly how payments will work where the person responsible for council tax is different from the person paying the energy bills.

This could be relevant to people living in shared accommodation, certain houses in multiple occupation or homes where council tax is included in the rent.

If you're renting, start by checking your property's council tax band, but don't assume the final payment arrangements are identical for every tenancy.

What if I don't pay Council Tax?

Not paying Council Tax doesn't necessarily mean you're excluded from the £100 payment.

The government has confirmed that most households exempt from Council Tax will still be eligible, provided they meet the other qualifying conditions.

However, second homes, empty properties and households where the householder isn't responsible for Council Tax won't qualify for the standard payment.

If you receive Council Tax Reduction, or your bill is reduced to zero, don't assume you're automatically excluded.

The government is expected to publish further detailed guidance covering exemptions and unusual household arrangements.

Will households in Scotland, Wales and Northern Ireland receive £100?

The confirmed £100 Household Energy Payment applies to qualifying council tax bands A to D in England.

However, the Budget also provides additional funding to the devolved governments of Scotland, Wales and Northern Ireland through the Barnett formula.

This funding is intended to enable comparable household support, but the devolved governments will determine how their own schemes operate.

That means eligibility, payment amounts and delivery dates may differ.

Households outside England should therefore check announcements from their devolved government rather than assume the English scheme applies automatically.

What if your home is in Council Tax band E, F, G or H?

If you live in Council Tax band E, F, G or H, you won't qualify for the standard £100 Household Energy Payment.

However, you may still be able to get help through your local council.

The government has set aside an additional £100 million for councils in England to support households facing particularly high energy costs, including people in higher Council Tax bands.

Councils will decide their own eligibility criteria and how residents can apply, meaning the support available could differ depending on where you live.

How to check if you can get extra energy support

If you're worried about being excluded from the £100 payment:

• Check your Council Tax band using the free GOV.UK checker.

• Visit your local council's website and look for information about the Household Energy Payment or discretionary energy support.

• Check whether your household qualifies for the £150 Warm Home Discount.

• Contact your energy supplier if you're struggling to pay your bills. They may be able to offer an affordable repayment arrangement or other support.

You don't have to wait until January to ask for help with your energy bills.

The additional £100 million is intended to help councils support households who would otherwise miss out, but it doesn't mean every household in bands E to H will automatically receive £100.

Is the £100 payment only for people on Universal Credit or Pension Credit?

No. The main payment announced for England is linked to council tax bands A to D, rather than being restricted to people receiving Universal Credit or Pension Credit.

The Government estimates that the scheme will reach 88% of households in the lowest three income deciles.

It also estimates that 83% of fuel-stressed households in England will be covered.

For people managing their money on a tight budget, this matters because some households struggle with energy costs even if they aren't eligible for means-tested benefits.

The new payment is intended to reach a wider group of households, although it won't cover everybody.

Is the £100 payment on top of the electricity VAT cut?

Yes. The Household Energy Payment is a separate measure from the Government's decision to extend its temporary VAT reduction on domestic electricity.

The Government removed VAT from qualifying domestic electricity supplies in Great Britain from October 2026 and has now confirmed that the relief will continue until July 2027.

The Chancellor says this is expected to reduce the annualised Ofgem energy price cap by around £50 in April 2027, compared with what it otherwise would have been.

That doesn't mean every household will receive another £50 in cash.

The VAT measure works through electricity prices, while the Household Energy Payment is intended as direct financial support.

The £50 figure is also an annualised comparison, so it shouldn't be treated as a guaranteed £50 reduction in every household's actual bills.

Watch out for £100 energy payment scams

Whenever a new government payment is announced, there's a risk that scammers will try to take advantage of people looking for financial help.

A message claiming you're entitled to £100 can sound convincing, particularly if it refers to the Autumn Budget or your local council.

But don't assume a text message, email or social media advertisement is genuine simply because it mentions the new payment.

Be particularly cautious if you're asked to follow an unfamiliar link, pay a processing fee or provide sensitive banking details to release your money.

If you're unsure about a message, go directly to your local council's official website rather than using the link you've been sent.

And remember, the final payment procedures haven't yet been published, so claims that you must register immediately should be treated with caution.

What should you do now to prepare for the £100 payment?

You don't need to make any changes to your energy tariff or switch providers because of the Household Energy Payment announcement.

There are, however, a few useful things you can do:

• Check your council tax band. You can find this on your council tax bill or through GOV.UK.

• Make sure your council has your correct contact details. This can help avoid problems with future correspondence.

• Keep an eye on official council announcements. Local authorities will be responsible for delivering the payment from January.

• Check other energy support you're entitled to. The £100 payment is separate from existing assistance, including the Warm Home Discount.

• Contact your energy supplier if you're struggling. You don't have to wait until January to ask about affordable repayment arrangements or available support.

If you're worried about energy debt, Citizens Advice provides free information about your rights and the support available.