Millions of households across the UK are set to receive a £100 payment this winter to help mitigate the impact of rising energy costs, Chancellor John Healey announced during Wednesday’s Budget.
The significant support package, valued at £2.6 billion, is aimed at providing “breathing space” for families as they head into the coldest months of the year. The payment will be directed at 20 million households currently living in council tax bands A through D.
Addressing the House of Commons, Mr. Healey acknowledged the widespread anxiety surrounding high energy bills. “I know rising energy bills are a real worry and people look to government to give them a bit of breathing space,” the Chancellor stated. “So this winter for 20 million households in council tax bands A to D, I am announcing a £100 energy payment.”
While the funding is guaranteed for households in England, the Chancellor confirmed that the devolved administrations in Scotland, Wales, and Northern Ireland will receive their proportional share of the funding. He issued a direct appeal to these governments, urging them to mirror the scheme to ensure equitable support for citizens across the entire United Kingdom.
Beyond the immediate £100 cash injection, the Chancellor also unveiled a long-term structural change to energy billing. Mr. Healey announced plans to scrap standing charges on gas bills, which he described as “unfair and outdated.” Currently, these fixed daily charges are levied regardless of a customer’s actual energy consumption, adding an average of £108 a year to a typical household bill.
The government has instructed the industry regulator, Ofgem, to oversee the removal of these charges, with an aim to implement the change by 2027 or as soon as practically possible. Under the new model, the costs currently covered by the standing charge will be redistributed onto the unit rate. Estimates suggest this shift could provide an average annual saving of £45 for roughly 60% of account-holding households.
“My Budget will draw a line in the sand on an energy policy that has failed British billpayers for years, letting extra costs on bills pile high and leaving households even more exposed to global shocks,” Mr. Healey said during his address.
The combined measures represent a strategic move by the Treasury to curb the ongoing cost-of-living crisis. For those uncertain about their eligibility for the winter payment, the government has advised residents to verify their council tax band via the official government portal. As the winter season approaches, this intervention is expected to be a critical lifeline for millions struggling to balance their household budgets against high utility demands.
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