Around 20 million households across the UK will get a £100 discount from their energy bills this winter, chancellor John Healey has confirmed at the Autumn Budget, reports BritPanorama.
The help will grant certain households an automatic rebate directly to their bank accounts, the chancellor said, a measure that will cost the government £2.6 billion.
However, only households in council tax bands A to D will qualify for the payments.
During his Budget speech, Mr Healey remarked: “Let me say this to families at home. I know that with the conflict in the Middle East, rising energy bills are a real worry. 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.”
He continued, “So today I’m taking one further step. This winter, for 20 million households in council tax bands A to D, I am announcing a £100 energy payment for households, paid directly into people’s bank accounts to deal with rising energy bills.”
“That’s a £2.6 billion scheme to take the pressure off in the coldest months and see people through to the spring.”
Additionally, the chancellor stated that funding would be made available to the devolved administrations of Scotland, Wales, and Northern Ireland, encouraging them to adopt the same measure.
Mr Healey framed his Budget presentation within the context of “global uncertainties and pressures are swirling worldwide and hitting people here in Britain.” He acknowledged that the impact of the war in Iran has contributed to economic difficulties, propelling inflation due to higher oil and gas costs.
To finance this new energy bill policy, the government will introduce an additional 3 percent on the Bank Surcharge starting in January, lasting for 15 months. Mr Healey remarked that the UK’s world-leading banks “make a huge contribution to this country, in the tax they pay, in the jobs, industry, and investment they support.”
However, he stressed that in light of the current global economic storms, he was seeking their assistance in providing breathing space for British families.
How to check your council tax band
Households can verify their eligibility for the £100 energy bill payment using the government’s own postcode checker, although the service went offline following the Budget announcement.
The payment relates to households in the first four of the eight possible council tax bands, A to I, tied to property value. Nonetheless, there has been substantial criticism regarding the current system, given that the last comprehensive valuation took place in 1991.
In light of these developments, the government’s response underscores the pressing need for fiscal measures amid evolving economic challenges, a scenario that continues to develop.
