The key facts
- Up to 20 million households in England will receive £100 into their bank accounts from the beginning of January
- Eligibility: homes in council tax bands A–D; students in halls of residence will not receive it
- Funding: an increase in the bank corporation tax surcharge from 3% to 6% for 15 months, from 1 January 2027 to 31 March 2028
Who will receive the payment and when
Up to 20 million households in England will receive a one-off payment of £100 directly into their bank accounts this winter, the government has announced. Residents of properties in council tax bands A to D are eligible; you can check your band on the government website using your postcode. The money will be paid into the account from which the household pays its council tax, starting from January, BBC News reports.
Special cases: students and benefit recipients
Students living in halls of residence will not receive the payment, since such buildings do not fall into bands A–D. However, a student renting a private flat or house in band A–D is eligible. Because students do not pay council tax, the money cannot go into the 'usual' tax payment account — the government has tasked local authorities with deciding the delivery method and has promised to issue relevant guidance. The same mechanism applies to those exempt from council tax on other grounds or who pay the tax in cash or by other means.
Purpose and funding
The payment is not ring-fenced: the money will go straight into the account and can be spent on anything. Context provided by the BBC: the typical annual energy bill is forecast to rise by £276 in January, meaning that for many people the payment will only partly offset the increase in costs. The source of funding is an increase in the bank corporation tax surcharge from 3% to 6% for 15 months, from 1 January 2027 to 31 March 2028.
The other parts of the United Kingdom
Chancellor John Healey, announcing the measure in the budget on Wednesday, said the payment applies to England, but that funds have been allocated for Scotland, Wales and Northern Ireland, and he urged the governments of these nations to follow suit in order to 'give people of all the nations of the United Kingdom a break on their energy bills this winter'. However, the final decision rests with them: council tax is a devolved matter, and Healey has no power to extend the payment beyond England.
Image source, Getty Images 
