20m households to get £100 energy cash as council tax site crashes

Chancellor John Healey has confirmed that 20 million households will receive a £100 payment this winter to help navigate soaring energy bills. According to the BBC reported ^[2], the money will be paid directly into bank accounts for those living in council tax bands A to D. The scheme is part of a wider £2.6 billion package announced in the Budget, designed to provide breathing space during the coldest months.

The announcement triggered immediate interest, with the Daily Mail noting ^[4] that the government’s council tax checker website crashed as millions raced to verify their eligibility. The payment is automatic for qualifying households, meaning most recipients will not need to apply. However, those in bands E to H will miss out on this specific cash injection.

Speaking in the House of Commons, the Guardian reported ^[3] that Healey blamed the ongoing war in the Middle East for the economic deterioration, stating that Britain faces “global economic storms” rather than mere headwinds. He acknowledged that rising oil and gas prices were driving inflation and increasing household costs. The Office for Budget Responsibility has downgraded growth forecasts to 1% for next year, citing the conflict’s impact.

To fund the relief, banks will pay an extra 3% on the Bank Surcharge for 15 months, starting in January. The Independent noted ^[5] that Healey praised the banking sector’s contribution but insisted they must help fund the support for families. Additionally, the Mirror reported ^[2] that the temporary scrapping of VAT on electricity bills will be extended from next March through to July, saving the average customer around £50 a year.

Significant reforms to how energy is billed are also underway. Healey has ordered Ofgem to remove gas standing charges, which account for roughly £108 on average annual bills, and shift costs to the unit rate. This means heavy users will pay more, while light users save. The Guardian added ^[3] that the government plans similar reforms for electricity standing charges, which add around £200 to the average bill.

Despite these measures, concerns remain for winter. The Ofgem price cap is forecast to leap by 27%, or nearly £470 a year, to almost £2,100 from January 1. The reforms to standing charges will not benefit bills this winter, leaving many households exposed to the surge. Consumer champion Martin Lewis had been pressing for such measures ahead of the Budget, according to the Mirror ^[2]. Healey also confirmed the cancellation of fuel duty rises previously pencilled in by his predecessor, Rachel Reeves, as part of his fiscal discipline strategy.