Councils to get £100m to help bands E to H households left out of the £100 energy payment

Households in higher council tax bands who will miss out on the new £100 energy payment are to get some help after all, through £100 million of extra funding for councils to give targeted support.

The £100 payment, announced in Chancellor John Healey's Autumn Budget, is due to be paid in January to households in council tax bands A to D in England. Up to 20 million households are expected to benefit.

Help for bands E to H

The government has now confirmed what will happen for households in bands E to H who are struggling with their bills.

It said: "We know that not all households struggling with their energy bills live in bands A to D. That's why we're providing an additional £100 million for local authorities to provide discretionary support to these households who are not eligible for the £100 rebate."

Discretionary support means councils, including Birmingham City Council, will decide how to target the money locally. Details of how to apply, and who qualifies, will be set by each council.

The government also pointed out that people on means-tested benefits may be eligible for the £150 Warm Home Discount.

A familiar approach

The consumer website Money Saving Expert said the £2.6 billion scheme mirrors the £150 council tax rebate introduced during the energy crisis in 2022. Then, as now, councils were given a separate pot of discretionary money for households outside the main bands.

Funding has also been allocated to Northern Ireland to run a similar scheme, though the Northern Ireland Executive has said it will "consider" how to use it.

What it means in Birmingham

Most homes in Birmingham are in the lower council tax bands, so the majority of households in the city should qualify for the £100 payment automatically. For those who pay council tax by direct debit, previous schemes of this kind have been paid straight into bank accounts.

For those in bands E to H, the advice is to watch for an announcement from the council about its discretionary scheme once the money is allocated, rather than to apply anywhere now.

A note of caution

The payment is welcome, but experts say it will only go so far. Kevin Brown, savings specialist at Scottish Friendly, said the £100 payment "will help with immediate bills" but warned that "support may only go so far" while global pressures keep energy prices high.

Anyone worried about paying for heating this winter can also contact their energy supplier, which must offer help such as payment plans, or seek free advice from Citizens Advice.

Be alert to scams too: councils and the government will not cold-call or text asking for bank details to release the £100 payment.