How Does The £100 Energy Payment Work And When Will I Get It?

With energy bills continuing to put pressure on household budgets, the government has announced a new £100 energy payment to help millions of households with the cost of keeping their homes warm this winter.

Announced in the 2026 Budget, the one-off payment is designed to offer some financial breathing room as the cost of living continues to bite. But who can get it, when will the money arrive, and what does it mean if you're a student living in rented accommodation?

Here's everything you need to know about the £100 energy payment.

What is the £100 energy payment?

The Household Energy Payment is a one-off £100 payment announced by the government to help eligible households manage rising energy costs.

The scheme is expected to benefit up to 20 million households in England, with the money paid directly into eligible households' bank accounts through local councils.

The government has allocated £2.6 billion to the scheme, which is intended to help people manage their gas and electricity bills during the winter months.

However, it's worth remembering that £100 is a contribution towards your bills rather than a guarantee that your energy costs will fall. How much of a difference it makes will depend on your household's circumstances and energy usage.

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Who is eligible for the £100 energy payment?

The payment will be available to eligible households living in properties in Council Tax bands A to D in England.

To qualify, the property must generally be your main home, and you must meet the government's eligibility criteria. The scheme is expected to support around 80% of households in England.

Not sure which Council Tax band your home falls into? You can check using the government's official Council Tax band checker on GOV.UK.

Your band should also appear on your Council Tax bill.

It's important to note that the payment isn't available to every household. Second homes and empty properties won't qualify, and the government is still setting out the detailed eligibility rules for some circumstances.

Will students get the £100 energy payment?

If you're a student, you might be wondering whether you can get the payment too.

The answer depends on where you live and the final eligibility rules.

If you're living in university halls, you won't qualify under the scheme's current Council Tax band criteria, as student accommodation isn't generally assigned an individual Council Tax band in the same way as a residential property.

If you're renting a house or flat privately, however, you may be eligible if your home falls within Council Tax bands A to D and you meet the scheme's other requirements.

Students are usually exempt from paying Council Tax, but that doesn't automatically mean every student household will be excluded from the payment. The government has indicated that many households exempt from Council Tax will be covered, although the detailed rules still need to be confirmed.

If you're sharing a house with other students, living with a non-student or renting privately, keep an eye out for further guidance from your local council.

When will I get the £100 energy payment?

The government has announced that payments will begin from January 2027.

If you pay your Council Tax by direct debit and meet the eligibility criteria, the money is expected to be paid directly into your bank account.

If you don't pay by direct debit, you may need to follow your local council's instructions to receive the payment. Further details about the arrangements are expected to be published.

If you're a student or your household is exempt from Council Tax, it's worth checking your council's website for updates as the scheme develops.

Do I need to apply for the £100 energy payment?

If you pay Council Tax by direct debit and are eligible, you shouldn't need to make a separate application.

For other households, including people who pay their Council Tax by a different method, the process is still being clarified. Your local council should provide information about any steps you need to take.

Be cautious of unexpected emails or text messages asking you to pay a fee or provide sensitive banking details to claim your £100. Check any instructions against official government or council websites before sharing personal information.

Do I have to spend the £100 on energy bills?

The payment is intended to help with household energy costs, but it will be paid directly into your bank account rather than being applied to your energy account by your supplier.

This means the money won't automatically reduce the balance on your gas or electricity bill. You can use it to help cover your household expenses, including energy bills.

What happens if I live outside England?

The scheme was announced for England, but the government has also allocated funding to Scotland, Wales and Northern Ireland so that their devolved administrations can provide comparable support.

The arrangements may differ depending on where you live, so check your national government's announcements for the latest information.

How can students save money on energy bills?

The £100 payment could be a welcome boost, but it won't cover all your winter energy costs.

If you're renting, check whether your bills are included in your rent and understand what you're responsible for paying. If you're paying separately, comparing tariffs, reducing wasted energy and checking for other support schemes could help you manage your budget.

The £100 Household Energy Payment is expected to start reaching eligible households from January 2027. If you're a student, your accommodation and the final eligibility rules will determine whether you can receive it, so keep checking official guidance for updates.