Council Tax £100 Payment: How to Claim Your Free Cash in 2027

Millions of households across the UK are set to receive a FREE £100 payment to help with rising energy bills, following a major announcement in the Autumn Budget 2026.

The government has confirmed that approximately 20 million households in England living in Council Tax bands A to D will qualify for the new Household Energy Payment, with payments beginning in January 2027.

Even better, if you already pay your Council Tax by Direct Debit, you should receive the money automatically without needing to apply!

However, if you pay your Council Tax another way, you may need to take action to receive your £100.

Here's everything you need to know, including who qualifies, when you'll receive the money and how to check your eligibility.

What Is the £100 Council Tax Payment?

The £100 Household Energy Payment is a new government support scheme announced in the Autumn Budget on 28 October 2026.

It's designed to help households cope with rising gas and electricity costs over the winter.

The government has allocated approximately £2.6 billion towards the scheme, with up to 20 million households in England expected to benefit.

Although the payment is being distributed through the Council Tax system, it's intended to help with energy costs rather than simply reduce your Council Tax bill.

The payment is:

• £100 per eligible household, not per person.
• Available to qualifying households in Council Tax bands A, B, C and D.
• Due to start being paid from January 2027.
• Automatically paid to eligible households that pay Council Tax by Direct Debit.
• Available to eligible households that use other payment methods, although they may need to apply.

You don't need to be receiving benefits to qualify.

Who Qualifies for the £100 Payment?

To qualify under the main scheme in England, your property must generally meet the following conditions:

1. Your home is in Council Tax band A, B, C or D.
2. You live at the property as your main residence.
3. You're responsible for the Council Tax on the property, unless an eligible exemption applies.

The government has confirmed that most households exempt from Council Tax will also be included, although further details are expected.

Here's a quick overview:

Subject to the full eligibility rules and property requirements.

If you're in bands E to H, you may still qualify for separate discretionary support from your local council.

How to Check Your Council Tax Band

Not sure which Council Tax band your home is in?

You can check for FREE using the government's official online checker.

Check your Council Tax band on GOV.UK

Simply enter your postcode and find your property.

If you're in England and your home is listed in bands A, B, C or D, you could qualify for the £100 payment.

You can also find your Council Tax band on your annual Council Tax bill.

How to Claim Your £100 Council Tax Payment

The way you'll receive your money depends on how you currently pay your Council Tax.

Option 1: You Pay by Direct Debit

This is the easiest option.

If you live in an eligible property and already pay your Council Tax by Direct Debit, your council should have the bank details needed to make the payment.

You won't need to apply.

The £100 will be paid directly into your bank account, with payments beginning from January 2027.

There's no need to contact your council at this stage.

Option 2: You Don't Pay by Direct Debit

If you pay your Council Tax manually, by standing order or using another payment method, you can still qualify.

However, you'll need to provide your payment details to your local council.

The government has confirmed that councils will invite eligible households to apply for the payment directly.

Exact application processes and deadlines haven't yet been announced.

For now, the best approach is to check your Council Tax band and keep an eye on official announcements from your local council.

Important: Don't give your bank details to anyone claiming to offer early access to the £100 payment. Only use verified council websites and communications.

When Will the £100 Be Paid?

The government has confirmed that payments will begin in January 2027.

However, this doesn't mean every eligible household will receive their money in January.

Local councils will be responsible for distributing the payments, and processing times may vary.

There's currently no confirmed nationwide deadline for claiming the money.

We'll update this guide when further information becomes available.

Can You Get the £100 If You Rent Your Home?

Yes, renters can qualify.

The key factor is generally whether you live in an eligible property and are responsible for its Council Tax.

For example, if you rent a flat in Council Tax band B and pay the Council Tax yourself, you should qualify under the main rules.

However, if your landlord pays the Council Tax, or you live in a house share where someone else is responsible for the bill, your eligibility may be different.

The government has stated that households where the householder isn't responsible for Council Tax won't normally qualify.

What If You're a Student or Exempt From Council Tax?

You could still receive the £100.

The government has confirmed that most households exempt from Council Tax will be included in the scheme.

This could include certain student households that don't pay Council Tax because of an exemption.

However, the full eligibility criteria and arrangements for paying exempt households haven't yet been published.

If your household is exempt, don't assume you'll miss out simply because you don't have a Council Tax payment to make.

Wait for your local council's official instructions.

What If You Receive Council Tax Reduction?

If you're on a low income and receive Council Tax Reduction, you may still qualify for the £100 payment.

The scheme is based primarily on Council Tax bands and household eligibility rather than a specific earnings threshold.

However, the government has yet to publish full guidance covering every circumstance, including households whose Council Tax bills are reduced to £0.

We'll update this section when the rules are confirmed.

What If You're in Council Tax Bands E to H?

Households in higher Council Tax bands won't automatically qualify for the main £100 payment in England.

However, there's some additional help available.

The government has announced £100 million in extra funding for local councils to support households particularly affected by rising energy bills.

This could include people living in Council Tax bands E, F, G or H.

Local councils will have discretion over how this additional support is distributed, so eligibility and payment amounts may vary.

Will Households in Scotland, Wales and Northern Ireland Get £100?

The main Household Energy Payment scheme covers England, but the devolved governments have also received funding to provide support.

For households outside England, it's important to check the announcements and eligibility rules issued by your own government.

We'll update this guide as further details become available.

Why Is the Government Giving Households £100?

The payment has been introduced in response to rising household energy costs.

Energy prices are expected to increase significantly during winter 2026/27, putting additional pressure on household budgets.

The government says the £100 payment is intended to provide direct financial assistance to households during this period.

It's similar in principle to the £150 Council Tax rebate introduced in 2022 during the previous energy crisis.

The new scheme is focused primarily on properties in Council Tax bands A to D, which account for a large proportion of homes in England.

Other Energy Bill Support Available in 2026/27

The £100 payment isn't the only help being introduced.

£150 Warm Home Discount

Eligible households receiving certain means-tested benefits may qualify for the £150 Warm Home Discount.

This is normally applied as a reduction to electricity bills rather than paid directly into your bank account.

Depending on eligibility, you may be able to receive both the Warm Home Discount and the new £100 Household Energy Payment.

Electricity VAT Cut Extended

The government has also extended the temporary 0% VAT rate on qualifying domestic electricity supplies until July 2027.

The extension is expected to reduce the annual energy price cap by approximately £50 from April 2027, based on government forecasts.

This is separate from the £100 cash payment.

Extra Council Support

Local authorities in England will receive additional funding to help households facing particularly high energy costs.

If you're struggling with your bills but don't qualify for the £100 payment, it's worth checking what support your council offers.

Final Thoughts

The new £100 Household Energy Payment is welcome news for millions of households facing higher energy bills.

With approximately 20 million households expected to qualify in England alone, it's one of the biggest direct household support measures announced in the Autumn Budget 2026.

Our advice is simple: check your Council Tax band now.

If you're in bands A to D and already pay by Direct Debit, you should receive the money automatically when your council begins making payments.

If you pay another way, keep an eye out for official instructions so you don't miss out.

We'll continue updating this guide as councils release more information about payment dates and applications.

Looking for more ways to save or make extra money? Check out our Free Money offers for the latest UK sign-up bonuses, cashback rewards and money-saving opportunities.

Information correct as of 2 November 2026. Payment arrangements and some eligibility details are still being finalised. Always check official government and local council guidance before providing personal or banking details.