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England to get £100 energy payment from January

By Drooid · Oct 28, 2026 · How we work

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Summary

Chancellor John Healey announced a £100 Household Energy Payment for England households in council tax bands A-D, starting January.
Energy bills are forecast to rise by about £400 to £2,100 annually, prompting the payment.
The payment will be deposited directly into bank accounts and financed by an extra tax on banks.
Healey said the £2.6 billion package includes £450 million for Wales and funds for Scotland and Northern Ireland.

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History

In 2009, Chancellor Alistair Darling unveiled a £12 billion fiscal stimulus to counter the global financial crisis, funded partly by a new bank levy. The Treasury’s package allocated £5 billion to energy efficiency grants, while the levy generated £1.5 billion from banks such as RBS and Lloyds. Today’s £100 Household Energy Payment, financed by a £2 billion bank tax announced by Chancellor John Healey, mirrors that crisis-era approach to fund social relief. Both interventions illustrate how UK fiscal policy repeatedly leverages banking sector contributions to stabilize household costs during economic shocks, shaping future debt trajectories.

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In 2009, Chancellor Alistair Darling unveiled a £12 billion fiscal stimulus to counter the global financial crisis, funded partly by a new bank levy. The Treasury’s package allocated £5 billion to energy efficiency grants, while the levy generated £1.5 billion from banks such as RBS and Lloyds. Today’s £100 Household Energy Payment, financed by a £2 billion bank tax announced by Chancellor John Healey, mirrors that crisis-era approach to fund social relief. Both interventions illustrate how UK fiscal policy repeatedly leverages banking sector contributions to stabilize household costs during economic shocks, shaping future debt trajectories.

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