Chancellor John Healey has announced a £100 household energy payment for 20 million homes in his first Budget on 28 October 2026, as part of a package of winter help for households facing higher energy costs. The payment was presented as direct help with bills this winter, and its headline figures — £100 and 20 million homes — are the key facts for readers checking whether they are covered.

What else changes on energy bills

The Budget also extends the temporary cut in VAT on electricity bills until July, and extends the fuel duty cut until at least July. Healey further announced that standing charges on domestic gas bills, currently adding around £108 a year, will be scrapped as soon as next year, with the Treasury saying regulators would be asked to remove them in 2027 or as soon as possible after that. Together, those steps were framed by the Chancellor as giving households breathing space while energy prices remain under pressure from the conflict in the Middle East.

An announcement, not a payment yet

This is an announcement, not a payment already made, and households should not expect the money until the winter scheme is put into operation. The gas standing-charge removal is also timed for next year, not immediately, and the precise payment date and delivery route were not set out in the Budget summaries checked. Anyone unsure about eligibility should wait for the official scheme guidance rather than assuming the payment applies to every home.

Sources: Reuters and Government Business.