Chancellor Healey Announces £100 Energy Payment for Households

Scottish Government confirms plan to mirror energy payment scheme

The Scottish Government confirmed it will replicate the £100 energy payment for households. This follows an announcement from Chancellor John Healey, who urged the Scottish Government to match the payment.

The UK government is providing funding to the devolved administrations of Scotland, Wales and Northern Ireland to encourage them to implement the same measure. The Scottish government plans to mirror the scheme introduced by the chancellor.

Eligibility restricted to council tax bands A to D

These households will receive the payment next year under the 2026 Budget.

Households can verify eligibility using a government postcode checker. Some users reported technical issues with the service on Wednesday.

Critics noted that the council tax banding system relies on valuations from 1991. They said these figures may not reflect property price inflation over the last three decades.

Bank surcharge increase funds £2.6 billion rebate scheme

The government will spend £2.6 billion on the Household Energy Payment scheme. This program provides automatic rebates directly to the bank accounts of eligible households.

To fund the cost, the government will increase the Bank Surcharge by three percentage points. The rate will rise from five percent to eight percent for a 15-month period starting in January.

Chancellor John Healey said the war in Iran triggered economic challenges by increasing oil and gas prices.

Ofgem tasked with removing gas standing charges by 2027

Healey confirmed that the government will remove gas standing charges starting next year. The regulator Ofgem has been asked to remove these fees for approximately 23 million homes by 2027 or as soon as possible.

This change will save 60 percent of households an average of £45 on annual bills. The Chancellor also said he will explore removing fixed daily fees for electricity.

Additional £100 million allocated for council crisis support

The government will allocate an additional £100 million to councils in the new year. This funding provides assistance for housing and crisis support.

Scottish government and agricultural groups voice budget concerns

The National Farmers Union, Scotland, warned that the UK Budget did not take the opportunity to support the country's food producers. The Scottish Government stated the budget must reverse upcoming funding cuts for Scotland.

The Fraser of Allander Institute also released a reaction to the 2026 UK Budget.