What the Autumn Budget 2026 changes mean for energy bills

The Autumn Budget 2026 has announced measures to ease pressure on household energy bills, including a £100 payment for eligible households, plans to remove gas standing charges, and support for people struggling with energy debt

The measures are designed to provide short-term financial relief while tackling the wider causes of high energy costs over the coming years.

£100 payment for eligible households

Households in England living in properties within Council Tax bands A to D could receive a £100 Household Energy Payment to help cover rising energy costs.

The scheme is expected to benefit up to 20 million households, with payments due to begin in January 2027.

To qualify, residents must be liable for Council Tax on their main home and live in the property. Second homes, empty properties, and households where the resident is not responsible for Council Tax are not eligible.

People who pay their Council Tax by direct debit will be charged automatically. Those who do not pay by direct debit will be invited to apply through their local council.

Households outside the eligible Council Tax bands may still access help through an additional £100 million in discretionary funding for local authorities.

Gas standing charges set to be removed

The government has asked energy regulator Ofgem to remove standing charges from household gas bills as early as 2027.

Standing charges are fixed daily fees that households pay regardless of how much gas they use. Removing them could benefit people who use relatively little gas, particularly those with low heating needs.

However, the costs currently covered by standing charges will be transferred to the unit price of gas. This means households that use more gas could see different results, depending on their consumption.
The government has also promised to introduce targeted support for some vulnerable households with high gas usage.

Help for households in energy debt

People struggling with energy debt could benefit from a new Debt Relief Scheme offering targeted, one-off debt write-offs.

Eligibility is expected to include households where the billpayer receives means-tested or disability benefits, or is a pensioner, and has accumulated energy debt since the 2022–24 energy crisis.

To qualify, households will need to re-engage with their energy supplier and take steps towards addressing their debt. Ofgem is expected to consult on the scheme’s final design.

Further measures to reduce bills

The government is extending the removal of VAT from household electricity bills until July 2027, after introducing it on 1 October. The measure is expected to save households an average of £45 a year.

Longer-term plans include expanding homegrown clean energy, reducing reliance on volatile international gas markets and reforming the electricity system. The government aims to bring UK energy costs into line with European levels within 10 years.

While the £100 payment is expected from January 2027, several measures still need more detail before households can access them.

Residents should check their Council Tax band, monitor their local council’s website for eligibility updates and look into existing support, including the Warm Home Discount, if they are struggling with energy costs.