What the Autumn Budget 2026 means for your energy bills
The Autumn Budget will create breathing space for families with the cost of living.
Energy bills have risen this year due to the conflict in the Middle East.
The Autumn Budget will create immediate breathing space for families with the rising cost of living, while helping households to control costs in the longer term by committing to take standing charges off gas bills and supporting households struggling with energy debt.
We will also commit to driving down energy costs so that they are in line with Europe within 10 years, through market reform.
Here’s what you need to know.
Household Energy Payment
What is the Household Energy Payment?
The Household Energy Payment will provide a £100 payment to households in Council Tax bands A to D in England, to help with their energy costs.
Up to 20 million households will be eligible, including an estimated 83% of fuel stressed households in England, and 88% of households in the bottom three income deciles.
The payments will be made from January 2027.
Who is eligible?
Households in England are eligible for the Household Energy Payment if they are liable for council tax on, and live in, a property in council tax bands A to D as their main home.
This will include most households exempt from council tax, with full eligibility criteria to be published in due course.
Second homes, empty properties or households where the householder isn’t responsible for paying council tax are not eligible.
How do I find out what council tax band I’m in?
You can check by visiting Check your Council Tax band.
Do I need to do anything to claim the rebate?
If you pay by direct debit and live in bands A to D, you don’t need to do anything – the rebate will be paid directly into your bank account.
If you don’t pay by direct debit, your council will invite you to apply for the rebate directly.
Nobody other than your council should get in touch asking you to claim the rebate. Only give out your personal information if you are certain it is your local council contacting you. If you’re unsure whether a message is genuine, double check with your council.
What about households in Northern Ireland, Scotland and Wales?
The scheme will apply in England. Scotland, Wales and Northern Ireland will receive additional funding, and their governments will decide how best to use it to provide similar support based on local needs.
What if I’m not eligible, but need support with my energy bills?
We know that not all households struggling with their energy bills live in bands A to D.
That’s why we’re providing an additional £100 million for local authorities to provide discretionary support to these households who are not eligible for the £100 rebate.
If you receive means-tested benefits, you may also be eligible for the £150 Warm Home Discount. You can check if you’re eligible here: Warm Home Discount Scheme: Overview - GOV.UK
How can I apply for support from my council’s discretionary fund?
Local councils will be responsible for setting their eligibility criteria for the discretionary fund and making sure it benefits households who most need support.
Your local council will make information on eligibility and how you can apply available on their website, once local arrangements are in place.
If you are unsure, please contact your local council directly. You can check who your local council is by visiting Find your local council.
Standing charges
What are standing charges and how are you changing them?
Standing charges are fixed costs in energy bills that don’t change no matter how much energy you use. They pay for essential costs in the energy system.
We know many families, particularly those who are low energy users, feel they are unfair.
That’s why we’ve asked the energy regulator Ofgem to remove standing charges on households’ gas bills as early as 2027.
Will this bring down my energy bills?
The typical household on median gas consumption will benefit from this change.
It means if you heat your home using gas and you are a low energy using household, your energy bills are likely to be reduced as a result of this measure when it is introduced.
The essential costs which standing charges go towards still need to paid in some way. They will move to the unit rate in your energy bill, meaning how much you pay overall depends on your energy use.
I am a high gas user – how will this affect me?
Our action to take VAT off electricity bills and take an average £150 off bills at the Autumn Budget in 2025 will have particularly benefited higher users of energy.
But we know there are some vulnerable households who use high amounts of gas, which they can’t avoid.
That’s why we will set out targeted mitigation for some households in due course.
Energy debt circuit breaker
I’m in energy debt – what are you doing to support me?
In the short term, we will provide targeted, one-off debt relief for vulnerable households, provided they re-engage with their supplier through the Debt Relief Scheme.
And in the longer term, we will tackle the root causes of energy debt and take practical steps to prevent debt building up again.
Will I be eligible for support through the Debt Relief Scheme?
If the energy billpayer in your household is on means-tested benefits, disability benefits, or is a pensioner, and you have built up debt since the energy crisis of 2022-4, you will be eligible to have your debt written off through the Debt Relief Scheme, provided you take steps to re-engage with paying your debt.
Ofgem will shortly consult on the final design of the scheme, and will provide an update as soon as possible.
Broader energy bill support
What else are you doing to help on energy bills now and in the long-term?
On October 1, we removed VAT from household electricity bills, saving households an average of £45 a year. We’re extending that VAT cut until July 2027 to continue giving breathing space to households on their bills.
But we also need to tackle the root causes of high energy costs. That means building more homegrown, clean energy so that expensive gas sets the price of electricity less often, reducing Britain’s exposure to volatile international gas markets.
Alongside this, we are reforming the energy system to bring down costs for good – including through greater public control such as via Great British Grid, which will help accelerate the delivery of the electricity network infrastructure Britain needs to help clean power bring down bills.