Energy is one of the biggest strains on household budgets. Alongside grants to make your home cheaper to heat, there’s a set of schemes and protections aimed squarely at helping with the bills themselves — and some are paid automatically if you qualify.
Budget 2026: what changes for energy bills
The Budget on 28 October 2026 announced these changes to household energy bills. For the wider picture, including wages, savings and home upgrades, read our report: Budget 2026: what it means for your bills and household finances.
- £100 Household Energy Payment — from January 2027, a £100 payment for households in England that pay council tax on their main home in council tax bands A to D. If you pay council tax by direct debit you don’t need to do anything — it goes straight into your bank account. Other eligible households will be invited to apply by their council. Councils also get an extra £100 million to help households outside bands A to D, and Scotland, Wales and Northern Ireland get funding to decide their own support.
- No VAT on household electricity until July 2027 — VAT on household electricity was cut from 5% to 0% on 1 October 2026, and the Budget extended this to July 2027. VAT on gas is unchanged.
- Gas standing charges to be scrapped — the government has asked Ofgem to remove the standing charge from household gas bills, aiming for the end of 2027 or as soon as possible after. The cost moves into the unit rate, so lower gas users are likely to pay less and higher users more; help for high users who can’t cut their use is to be set out later. Electricity standing charges will be reformed, with details due next year.
- Energy Debt Circuit Breaker — one-off debt relief for vulnerable households (on means-tested or disability benefits, or of pension age) who built up energy debt after the 2022–24 energy crisis and work with their supplier to tackle it. Ofgem will consult on the final design, so there is nothing to apply for yet.
- Warm Home Discount — a £150 one-off discount on your electricity bill over winter for eligible low-income households. It’s usually applied automatically if you qualify.
- Cold Weather Payment — £25 for each seven-day spell of freezing weather in your area, for people on certain benefits.
- Winter Fuel Payment — a payment towards heating costs for people over State Pension age. From winter 2025–26 it’s paid more widely, but recovered through the tax system from anyone with an income over £35,000.
The energy price cap
If you’re on a standard variable tariff, Ofgem’s price cap limits what you pay per unit of gas and electricity and the standing charge. It changes every three months, so your bill can move up or down through the year. The cap limits unit rates — it isn’t a cap on your total bill, which still depends on how much you use. Standing charges are set to change — see Budget 2026: what changes above.
Extra help and protection
If you’re of pension age, disabled or have a health condition, join your supplier’s free Priority Services Register — it brings extra support such as advance warning of power cuts, priority reconnection and help reading your meter. If you’re behind on your energy bills, your supplier must work with you on an affordable payment plan, and many run hardship funds or trust funds that can help clear arrears. You should never be left unable to top up a prepayment meter without support.
What to do next
Ask your supplier about the Warm Home Discount, the Priority Services Register and payment help. To make your home cheaper to heat in the first place, see the grants on our Grants and funding hub and our suppliers, bills and meters page.
Sources
GOV.UK (Warm Home Discount, Cold Weather Payment, Winter Fuel Payment); Ofgem (energy price cap; Priority Services Register); HM Treasury, Budget 2026 (Section 1, “Energy bills”, and Table 6.1); Department for Energy Security and Net Zero, “What the Autumn Budget 2026 means for your energy bills” (28 October 2026). Reviewed: 28 October 2026.