The £100 Household Energy Payment: how Huggg can help councils pay it this winter

The £100 Household Energy Payment is a one-off payment announced in the UK Budget on 28 October 2026. Councils in England will pay it from January 2027 to around 20 million households in council tax bands A to D. This guide explains how councils can pay residents who don't pay council tax by direct debit, including people without a bank account, using Post Office cash and direct bank payments on Huggg.

Here are a few key facts about the £100 Household Energy Payment

Amount: £100 per household.
Who qualifies: households in council tax bands A to D in England.
Who pays it: councils, recipients identified through the council tax system.
When: from January 2027.
Extra support: £100 million for councils to support people who don't qualify but are hit hardest by energy costs.

What we know so far

The Chancellor announced the payment as part of a package of measures to help households with energy costs this winter, alongside removing gas standing charges from 2027 and extending VAT relief on electricity. Of these, the £100 payment is the one that lands directly with councils.

The payment will go through the council tax system. For households who pay council tax by direct debit, that should be straightforward, because the council already holds their bank details and can pay them automatically. For everyone else, the council will need to collect bank details first, and that's where most of the work is likely to sit.

There's also £100 million for councils to support people who don't qualify for the payment but are struggling most with energy costs. That's likely to resemble other discretionary support, with councils deciding who to help and how much to give.

The government hasn't published detailed guidance for councils yet. The exact date payments can start is not known, how councils should handle households who don't come forward, how long the payment will stay open for claims, or how the £100 million will be shared between councils. 

Councils have done something very similar before. In 2022, the £150 Council Tax Energy Rebate went to households in bands A to D, and it was paid the same way. Direct debit payers received it automatically. Other households had to apply with their bank details, and council teams spent months chasing people who hadn't responded.

The households that were hardest to reach then are likely to be the hardest to reach this time. They include residents who pay council tax by cash or card, people who don't have a bank account, and people who don't respond to letters or online forms. 

How Huggg can help

Huggg gives councils three ways to pay residents who can't be paid automatically, all within the same platform.

The first is Post Office cash. The council sends the resident a voucher by email or text, or sends a printed letter or voucher. The resident takes it to a Post Office branch and collects the cash. They don't need a bank account or any ID. £100 is one of the amounts already set up on Huggg, so the full payment can go as a single voucher.

The second is Bank Payments using faster payments via Huggg. If the council already holds a resident's bank details, Huggg users can pay straight into the resident's account - no online or mobile banking needed. If the council doesn't hold their details, it can send a secure link the resident uses to choose the account they'd like to be paid into, so the council doesn't need to collect or store their bank details at all.

Lastly, a Digital Cheque combines those two approaches - a link that allows a resident to choose; they can claim it into their chosen bank account or go to the Post Office and collect cash for the same amount. 

Councils can use both together. A council could send links to residents who haven't given their bank details, and Post Office cash to residents who don't have a bank account. The same options also work for the £100 million discretionary support, whether that's helping someone who just misses out on the £100 payment or someone struggling with a large energy bill.

Getting ready before January

Access to Post Office cash and Bank Payments on Huggg needs a short verification process, which usually takes a few working days once we have your completed forms. With payments due to start in January, it's worth getting set up now so your team is ready when the guidance lands. Email disbursements@huggg.me to find out how.
 

Here are a few key questions answered:

Can a council pay the £100 energy payment to someone without a bank account?
Yes. A council can send a £100 Post Office cash voucher through Huggg. The resident collects the cash at a Post Office branch, with no bank account or ID needed.

Can vouchers be printed?
Yes. For people who don't have a mobile phone your team can print Post Office vouchers to post.

Can you make bank payments without bank details?
Yes. Your team can send a secure link that lets a resident choose the bank account they'd like to be paid into, so the council doesn't need to collect their bank details.

What is a Huggg Digital Cheque?
A digital cheque is a link that allows the resident to choose between a bank account (no details needed) and Post Office cash over the counter. 

Can bulk payments be made?
Yes, you can upload CSV files for bulk payments in Huggg, making it just as easy to send one or several thousand payments at the same time.

Get set up with Huggg
Huggg is a payments and voucher platform used by councils and charities to get money to residents quickly. To ask how to get set up with Post Office cash and Bank Payments, email disbursements@huggg.me or visit payments.huggg.me.