Cost of Living Payments: What help is available in 2026/2027?

There’s no new Cost of Living Payment, but the Autumn Budget 2026 brought in a one-off £100 Household Energy Payment. It’s for households in Council Tax bands A to D in England and will be paid from January 2027. Scotland and Wales have said they’ll offer the same.

The government’s original Cost of Living Payments ended in February 2024 with the final £299 payment. But that doesn’t mean support has stopped. As well as the £100 payment, the Budget cut costs on electricity, fuel and bus fares. There’s other help too, from the Crisis and Resilience Fund to Winter Fuel Payments and Council Tax reductions.

Is there a new Cost of Living Payment for 2026/27?

Not under that name. The closest thing is the £100 Household Energy Payment, announced in the Budget on 28 October 2026. Unlike the old payments, it isn’t linked to benefits. It’s based on your Council Tax band.

⚠️ Be aware of scams: Only your council will pay the £100. Nobody else should contact you asking you to claim it. If you see texts, emails or social media posts asking you to apply for a payment, it’s likely to be a scam. The DWP never asks for bank details by text, email or phone call. Your council will write to you. Only apply through your council’s own website.

The £100 Household Energy Payment

The Household Energy Payment is a one-off £100 to help with energy costs this winter. Around 20 million households in England are expected to get it.

Who can get it

You should get the £100 if:

• you live in England in a home in Council Tax band A, B, C or D
• it’s your main home
• you’re responsible for paying the Council Tax

Most homes that don’t have to pay Council Tax are expected to be included too. You can check which Council Tax band you’re in on the Government website.

When and how it’s paid

Payments start from January 2027:

• If you pay Council Tax by Direct Debit, the money goes straight into your bank account. You don’t need to do anything.
• If you don’t pay by Direct Debit, your council will invite you to apply.
• It’s paid into your bank account rather than taken off your energy bill, so it doesn’t matter who your supplier is.

The full rules haven’t been published yet, so some details may change.

Scotland, Wales and Northern Ireland

Scotland, Wales and Northern Ireland get their own share of the funding to offer similar help. The Welsh Government has confirmed a matching £100 payment for homes in bands A to D, and the Scottish Government has said it’ll pass the payment on.

Other cost of living changes from the Autumn Budget 2026

The Budget also brought in some smaller changes to help with everyday bills.

Energy bills

• No VAT on electricity: Since 1 October 2026, household electricity bills in Great Britain have had no VAT, down from 5%. This has now been extended to July 2027. Your supplier takes it off automatically. VAT on gas stays at 5%.
• Gas standing charges to be scrapped: The daily fixed fee on gas bills will be removed by the end of 2027 or soon after. The cost will be added to the price per unit instead. The Treasury says around 6 in 10 households could save around £45 a year on average. But people who use a lot of gas could pay more, and the government has said it’ll set out support for them.

Travel

• Fuel: The temporary 5p cut in fuel duty has been extended to July 2027. The rises that were due in January and March 2027 have been pushed back to July 2027 instead.
• Bus fares: Single bus fares in England outside London will be capped at £2 throughout 2027, down from £3.

Work, benefits and pensions

• Carer’s Allowance: At the moment, carers lose all their Carer’s Allowance if they earn even 1p over £204 a week. There are plans to replace this with a gradual system, although this won’t be until 2030/31. You’ll lose £1 of support for every £1 you earn over the limit, instead of losing it all.
• Pension Tax Allowance: From April 2027, pensioners whose total income isn’t more than the full new State Pension won’t pay income tax on it in this Parliament.
• National Living Wage: This goes up 3.9% to £13.21 an hour from April 2027.

Everyday costs

• Prescriptions: In England, a prescription will stay at £9.90 until at least April 2028.
• Food shopping: Import taxes have been temporarily removed on more than 100 goods, including baked beans and chocolate. The Treasury thinks this could save families up to £21 a year, as long as shops pass the savings on.

Current support schemes available in 2026/27

Here are the main schemes running this winter, and how to get them:

(Sources: Benefits Uprating 2026/27 - House of Commons Library | Budget 2026 in full - GOV.UK

The Crisis and Resilience Fund: what’s replaced the Household Support Fund?

The Household Support Fund ended on 31 March 2026 after running since 2021. It has been replaced by a new three-year scheme, the Crisis and Resilience Fund (CRF), running from 1 April 2026 to 31 March 2029.

What the fund covers

Like its predecessor, the CRF is designed to help with:

• Food support: Vouchers, grants, or direct food provision
• Energy assistance: Help with gas, electricity, and water bills
• Essential items: Clothing, household appliances, furniture
• Housing costs: Emergency rent or mortgage assistance, including a new Housing Payment element replacing Discretionary Housing Payments
• Other necessities: Transport, hygiene products, heating fuel

The CRF also has a longer-term aim: helping build financial resilience in communities, not just responding to one-off crises.

How it works

Each council is still developing its own local delivery plan, so the details vary by area. In general:

• Support is often delivered through local Citizens Advice branches rather than the council directly
• You don't always need to be on benefits to qualify
• Payments can come as cash, vouchers, or bill credits
• Funding is discretionary, so it may run out before the end of the funding period in some areas

👉 To apply: Contact your local Citizens Advice or council directly, or search online for "Crisis and Resilience Fund [your council name]".

Each council runs its own scheme, so the details vary by area.

Winter support schemes

Winter brings its own set of costs, and its own set of schemes designed to help with them.

Winter Fuel Payment

This helps pensioners with heating costs. It’s separate from the new £100 Household Energy Payment, which is based on your Council Tax band, not your age.

Who qualifies now:

• You must have reached State Pension age. For winter 2026/27, you need to have been born on or before 27 June 1960
• You no longer need to be receiving Pension Credit or any other benefit — the payment is now paid to all pensioners
• If your annual income is over £35,000, HMRC will reclaim the payment through the tax system (via your tax code, or Self Assessment if you complete one)
• Living in England or Wales during the qualifying week (21–27 September 2026 for winter 2026/27)

How much you get:

• £200 if you're aged 66–79
• £300 if you're 80 or over

When it’s paid: Automatically, in November and December 2026. The deadline to opt out for this winter was 20 September 2026.

Warm Home Discount

This gives a £150 discount on your electricity bill during winter (October to March).

Automatic eligibility:

• People getting Pension Credit (Guarantee Credit)

Other possible eligibility (you may need to apply, particularly in Scotland):

• People on Universal Credit, Housing Benefit, or other means-tested benefits

👉 From winter 2025/26, the government removed the "high energy cost" property test completely, so eligibility is no longer based on how expensive your home is to heat — only on whether you receive a qualifying means-tested benefit. This change has now been made permanent, with new regulations extending the scheme to 2031.

Around 6 million households are expected to benefit each year, up from around 3.35 million before the change.

Cold Weather Payments

You’ll get £25 automatically if your local area has 7 days in a row where the temperature is 0°C or below.

Who qualifies:

• People on Pension Credit
• Some people on Income Support, income-based JSA/ESA, or Universal Credit (with certain conditions)
• People on Support for Mortgage Interest

When it’s paid: Payments for this winter run from 1 November 2026 to 31 March 2027.

Universal Credit and benefit support

For many households, benefits are the biggest source of ongoing support.

Universal Credit

Universal Credit gives monthly help if you’re on a low income or a single parent, whether you’re working or not.

It can include extra amounts for:

• A standard allowance (£424.90 a month for a single adult over 25 from April 2026, rising to £443.21 from April 2027)
• Children
• Housing costs
• Disabilities or long-term health conditions
• Childcare costs if you’re working

Other key benefits

• Personal Independence Payment (PIP): For people with long-term health conditions or disabilities (not linked to work status)
• Child Benefit: £27.05 a week for your first child, £17.90 for each additional child (2026/27 rates). From April 2027, this rises to £28 and £18.55.
• Carer’s Allowance: The rules are changing so earning a little over the limit no longer means losing all your support (see above).
• Working and Child Tax Credit: these closed completely on 5 April 2025. Anyone still receiving them moved to Universal Credit or Pension Credit, with transitional protection to prevent an immediate drop in income.

Council Tax support and reductions

Council Tax is one of the biggest household bills, and there's more flexibility on it than most people realise.

Automatic reductions

• Single person discount: 25% off if you're the only adult in the household
• Student exemptions: If you're a full-time student, you don't need to pay Council Tax at all, providing all people in your household are eligible students.

Income-based support

Council Tax Support (sometimes called Council Tax Reduction) can cut your bill based on things like:

• Your income
• How many children you have
• Your savings
• Your council's local rules

Each council runs its own scheme, so the criteria vary.

Local welfare and emergency support

If you need help right now rather than in the coming weeks, your council may be able to step in.

Crisis support

In many areas this is now delivered through the Crisis and Resilience Fund, though some councils still run a separate local welfare scheme alongside it — check what's available with your council.

• Food parcels or vouchers
• Essential furniture (for example, when you move into a new home)
• Emergency energy credit for prepayment meters
• Clothing grants for children or adults

Application process

• You'll usually need to show evidence of urgent need
• Some councils ask for a referral from a GP, support worker, or another professional
• Applications are often limited, e.g. once a year
• Each case is judged on individual circumstances

Energy company support

Beyond government and council schemes, your energy supplier may also be able to help directly — especially if you're struggling to keep up with bills.

Supplier hardship funds

Most big energy companies have schemes to help people in difficulty. Examples include:

• British Gas Energy Trust: Two separate funds — the Energy Support Fund for existing British Gas customers (grants typically £50–£1,700 for prepayment meter debt, or £250–£2,000 for credit account debt), and the Individuals and Families Fund, open to anyone regardless of supplier (grants typically up to £1,500–£2,000, subject to a household income or disability/carer test)
• E.ON Next Energy Fund: Financial help with bills or a replacement appliance for E.ON Next customers experiencing hardship
• Octopus Energy's Octo Assist Fund: A £40 million fund offering bill credit, standing charge waivers, free electric blankets and other support for Octopus customers most in need

Other help from suppliers

• Payment plans to spread costs
• Emergency credit for prepayment meters
• More flexible repayment arrangements for debts
• Advice on how to cut energy use and lower bills

Charitable and community support

Government and council schemes aren't the only places to turn — charities can offer both money and guidance.

National charities

• Turn2us: Benefits calculator and grant finder (covers hundreds of funds)
• StepChange: Free debt advice and help with energy debt
• Citizens Advice: Guidance with money, benefits, and applications

Food support

• Trussell Trust: Food banks across the UK (some don't need referrals)
• Local networks: Community groups, faith organisations, and mutual aid groups
• School holiday help: Many councils offer food vouchers for families during the holidays

How to access support – step by step

With so many schemes on offer, it helps to know where to start.

For immediate help

• Check your Council Tax band on GOV.UK to see if you’ll get the £100 Household Energy Payment
• Contact your local Citizens Advice or council about the Crisis and Resilience Fund or emergency help
• Check your benefit entitlements online
• Apply for Council Tax Support if you’re not already getting it
• Speak to your energy supplier about hardship funds or payment plans

For ongoing support

• Apply for Pension Credit if you're eligible (it opens the door to lots of extra help)
• Apply for Universal Credit if you're working on a low income
• Check disability benefits (PIP, DLA) if you have a health condition
• Look into charitable grants via Turn2us

For winter costs

• Look out for your £100 payment from January 2027, or a letter from your council if you don’t pay by Direct Debit
• Confirm your Warm Home Discount eligibility with your supplier if you’re on a qualifying benefit
• Check if your area has had a Cold Weather Payment using the postcode checker on GOV.UK. If you get a qualifying benefit, it’s paid automatically.
• Ask your energy supplier about winter support funds

How Cost of Living Payments worked (2022–2024)

Cost of Living Payments were brought in as an emergency measure during a very tough time when inflation and post-pandemic pressures caused the cost of living to skyrocket.

The government introduced a comprehensive support package worth over £15 billion to help the most vulnerable households through this crisis period.

Support in 2026/27 – what’s still available

The original Cost of Living Payments may have ended, but there’s still plenty of help out there if you know where to look. This winter that includes the new £100 Household Energy Payment. In fact, around £24 billion in benefits goes unclaimed every year, often because people don’t realise what they could get.

👉 Don’t rule yourself out. Even if you’re not sure you’ll qualify, it’s worth checking. Many schemes are more flexible than people think, and when you add them together, they can make a big difference to your household budget.