UK Budget 2026: Households in Scotland to benefit from £100 energy payment
The UK government Budget has focused on cutting energy bills
Households in Scotland will benefit from a £100 energy bill payment announced by Chancellor John Healey, it has been confirmed.
The Scottish government said it will replicate the policy north of the border, but warned it falls far short of the action which is required.
It said the UK Budget will deliver a real terms cut in Scotland’s budget of around £650 million in 2027/28.
Mr Healey said the £100 support would be paid directly to the bank accounts of households in council tax bands A to D in England at a cost of £2.6 billion.
He called on John Swinney’s government to “do the same” to “give people of all nations in the UK breathing space on their energy bills this winter”.
Speaking in the Commons, the Chancellor said: “Let me say this to families at home. I know that with the conflict in the Middle East, rising energy bills are a real worry.
“I know that people look to government at times like this, not to solve all their problems, but to give them a bit of breathing space.
READ MORE: Budget 2026 LIVE: Chancellor John Healey's spending plans and what they mean for Scotland
“So today I’m taking one further step. This winter, for 20 million households in council tax bands A to D, I am announcing a £100 energy payment for households, paid directly into people’s bank accounts to deal with rising energy bills.
“That’s a £2.6 billion scheme to take the pressure off in the coldest months and see people though to the spring.”
SNP ministers immediately came under pressure to follow suit.
Scottish Labour leader Michael Marra said: “Over 1.8 million households in Scotland would be eligible for the household energy payment if the SNP passes it on.
“That money should be used to give Scots breathing space, not to plug holes in the Scottish government Budget.
“The UK Labour Budget gives breathing space for today and fresh hope for tomorrow.
“Millions of Scots will benefit from Labour action on the cost of living such as the warm homes discount, scrapping VAT on energy bills, and scrapping the standard charge on gas.”
Deputy First Minister Jenny Gilruth said: “The Scottish government’s budget will be cut by around £650 million next year - reducing the money we have to spend on public services and supporting people with the cost of living.
“The Prime Minister has previously claimed that he would respect devolution and the Scottish government – but his actions do not match his words. Cutting Scotland’s budget shows that, yet again, we are being treated as an afterthought.
“The Scottish government will ensure that households in Scotland will benefit from the one-off £100 payment for energy bill support, however, it is clear that the measures announced today fall far short of the action which is required.
“Furthermore, this support does not come close to meeting the promises on which the UK government came to office, including reducing energy bills by £300 which remain significantly higher than they were in July 2024. The UK government has failed to meet the moment and has failed to keep its promise.
“It is also unacceptable that there was no announcement about ending wider austerity policies which are pushing families into poverty like the bedroom tax, the benefit cap and “young parent penalty” in Universal Credit which would make a significant difference to tackling poverty.
“The Chancellor had the opportunity to lift thousands more families out of poverty, and he has chosen not to.
“We will now take the time to assess the full implications for Scotland of today’s statement. I will be announcing further details as part of the Scottish Budget on 3 December.”
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