What the Autumn Budget 2026 Means for Your Council Tax
The Chancellor delivered the Autumn Budget on 28 October 2026, and it included two council tax changes worth knowing about: a one-off £100 payment for about 20 million households in council tax bands A to D, and a new surcharge on homes worth more than £2 million. Neither one touches your actual council tax band or the rate your council charges. Here's what each one means and who it affects.
Not sure which band you're in? Check your postcode in seconds.
The £100 payment for bands A to D
Households in council tax bands A to D in England will get a £100 payment from January 2027. Around 20 million households qualify. If you pay by direct debit, the money goes straight into your bank account and you don't need to do anything. If you don't pay by direct debit, your council will invite you to apply.
Eligibility is based entirely on your council tax band. You need to be the person liable for council tax on a band A, B, C or D property, and it has to be your main home. It isn't linked to your actual energy bill or to benefits. Second homes and empty properties don't qualify, and if you're not the named bill payer (a lodger, say, rather than the tenant or owner on the account) you won't get it either.
Why checking your band is worth doing now
Bands A to D cover a large share of homes in England: smaller terraces, flats, and many ordinary semis and ex-council houses. If you're not sure which band you're in, there's a decent chance you qualify.
Council tax bands were set using 1991 property values. In the year to March 2024, people submitted 27,130 formal challenges to their band, and 19% of them led to a lower band. If yours has always seemed oddly priced next to similar houses nearby, it's worth checking. A wrong band already costs you money every year, and it could now cost you the £100 payment too.
Checking is free. If your band does look wrong, our guide on appealing your council tax band walks through what to do next.
The new surcharge on homes over £2 million
From April 2028, owners of homes in England worth £2 million or more will pay a new High Value Council Tax Surcharge on top of their normal council tax bill. It's based on a fresh valuation of what your home was worth around April 2026, not the 1991 valuation your existing band uses. The surcharge rises in four tiers:
- £2 million to £2.5 million: £2,500 a year
- £2.5 million to £3.5 million: £3,500 a year
- £3.5 million to £5 million: £5,000 a year
- Over £5 million: £7,500 a year
What didn't change
The government ruled out scrapping council tax and stamp duty in favour of a single annual property tax, an idea that had been floated ahead of the Budget. The 1991 valuations behind your existing band haven't been touched either. Outside of the two measures above, your council tax band and your council's rate for 2026/27 stay exactly as they were.
Other changes from the Budget
A few other announcements affect household bills more broadly, even though they aren't part of council tax. The government has asked Ofgem to remove the standing charge from gas bills, worth around £108 a year for a typical household, for about 23 million homes by the end of 2027. It also extended last October's removal of VAT from electricity bills to July 2027, expected to take around £50 off the typical household's annual energy bill by April 2027.
Frequently asked questions
- Do I need to apply for the £100 payment?
- Only if you don't pay your council tax by direct debit. Direct debit payers get the £100 paid automatically into their bank account from January 2027; everyone else will be contacted by their council with instructions on how to claim it.
- Will the £100 payment affect my benefits or tax?
- Based on what's been announced, eligibility depends only on your council tax band, not your income or benefit status, so receiving it shouldn't affect other payments you get. Check with your council or GOV.UK nearer the payment date for the final rules.
- Does this change my council tax band or how much I pay each year?
- No. Your band and your council's rate are unaffected by this Budget. The £100 is a separate, one-off payment, and the new surcharge only applies to homes worth over £2 million.
- I think my home might be worth more than £2 million. What should I do?
- Nothing yet. The surcharge is based on a valuation around April 2026, and local authorities won't issue the first bills until March 2028. It's a separate valuation from your existing council tax band.
- Does this apply in Scotland and Wales?
- Both measures apply to council tax in England only. Scotland and Wales get their own funding for this through the Barnett formula and can choose to offer similar support, but neither has announced a matching scheme as part of this Budget.
Get notified about the £100 payment and future council tax changes
Related guides
How to Check Your Council Tax Band in Minutes
There are three quick ways to check your council tax band: a postcode lookup, the government's register, or your annual bill. Here's how each one works.
Council Tax Bands Explained: A to H, What They Mean and How They Work
Council tax bands run from A to H and were set using 1991 property valuations. Here's exactly what each band means, how the multipliers work, and why your band matters.
How to Appeal Your Council Tax Band: A Step-by-Step Guide
Appealing your council tax band is free and can result in years of backdated refunds. Here's exactly how the VOA proposal process works and what to do if they disagree.
Council Tax Band Rates 2026/27: What Each Band Costs
Based on the 2026/27 England average Band D rate of £2,392, here's what each band costs annually, and why your actual bill will likely differ from these figures.
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