The chancellor John Healey has announced a £100 cash payment to millions of households in the UK to help with energy bills.
Healey announced that 20 million households in Council Tax bands A to D will be eligible for the payment this winter.
He said: “This will be paid directly into people’s bank accounts”.
The scheme has been costed at £2.6bn, and will be funded by a tax hike on banks.
Healey confirmed an extra 3% would be introduced on the banks surcharge – taking the total paid to 6%, on top of the 25% corporate tax rate.
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The chancellor said he was “grateful” for the role the banks play and was “asking a bit more of our banks” to support ordinary people.
The tax hike on banks will start in January and end 15 months later.
The increase is smaller than some had expected, with speculation Healey could have charged banks an extra 5% or even 8%.
