£100 energy payment offers limited relief for health and care workers facing tighter household budgets

Millions of households will receive a £100 payment towards rising energy costs under measures announced in the Budget, but forecasts showing a further squeeze on living standards will concern healthcare and social care workers already struggling with everyday expenses.

The Household Energy Payment will be made from January 2027 to up to 20 million households in council tax bands A to D in England. The government has also extended the temporary removal of VAT from domestic electricity until July 2027, which is expected to reduce the annual Ofgem price cap by approximately £50 from April. Funding will be given to the devolved governments to provide similar support.

The measures will help eligible NHS employees, care workers and nursing students, but entitlement is based on council tax band rather than occupation or income. This means the payment will not necessarily reflect the financial circumstances of individual workers, while some struggling households in higher-band properties may need to seek support through a separate £100 million fund administered by local authorities.

The announcement comes as financial insecurity remains widespread across the care workforce. A typical care worker earned £12.60 an hour in March 2026—just 39p above the minimum wage—while 46% earned less than the real Living Wage. Research by the Care Workers’ Charity also found that 72% did not feel financially secure and almost 29% had used a food bank. Among nursing students surveyed by the Royal College of Nursing, 93% were worried about money and 60% of those concerned had reduced spending on food and essential bills.

The wider outlook remains difficult. The Office for Budget Responsibility expects real household disposable income per person to fall in the near term and forecasts no growth in real earnings during 2027 and 2028.

For workers delivering healthcare and support through another pressured winter, the £100 payment may provide welcome breathing space. However, it does not resolve the deeper problem of pay failing to keep pace with housing, food, travel and energy costs—particularly in social care, where low wages continue to affect recruitment, retention and the financial wellbeing of the people providing essential services.

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