Revealed: The luxury London pads getting Healey’s energy handout – while poorer areas miss out

John Healey's energy bills support package was initially intended to be targeted. However, an analysis by City AM has discovered that expensive properties are receiving the handout, while poorer areas remain unaffected. The Budget document emphasized the word "targeted" up to 30 times, attempting to downplay the fiscal impact of the measures.

The £2.4bn plan to provide £100 to households to help with higher energy bills was supposedly targeted at poorer households. Yet, a City AM analysis of council tax data indicates that Healey's reliance on outdated property tax data means the money will go to well-off professionals and retirees in London and the South East, while other less affluent households elsewhere will miss out.

The outdated council tax bands have not been updated since the early 1990s, often inaccurately reflecting current property prices. Areas such as central and suburban London postcodes have seen property values skyrocket over the past 30 years, while homes in deindustrialized regions have declined in real terms. Consequently, million-pound homes in upscale London neighborhoods like Notting Hill, Twickenham, and Primrose Hill are eligible for the energy support, while properties in towns with much lower property prices, including Blackpool and Aberdeen, are not.

Freehold properties with up to five bedrooms in areas like Peckham, Nunhead, and Camberwell will receive the targeted support. The pocket of south-east London, once one of the capital's most deprived areas, has become increasingly attractive for upwardly mobile professionals, leading to a surge in property values over the past 25 years.

Even in the nicer outskirts of London, such as Burford in Oxfordshire, the scheme extends its reach. However, the £100 provided by the government may not be enough to offset rising heating costs.