Key facts
- Eligibility for the £100 payment is tied to council tax bands set on 1991 property values, not current household incomes.
- Centre for London said 69% of London properties fall in bands A to D, against more than 82% outside the capital.
- In Camden, Islington and Tower Hamlets, between 55% and 68% of homes would qualify, per Centre for London.
- The measure is expected to cost the government £2.6 billion, The Standard reported.
- Rob Anderson of Centre for London said council tax is a flawed way to decide who receives support.
A City AM analysis found that London homes worth millions are in line for a £100 winter energy payment announced in John Healey's Budget on Wednesday, while homes in poorer areas will receive nothing.
Eligibility for the payment is tied to council tax bands based on 1991 property values rather than current household incomes. A property in Band E was placed there because it was worth more than £88,000 in 1991, though the same home could now belong to a low-income family, a pensioner or a young renter.
New analysis by Centre for London, the capital's independent think tank, found just 69% of London properties fall within the A to D bands, meaning hundreds of thousands of homes will miss out. Outside London, more than 82% of homes are eligible, The Standard reported. The measure is expected to cost the government £2.6 billion.
The think tank said the gap is widest in London because property prices have risen far faster than incomes over three decades. Barking and Dagenham, one of London's highest-poverty areas, would see more than 90% of properties qualify, while Camden, Islington and Tower Hamlets would see between 55% and 68% eligible. The fewest qualifying homes are in Kensington & Chelsea, Westminster and Richmond-upon-Thames.
Rob Anderson, research director at Centre for London, said: "Any extra support for households is welcome as bills start to rise through winter. However, Council Tax is a deeply flawed way to decide who receives that support." The scheme has also drawn criticism from campaigners and think tanks who describe it as badly targeted and too small, and Andy Burnham defended it, The Standard reported.