More than 830,000 low-income families will miss out on Labour's £100 energy payment while wealthier band A to D homes get it

Policy in Practice's analysis identified 838,000 households claiming Council Tax Support that will be shut out of the scheme, because eligibility is tied to council tax bands A to D rather than to income — leaving some of the poorest families with nothing while better-off households in lower-band homes receive the payment. Chancellor John Healey announced the £2.6bn scheme in last week's Budget; it will send £100 directly into roughly 20 million households' bank accounts from January, paid for by doubling the tax on bank profits.

Larger low-income families are disproportionately affected: those with five or more members are 1.6 times more likely to live in a band E to H property, locking out more than 130,000 struggling bigger households.

Researchers found that around 84 per cent of those who miss out either live with a disabled person, have children in the household, or fall below the poverty line.

Reform deputy leader Richard Tice says even households that do qualify will find £100 nowhere near enough of a break.