Millions of households could lose a £100 energy bill payment announced in the Budget, yet verifying their council tax band might make them eligible.

Chancellor John Healey said yesterday that up to 20million households in England will be given a £100 payment to ease rising energy costs.

The money will be disbursed from January 2027 directly to occupants of properties in council tax bands A to D.

Those in higher bands will not receive the automatic payment, even if they face bill pressures.

Authorities estimate hundreds of thousands of properties are mis-banded, meaning some families could be overpaying council tax and missing the aid.

Checking the band may not only secure the £100 handout but also cut council tax bills by hundreds of pounds annually.

Long-term overpayers might even qualify for a backdated refund worth thousands of pounds.

Homeowner Martin Rayner told Sun Money he changed his band from E to D, saved about £9,300 and will now receive the £100 payout.

Below is a guide on how to verify your band and challenge it if it appears incorrect.

Who qualifies for the £100 energy payment?

The Budget introduced a £2.6billion Household Energy Payment scheme to aid families coping with higher energy costs.

Up to 20million English households in council tax bands A to D will obtain £100 from January next year.

Eligibility requires the property to be your main residence and that you are responsible for council tax; most exempt households also qualify.

Second homes and empty properties are excluded.

If you pay council tax by direct debit, no action is needed - the local council will transfer the £100 into your bank account.

Those using other payment methods will be invited to apply through their local authority. The scheme applies only to England.

An extra £100million has been earmarked for councils to offer targeted support to households that do not meet the £100 criteria.

How to check your council tax band

Council tax is an annual levy that funds local services such as waste collection and road upkeep.

The charge varies with the property's band, which in England ranges from A to H and is based on the property's 1991 valuation.

Band A incurs the lowest charge; Band H the highest.

You can identify your band on the latest council tax bill or via the government's free online checker at https://www.gov.uk/council-tax-bands.

The tool also lets you view neighbouring properties' bands.

If homes on your street sit in a lower band, it may indicate you are overpaying.

Differences alone do not prove a mis-banding.

How to challenge your council tax band

Believing your home is mis-banded allows you to contest the valuation through the Valuation Office.

Start by gathering evidence, such as comparisons with similar nearby properties in lower bands, considering size, age, type and design.

Historical sale prices can also bolster your case.

"I've saved £9,300 after challenging council tax band"

Financial adviser Martin Rayner, 55, lives alone in Rotherhithe, South East London. He challenged his band after tracing his property's 1991 value and concluded it should be Band D, not Band E.

"I took the purchase price of my property and used historical UK House Price Index data published by the Land Registry and the ONS to calculate its estimated value in 1991," he explained.

"That calculation suggested my property should fall within Band D rather than Band E, so I used this evidence to challenge the valuation," he added.

"My argument was straightforward - the calculation relied on official government house price data, so if the Valuation Office disagreed with my assessment, I wanted to understand the evidence and reasoning behind its alternative valuation," Rayner said.

The Valuation Office could not provide alternative logic, so the challenge succeeded and the band changed to D.

Rayner reports saving over £500 this year alone and receiving backdated payments dating to his 1998 purchase.

If you have paid council tax for less than six months, you generally hold a legal right to formally challenge the band.

The same right applies if the band changed within the past six months or if certain alterations affect the property or its area.

Longer-term payers can still request a review but must present stronger evidence.

Challenges can be submitted free of charge via https://www.gov.uk/challenge-council-tax-band.

A successful appeal results in a band change and may trigger a refund for previous overpayments.

Be aware that if the Valuation Office determines the property belongs in a lower band, the council tax bill could rise.