Households urged to get ready for £150 council tax rebate

People who pay council tax by direct debit will see the cash go directly into their bank accounts from April. Those who do not pay by direct debit will be contacted by their council and invited to make a claim.

Around 20 million households in council tax bands A to D – including 95 per cent of rented properties – are set to benefit from the £3 billion council tax rebate, which does not have to be repaid. It is part of an extensive package of government measures to help families with rising energy costs.

An extra £144 million will also be given to councils to provide discretionary support to vulnerable households that may not qualify for the £150 council tax rebate. This includes people on low incomes in council tax bands E to H.

Secretary of State for Levelling Up Rt Hon Michael Gove said the support will help millions of people, particularly those on the lowest incomes and the most vulnerable.

The council tax rebate is part of a £9.1 billion government support package, which from October, includes a further reduction of £200 on energy bills for domestic electricity customers.

The £200 reduction will help people manage the increase in energy bills by spreading the increased costs over a few years, so they are more manageable for households. It will be automatically recovered from people’s bills in equal £40 instalments over five years, beginning in 2023, when global wholesale gas prices are expected to come down.

The Warm Home Discount will be expanded so nearly 3 million low-income households will benefit from a £150 discount.