Council Tax Rebate Of £150 In April To All Households In England In Bands A To D

If you’re living in one of the 20-million English homes in council tax bands A-D, you’ll receive a rebate of £150 from the Government in April. This announcement from Chancellor Rishi Sunak comes after Ofgem plans a new price cap and the news breaks that energy bills will increase by close to £700 a year for many households. More homes than ever are struggling to cope with their energy bills, especially in colder weather, and these new measures will make a concrete difference.

Below, we’ll give you all the facts you need about the latest changes, who they impact, and how to get the money you’re owed.

Millions Of English Households To Receive £150 Rebate

The Government plans to give 80% of households help with the current cost of living crisis. Specifically, if you’re in council tax bands A-D, you’ll get the promised £150. This will arrive automatically if you already pay council tax through direct debit, and if you don’t then you can simply contact a local authority to report your bank account details. Regardless, you’ll receive £150 as a lump sum. As it is a rebate scheme, you won’t be expected to pay the money back.

Further details will emerge with time. For now, the Government confirms that you’re a taxpayer who already gets council tax support, you will still qualify for the debate if you live in the A-D band bracket. If you’re not certain of your council tax band, you can use the Government’s quick council tax band checker to find out. It’s also wise to check if you have overpaid your council tax

£144 Million Set Aside For Other Vulnerable Households

If you don’t qualify for the £150 rebate, help is still available. There is £144 million allocated on a discretionary basis to those who still need support. For example, if you live in a home in council tax bands E-H but you have a low income, you may get some of this money. Similarly, you’re a good candidate if you earn very little but don’t currently pay council tax.

When the mechanism for distributing these funds is confirmed, it’s wise to speak to your local authority to ask if you might be able to access this additional support. 

Why Is Energy Bill Assistance Determined Through Council Tax Bands?

You might be wondering why the £150 rebate is determined through your council tax band – especially if you don’t pay council tax, or you’re in band E (ie., just outside the relevant range). The rationale is probably that because energy expenses are household bills, focusing on council taxes bands allows the Government to select a distinct household bill that it has some control over. 

This approach makes good sense. Using council tax bands as a measurement helps to ensure that the rebate gets to a large proportion of middle and low-income homes. It is an imperfect way of assessing who needs help with their energy bills, but that’s where the extra discretionary £144 million can come in to catch those who are still struggling.

What if I live outside of England?

While the plan outlined above is specific to England, it’s expected that the governments in Northern Ireland, Scotland and Wales will receive approximately £500. Northern Ireland’s plans are still in development, but Scotland and Wales have each outlined an approach. The devolved Scottish government is announcing that households in council tax bands A-D can expect the same £150 rebate as English households. Meanwhile, in Wales, some can expect a tax credit of £150, and the Welsh government also plans to double its Winter Fuel Support Scheme to £200.

You can also get help with energy bills with up to £350 per household entitled.