August 16, 2022

Tens of millions of households are anxiously ready for the promised £150 council tax rebate to land of their financial institution accounts.

The one-off fee is meant to assist struggling households hit by hovering vitality payments, and was anticipated this month.

However because the Mail reported final week, the scheme has descended into chaos, with residents going through a postcode lottery and councils warning of lengthy delays.

It comes as consultants warn that the warfare in Ukraine may push up the typical vitality invoice to as a lot as £5,000 a yr by the autumn.

Right here, we clarify how to make sure you get your money… 

Delays: The £150 council tax rebate is meant to assist struggling households hit by hovering vitality payments, however the scheme has descended into chaos

Who will obtain the money rebate?

Everybody residing in council tax bands A to D is eligible for the fee, even when their council tax invoice for the yr is lower than £150.

Which means 80 per cent of all households — round 20 million in England — ought to obtain the cash, which doesn’t should be paid again. 

There’s related scheme for Wales and Scotland, benefiting virtually three million folks. Northern Eire has obtained funding but it surely can’t be allotted till after the election subsequent month.

The rebate was alleged to be made as a lump sum fee. Nonetheless, some folks residing in Scotland have reported that their council tax payments are being diminished as an alternative.

I’ll have to attend months for assist 

Pensioner Rachael Thompson had been banking on receiving her £150 council tax rebate this month.

However when the 70-year-old, from Barrow-in-Furness, Cumbria, contacted her council after studying within the Mail about potential delays, she discovered she wouldn’t obtain the cash till June on the earliest, or extra seemingly September.

Barrow Borough Council mentioned it had not but obtained funding for the scheme and that the software program techniques to facilitate the fee course of wouldn’t be in place till Could.

Rachael, who lives along with her son, Carl, had been counting on the money to assist cowl invoice hikes throughout the board.

‘It’s simply not adequate,’ she says. ‘There might be folks loads worse off than me who can not afford to get by with out this £150.

‘Nothing has been accomplished to place a correct system in place to pay folks.’


Will I get the cash now?

The Chancellor initially mentioned the rebate can be paid in April. However ministers have since given councils till September 30 to make the funds.

If you obtain your cash will rely upon the place you reside.

Some native authorities say they’re experiencing technical difficulties, which may imply residents is not going to obtain funds for months.

Councils have additionally been suggested to not give out the cash till households have paid their council tax invoice for April to allow them to confirm folks’s financial institution particulars, which may imply additional delays for individuals who pay their payments later within the month.

Those that don’t pay by direct debit additionally face longer ready occasions, as they’ll should be contacted individually for fee preparations to be made.

See also  MARKET REPORT: Electrical energy shares soar as sector avoids windfall tax

For extra data, go to your council’s web site, as many have up to date steerage.

Everyone living in council tax bands A to D is eligible for the payment, even if their council tax bill for the year is less than £150

Everybody residing in council tax bands A to D is eligible for the fee, even when their council tax invoice for the yr is lower than £150

Should I apply for a rebate?

You don’t want to use for the fee.

When you stay in an eligible property and pay your council tax by direct debit, it’s best to obtain the cash into your checking account mechanically.

Those that pay by money or cheque have been suggested to attend for his or her council to put in writing or e mail them with particulars of tips on how to declare, so make sure to hold an eye fixed out.

Some might supply the choice of receiving the fee as a council tax credit score or by cheque.

When you’ve got not obtained any particulars by the tip of the month, name your native district or borough council to search out out what it is advisable do.

Even in case you have already paid your tax for this month, you may nonetheless swap to paying your payments by direct debit at any time so you’ll obtain the rebate sooner.

However I don’t pay council tax…

Some teams of people that don’t pay council tax will nonetheless be eligible for the rebate.

As an illustration, a home of full-time college students (who fall into class N); folks underneath the age of 18 (class S); folks with a extreme psychological impairment (class U); and other people residing in annexes with a dependent relative (class W) will nonetheless obtain the payout.

What if I’m not eligible?

Round 4.3 million properties in council bands E to H will not be eligible for the rebate. However councils have been given £144 million of further funding to assist those that miss out however are nonetheless in want.

How this discretionary fund is spent will depend on the person council, and lots of are nonetheless figuring out the main points. 

Telford and Wrekin Council in Shropshire says it is going to give £100 to everybody in a band E property who pays by direct debit from April 14. 

In the meantime, South Derbyshire District Council says the funds might be focused at residents on low incomes who declare pension credit score or different advantages.

If there’s any cash left over, different residents might be invited to assert as much as a most of £150 per residence. Ask your native authority for extra particulars.

When will I get the £200 mortgage?

As a part of the £9.1 billion package deal introduced in February, the Authorities additionally pledged a £200 vitality invoice ‘rebate’ to ‘take the sting’ out of rising prices for 28 million households. 

There was some confusion concerning the distinction between the 2 payouts, with the important thing distinction being that the mortgage have to be paid again.

All households will obtain the £200 vitality invoice low cost from October. You don’t want to use for it. This can then be paid again through £40 instalments over 5 years, from 2023.

Nonetheless, in a session doc launched this week, it was urged that in case you are in debt together with your provider, the £200 sum may very well be used to pay this down as an alternative.

[email protected]