How to get the £150 council tax rebate | moneyfacts.co.uk

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Published: 22/04/2022

With the rising cost of living, soaring inflation and spiralling energy costs all taking their toll on consumers’ wallets, the Government is stepping in to give struggling households a rebate on their council tax. Read on to find out more about the council tax rebate, how it’s paid and, crucially, what you’ll be entitled to.

What is the council tax rebate?

The council tax rebate is a one-off payment from your local council that’s designed to help households cope with seemingly endless price rises. Council tax itself is due to rise by as much as 5% in April for some households, so the rebate could help to offset that increase.  

The payment is set at £150 and doesn’t have to be paid back. According to the Government, millions of households could benefit, including those on the lowest incomes. It’s part of a wider package of support that includes the £200 reduction in energy bills that’s due to be implemented in October (the £200 will be recouped over five years from 2023, unlike with the council tax rebate, which doesn’t have to be paid back).

Will I get the council tax rebate?

If you live in England or Wales in council tax bands A-D as of 1 April 2022 and it’s your sole or main residence, then yes, you’ll get the council tax rebate. This includes those who already receive Local Council Tax Support, even if their bill is below £150.

It isn’t just homeowners who are entitled to the rebate, either. If you rent your home and are responsible for paying council tax on the property, you’ll be eligible for the rebate as well.

Why might I not get the rebate?

You won’t be eligible for the rebate if you’re in tax bands E to H, or if the property is empty.

Not sure which council tax band you’re in? You can check on the Government website, email the Valuation Office Agency on ctonline@voa.gov.uk, or call 03000 501 501. Find your local council here.

How can I apply for the council tax rebate?

You don’t need to apply for the rebate – if you’re eligible you’ll automatically receive it. One payment will be made per eligible household.

How will the rebate be paid?

If you pay your council tax by direct debit, the payment will be made directly into your bank account. Payments should start being received from April 2022.

If you don’t pay by direct debit, your local council will contact you to arrange a method of payment and/or ask you to make a claim (bear in mind that claims can only be processed until 30 September 2022). One of the methods of payment could be a council tax credit, but the majority of households will receive it as a separate payment once they’ve given the council their bank details.

Do I still have to pay my council tax?

Unless you’re exempt or have nil liability, then yes, you’ll still need to pay your council tax. Remember, the rebate is a separate payment rather than a discount on your tax bill, so make sure to pay the full amount of tax you owe.

What support is there if I am not eligible for the council tax rebate?

Households that are in financial need but don’t qualify for the rebate may be able to apply for discretionary funds from their local council to reduce their tax bill in other ways. The Government has provided £144 million for this funding, but each council sets its own eligibility criteria and claims processes.

You may be able to benefit from other methods of support too, including:

  • You may already be entitled to other reductions on your council tax. Those on a low income or receiving certain benefits may be able to claim Council Tax Support, while other discounts may also be available (for example to single occupants, students and carers).
  • Your local council may have a Household Support Fund to help with essentials.
  • See what other benefits you may be entitled to.

Above all, if you’re struggling with price rises and ever-increasing energy costs, speak to your local council to find out what support is on offer.

Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

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