Council tax rebate of £150 explained – are YOU entitled to help when energy bills skyrocket?

The council tax refund applies to all households in England that are in council tax brackets A, B, C or D – the government says this covers around 80% of all households

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Martin Lewis on the simple tricks to scraping thousands off your council tax bill

Millions of Brits across the UK are eligible for a £150 rebate on their council tax bill from this month – but who exactly can claim the help?

The money was due to go into bank accounts in April and was confirmed to help struggling Brits during the cost of living crisis.

The big math that worked out is energy. Ofgem today raised its energy price cap from £1,277 to £1,971 – a staggering £693 increase and a massive slump in household bills.

This applies to late fares paying by direct debit and came into effect on April 1st.

Prepaid customers are more affected with an increase of £708 from £1,309 to £2,017.

Families are in the midst of a livelihood crisis


(Getty Images/iStockphoto)

At the same time, municipal tax bills are also increasing by an average of 3.5% from today, broadband and cellphone bills are increasing, and water bills are also increasing.

The Bank of England has also hiked interest rates from 0.5% to 0.75% – adding to the misery of the bills for homeowners with a mortgage.

We explain how the municipal tax credits work and who is entitled to them.

Who is entitled to the £150 council tax rebate and how do I get it?

The council tax rebate applies to houses in council tax brackets A, B, C or D in England and Wales – around 80% of properties – but not to those in council tax brackets E, F, G and H (or I as well, in Wales).

Residents of Scotland are also eligible for a £150 reduction if they are in bands A to D – but they also qualify if they currently also receive a council tax reduction.

If you are eligible, the money does not have to be repaid and will be spent directly by the municipalities from April.

For those paying by direct debit, municipalities will use the data they have in their system for you to transfer the money straight to your bank account from April.

If you don’t pay by direct debit, local authorities should prompt you to file a claim and ask for your account details so they can process the payment.

Worried about the cost of living crisis? Let us know:

The government estimates that 95% of tenants pay their own council tax and would therefore be covered by the subsidy.

A funding pot of £144m is also being made available to support vulnerable and poorer people who do not pay council tax in England or pay council tax on properties in bands E, F, G and H.

Devolved governments in Wales, Scotland and Northern Ireland are expected to receive around £565million in Barnett funds to help those not covered by Council tax credits.

Other announced support includes a £200 upfront rebate on energy bills.

Energy suppliers get the money for this from the state and are supposed to apply the discount from October.

But customers will have to repay the £200 rebate from their bills at a rate of £40 a year over the five years from 2023 to 2027.

Other ways to reduce your council tax

Some people might be entitled to a council tax rebate of 25% to 100% on your bill.

However, the help offered depends on where you live – so it’s best to contact your local authority to find out what you can claim.

But as an example, if you are the only adult living at your address, you could be entitled to a 25% rebate on your council tax bill.

Households in certain council tax bands receive money from their bills


(Getty Images/iStockphoto)

The same applies if an adult lives with someone else who is “disregarded”.

This can be a student and an adult living together, or a live-in caregiver caring for someone with a disability.

You could get a 50% rebate on your council tax bill if everyone who is your home is “discounted” from that bill.

And the maximum 100% discount could apply to someone who has a severe intellectual disability and lives alone, or if you live in a student-only household.

You may also be able to apply for help through a Council Tax Reduction program (sometimes called Council Tax Support) if you are on a low income or receive certain benefits.

Depending on your circumstances, you can see your council tax bills reduced by up to 100%.

Whether or not you are eligible for help through a Council Tax Support program depends largely on:

  • Where you live
  • Your living conditions (e.g. income, number of children, benefits, residence status)
  • Your household income – this includes savings, pensions and your partner’s income
  • If your children live with you
  • When other adults live with you

You can apply if you own your own home, rent, are unemployed or work.

Again, each community has its own scheme, so the help offered isn’t guaranteed – but it’s still worth checking out.

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Fry Electronics Team

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