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Rishi Sunak announced a number of measures in light of the energy cap price rise which was seen across the UK in April 2022. As part of this, they announced a Council Tax Rebate of £150.

Global energy and goods prices have increased significantly following the pandemic, the Russia war, and soaring inflation. The Government is fully aware of the continued financial pressures people are facing. Hence they announced over £22 billion of support to UK households in 2022-2023.

Here we explain, what it is all about, who is eligible, and how you apply for the £150 one-off payment. We have also written a similar blog on the overall Energy Bills Rebate.

What Is The Council Tax Rebate?

The Council Tax Rebate gives a payment of £150 to households that reside in council tax bands A to D. It is the responsibility of local authorities to determine who is actually eligible. Local councils are also responsible to make the £150 payment. The payments will be paid from April 2022 and there is no requirement to pay the amount back.

Who Can Claim The Council Tax Rebate?

All households who were liable for council tax on their household on 1st April 2022. Additional requirements include the household in which they live is their main home and it is in council tax bands A-D. You can check your Council Tax Band here.

This includes households who receive local council tax support, regardless of whether their council tax bill is less than £150.

If the household is exempt from council tax, the occupants will still qualify for the £150 rebate if the property is one of the following: –

  • Class W (parts of the house occupied by a dependent relative)
  • Class N (students, excluding HMOs)
  • Class S (under-18s)
  • Class U (occupants with a severe mental impairment)

The latest government statistics suggest around 15 million households have received the rebate to date. This is roughly 80% of homes in England and Wales. It is estimated up to 4 million households are still to receive the payment. This has led to claims of a postcode lottery. You can find your local council here.

How Can I Claim The Council Tax Rebate?

If you are eligible and you pay your council tax by direct debit, your local council will automatically transfer the payment to your bank account. There should be nothing for you to do, however, your council may ask for additional information from you.

If you are eligible and don’t pay by direct debit for your council tax, your local council will be in touch on how to claim the rebate.

The £150 rebate will be sent as a separate payment, per eligible household (not per person residing in that property). It is important to note, that recipients do not need to pay the £150 back.

If you would like advice on your tax affairs please contact us. Call us on 0800 471 4546 or you can contact us here.