Martin Lewis has confirmed eligible Scottish households will receive a £150 rebate on their Council Tax bill to help offset the upcoming energy price hike in April.
Speaking on the latest episode of The Martin Lewis Money Show Live on Thursday, the consumer champion explained that the support measure put in place by Chancellor Rishi Sunak last week for households in England will also apply to Scotland.
He told viewers: “If you’re in Council Tax bands A to D in England, you should get this automatically on the 1st of April, I haven’t seen the exact details yet because they’ve not published it yet, but it will be automatic. Also, today we heard that the Scottish Government will be mirroring the English system - if you’re in bands A to D you’ll get £150 on the 1st of April.”
Mark got in touch with the show by email and asked Martin: “When the Council Tax rebate is applied, will it be before or after any single person discount, currently at 25 per cent?”
The financial guru clarified that the £150 payment will be added to all accounts, no matter what your bill is as long as you meet the eligibility criteria.
He explained: “It doesn’t actually matter, you get a flat £150, whatever your bill is so that’s irrelevant - in a good way.”
Scottish Finance Secretary Kate Forbes announced a £290 million package of support for Scots affected by the soaring cost of living on Thursday, which includes 150 Council Tax rebates for eligible households.
All households in bands A to D will receive a £150 payment or discount from their Council Tax bill, as will those in other bands who already qualify for reduced rates.
Ms Forbes said it means 73 per cent of Scottish households, some 1.85 million people, will receive the money, but she admitted it is an "imperfect scheme" and does not go far enough to support those hit by rising energy bills.
She said: “In terms of the challenges that we face right now, I think the measures that we have outlined will only go so far.”
Opening the stage three debate of the Scottish Budget, Ms Forbes estimated that the energy price cap rise of almost £700 "could move a further 211,000 households into fuel poverty, and around 235,000 households who were already fuel poor into extreme fuel poverty".
Announcing the financial support measures, she said: "Firstly, we will provide £150 to every household in receipt of Council Tax reduction in all Council Tax bands.
"The Council Tax reduction scheme already identifies households in greatest need and will allow us to target this intervention.
"Secondly, I will provide local authorities with funding to pass on £150 to other occupied households in bands A to D in Scotland."
The money will either be given as a direct payment by local authorities or used as credit towards Council Tax bills, Ms Forbes said.
The Finance Secretary also announced an additional £10 million for the Fuel Insecurity Fund "to help households at risk of self-disconnection, or self-rationing their energy use, due to unaffordable fuel costs".
Explaining her decision, Ms Forbes said: "This is clearly an imperfect scheme. It will reach some households who may not need this, but it is the only route we have to make sure we reach those for whom it will make a difference, quickly and simply.
"I know that the cost of living crisis is affecting households who are not in receipt of benefits, who are not claiming a council tax reduction. And they are facing hardship too.
"We must seek to do what we can to prevent those households and families on the edge of the poverty line from falling over it."
Ms Forbes also said that councils will be allowed to carry forward any underspends in the Discretionary Housing Payment and the Scottish Welfare Fund into the next financial year.
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