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Daily Mirror
Daily Mirror
Politics
Lizzy Buchan

Top MP warns groups of Brits could miss out on £150 council tax rebate

Some Brits could miss out on the £150 council tax rebate designed to ease the pain of soaring energy bills, a senior MP has warned.

Millions of households in bands A to D will get the discount on their council tax from April under Rishi Sunak's plans to help families when the energy price cap rises.

But Levelling Up Committee chairman Clive Betts warned of gaping holes in the plan which could leave some Brits missing out.

In a letter to top Tory Michael Gove, he demanded to know how households without bank accounts would get the money and what happens to renters whose landlord pays their council tax.

Mr Betts also raised questions on how cash from a £144m discretionary pot would be allocated, which is intended for low-income and vulnerable households.

Chancellor Rishi Sunak unveiled the support under plans to help households hit by rocketing energy bills (NEIL HALL/EPA-EFE/REX/Shutterstock)

He said: "The Government has made significant efforts to get good headlines for introducing the £150 rebate.

"However, it has now left local authorities with the headache of managing the allocation of these payments.

"Additionally, it has now emerged that access to the rebate will be difficult for those who do not pay through Direct Debit.

"The Government needed to ensure that qualifying households received prompt support, but have instead imposed the burden of responsibility and bureaucracy on to local authorities."

Ministers must spell out how these households, including those who receive council tax support or who receive pension credit, will receive the rebate, he said.

Mr Betts added: “The rebate is welcome but we need to know more from Whitehall about what they are doing to support local councils deliver this policy and provide firm assurances that councils will not be hit by further costs from administering the rebates.”

His comments came in response to a letter from Levelling Up Secretary Michael Gove, who insisted that the "full £150 payment will be made to all eligible council tax payers".

Mr Sunak announced the plans last month after the regulator Ofgem confirmed the energy price cap will rise in April to a record £1,971 for a typical household following soaring gas prices.

In a Commons statement, he said: “Without government action this would be incredibly tough for millions of hard-working families.

"So the government is going to step in to directly help people manage those extra costs.”

As well as the council tax rebate, domestic electricity customers will get a £200 upfront discount, which will be applied to people's bills from October.

It will be repaid in £40 instalments over the next five years, to "spread worst of the extra costs of this year's energy price shock over time", he said.

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