The cost of living crisis has plunged hard-up families across the UK into a crisis where it isn’t uncommon for people to have to choose between heating and eating.
Every penny is important these days, with the cost of everyday commodities skyrocketing through steep inflation rates.
Consumer Price Index data released by the Office for National Statistics on March 23 laid bare the extent of the crisis, with inflation on goods rising by 6.2% - the highest level in three decades.
With wage increases struggling to keep pace with the soaring rates, families are looking to get back cash any way they can.
While Chancellor Rishi Sunak’s spring statement has failed to offer enough help to those struggling, there is at least some relief for households in England and Wales looking to reclaim a few quid: the Energy Bills Rebate.
What is the Energy Bills Rebate?
The Energy Bills Rebate is a support package designed to help families tackle their rising energy costs - including a compulsory £200 loan to every household that must be paid back over the next five years.
The package is worth a total of £91 million in 2022 and 2023 - but it has been slammed for not going far enough, with Labour pointing out the rebate will be wiped out by a real-terms cut to pensions.
One key part of the Energy Bill Rebate is a council tax rebate, due to be paid to homes very soon.
What is the Council Tax Rebate and how much is it?
The Council Tax Rebate is a one-off payment of £150 due to be made to eligible households to help them tackle the cost of living crisis.
It is designed to help households on lower incomes, which are likely to be disproportionately affected by the rising cost of living and could well have to spend more of their income on utility bills.
The payments will be made to liable council tax payers.
Who is eligible for the Council Tax Rebate?
People eligible for the Council Tax Rebate will need to occupy a property that meets all of the following criteria:
- It is valued in council tax bands A to D. This includes property that is valued in band E but has an alternative valuation band of band D, as a result of the disabled band reduction scheme
- It is someone’s sole or main residence
- It is a chargeable dwelling, or in exemption classes N, S, U or W
The government also says that: “The Ministry of Defence will be in touch with residents of armed forces accommodation that is exempt under class O about corresponding cost of living support.”
When is the Council Tax Rebate due?
The Council Tax Rebate is due to be paid on April 1.
For the full details, terms and conditions regarding eligibility for the Council Tax Rebate, follow this link to the government website.
The link provides examples of various scenarios that could affect a claimant’s eligibility for the scheme.
Do you need to apply for the Council Tax Rebate?
If you are eligible for the rebate you shouldn’t have to apply.
People who pay their council tax via direct debit should receive the money back automatically in April, says the Department for Levelling Up, Housing and Communities.
However, people are being urged to set up a direct debit ahead of time to ensure the payments can be made as quickly as possible, as the rebate is likely to take longer for those who do not have one already.
