Council tax rebate explained: Which households are eligible for £150 discount?

PMQs: Labour slammed by Buchan over £500 more council tax

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Specifically, households in bands A to D are able to get the £150 discount on their council tax bill. According to Government figures, the combined total of people in these tax brackets make up 80 percent of the country’s population. However, households in council tax bands outside of this eligibility threshold will be unable to receive this particular support.

Recipients of the council tax discount will not need to fill out an application as the rebate will be automatically given to eligible households.

Households do not need to pay back the £150 discount to their local council which will come as a relief to many.

Alongside the council tax rebate announcement, the Chancellor Rishi Sunak also launched a similar £200 rebate scheme for energy bills, however this is a loan.

The council tax rebate will be paid directly to claimants and will not be deducted from their final bill.

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Catherine Grayson, an expert from A-plan Insurance, outlined which families are set to benefit from this discount, and which households will eventually lose out.

Ms Grayson explained: “The Government announced that for those in council tax bands A to D, they will receive a £150 rebate to help with the cost of living.

“Around 20 million households in England will receive this in April.

“Unfortunately, not everyone is eligible to receive this help and therefore spreading the cost of council tax should make these price increases slightly less troublesome.”

As well as this, Ms Grayson noted their other ways for households to reduce the pressure on their council tax obligations.

She added: “Currently, many people pay their council tax manually for over 10 months as this structure may suit the council.

“However, you are perfectly entitled to spread this over 12 months as this will avoid 10 high payments and then two months with no cost.

“In order to set up the direct debit, you need to call the local council tax office or there is an option online on some councils’ websites for those who are tech-savvy.”

Households not in council tax bands A to D, or who do not pay the levy, may be able to receive support via the Government’s Discretionary Assistance Fund.

The fund recently received a £144million boost to assist vulnerable people across the country at the same time as the rebate’s announcement.

Furthermore, families can get assistance via the Council Tax Discretionary Relief (CTDR) if they cannot claim the rebate.

This is available for those who are unable to pay their bill due to exceptional circumstances and claim the council tax reduction.

On this support, the Chancellor outlined the Government’s priorities in tackling the cost of living crisis.

Mr Sunak explained: “Right now, I know the number one issue on people’s minds is the rising cost of living.

“That’s why the Government is stepping in with direct support that will help around 28 million households with their rising energy costs over the next year.

“We stood behind British people and businesses throughout the pandemic and it’s right we continue to do that as our economy recovers in the months ahead.”

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