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What is the council tax rebate? When you’ll get the £150 energy support payment and how to check your tax band


UK households are feeling the squeeze of the cost of living crisis after the energy price cap increased significantly in April.

In an attempt to compensate for the rising costs, millions of people will receive a council tax rebate this spring as part of a series of measures unveiled by Rishi Sunak in February.

Here’s everything you need to know about the payment, from who is eligible to when you should receive it.

What is the council tax rebate?

The council tax rebate is a one-off £150 payment, part of a £9.1bn Treasury support package.

Unlike a separate £200 energy bill rebate being made later in the year, the council tax rebate will not need to be repaid.

It is being paid to households whose home was in council tax bands A to D in England on 1 April – this affects around 20 million homes, including 95 per cent of rented properties.

This criteria has been mirrored in Scotland with its scheme, and the Welsh Government said it will offer similar terms too.

People in the UK are battling a worsening cost of living crisis (Photo: PA)

How can I check if I can get the council tax rebate?

If you live in England or Wales you can find out your council tax band by entering your postcode into the government website here.

You can also use this service to challenge your council tax band if you think it is wrong.

Those who live in Scotland will need to use the Scottish Assessors website.

Your council tax band is based on the price the property would have sold for on the open market on 1 April 1991 in England and Scotland, and 1 April 2003 in Wales.

In England bands A to D cover properties with a value of up to £88,000, in Scotland the upper limit is £58,000 and the threshold for Wales is £123,000.

More on Council Tax

When will the council tax rebate be paid?

If you are eligible, you should receive the £150 council tax rebate very soon.

The Government states in its official guidance: “All Council Tax Rebate grants should be paid as soon as possible from April.”

Eligible groups shouldn’t have to apply to receive the council tax rebate, so long as you pay your bill by direct debit. If you do, then the one-off payment will automatically be credited to your account.

In the weeks leading up to April, people were urged to ensure that they switched to direct debit so that they could be paid as promptly as possible.

Getting the money to council taxpayers without direct debit arrangements takes longer, according to the Local Government Association (LGA), as councils will need to attempt to contact them about the rebate scheme and undertake pre-payment checks.

The Independent Office for Budget Responsibility (OBR) warned that could only be an 80 per cent take up rate among those that do not pay for their energy via direct debut.

In its report released alongside the Chancellor’s Spring Statement, the OBR said: “While for direct debit payers the rebate is deducted automatically, for others it relies on them being contacted by their council and ‘invited to make a claim’.

“The overall level of take-up therefore depends on the proportion that pay via direct debits and the take-up among other council tax payers.”

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