Households urged to get ready for £150 council tax rebate

English households are being urged to set up direct debits with their local council to receive a council tax rebate that will help millions of families manage costs of living.

People who pay council tax by direct debit will see the cash go directly into their bank accounts from April. Those who do not pay by direct debit will be contacted by their council and invited to make a claim.

The government says that approximately 20 million households in council tax bands A to D - including 95 per cent of rented properties - are set to benefit from the £3 billion council tax rebate, which does not have to be repaid. It is part of an extensive package of government measures to help families with rising energy costs.

An extra £144 million will also be given to councils to provide discretionary support to vulnerable households who may not qualify for the £150 council tax rebate. This includes people on low incomes in council tax bands E to H.

Levelling Up Secretary Michael Gove said: “As we emerge from the pandemic, we understand the pressures facing many families as global inflation levels increase. The support we have introduced will help millions of people, particularly those on the lowest incomes and the most vulnerable. We continue to stand behind the British people and I urge everyone who is eligible to claim this rebate to do so.”

The Department for Levelling Up, Housing and Communities has published guidance for councils which will help them administer the rebate.