Council tax £150 energy rebate: How it works and who qualifies for payment

The cost of energy is going to skyrocket in April and put severe strain on millions of households across the UK. This is due to the rise in the Ofgem energy price cap.

The energy price cap will increase from April 1 for approximately 22 million customers. Those on default tariffs paying by direct debit will see an increase of £693 from £1,277 to £1,971 per year (difference due to rounding).

Prepayment customers will face an increase of £708 from £1,309 to £2,017. On February 3, 2022, the Government announced a ‘£150 council tax energy rebate’ to help to mitigate the costs of rising energy bills to households in council tax bands A-D.

This rebate will not be a reduction in the amount of council tax you are required to pay, but a £150 one-off payment to be made directly to a person liable to pay council tax subject to the following qualifying criteria.

Read more: DWP benefits changes to those nearing end of life from April

How will the Council Tax rebate work?

Households in England in Council Tax Bands A-D, who are not exempt from Council Tax, will be eligible for a £150 Council Tax Rebate payment from April this year. And 80% of households in England are in Council Tax Bands A-D, so will benefit from this rebate.

The rebate will not be paid for second homes or empty properties. Households in England in Bands A-D that pay less than £150 or do not pay Council Tax as a result of Local Council Tax Support will also be eligible for a payment of £150.

People in receipt of the Single Person Discount in Bands A-D will be eligible for a payment of £150. Nottingham City Council says it is awaiting detailed guidance from the government on how the rebate is to be administered. But Gedling Borough Council has provided more information on the scheme.

Who will qualify?

Properties that are your main home and banded A-D or Band E with a disabled relief. Find out what band you are in. Second homes and unoccupied properties are excluded. Properties that are exempt from Council Tax but will still qualify for the rebate include:

  • Students

  • Occupied by persons under the age of 18

  • Occupied Annexe

  • Severally Mentally Impaired

The dwelling you occupy has a council tax band on 1st April 2022.

How will I receive the rebate?

Gedling Borough Council said: “For people who pay council tax by direct debit, in most cases, the rebate will go directly into bank accounts in April. Please do not contact us to chase payment, we will get it to you as soon as possible.

“We recommend that you sign up to Direct Debit to receive your payment as soon as possible. To sign up visit Pay council tax – Gedling Borough Council If you do not pay by direct debit we will shortly be contacting you to advise how you can apply.”

Why isn’t the £150 rebate showing on my Council Tax bill?

The payment will be paid to directly into your bank account if you pay by Direct Debit and will not show on your bill as a reduction in the amount you pay. If you do not pay your council tax by Direct Debit, will contact you to arrange payment. You must pay your Council Tax amount as stated on the bill.

Sign up to Direct Debit for your Council Tax to receive the £150 payment easily

The easiest way to receive your £150 payment is to sign up to Direct Debit, it also means you can spread your Council Tax payments over 12 months if you wish. To sign up visit Pay council tax – Gedling Borough Council and this will allow the council to pay your energy rebate to you as soon as possible.

What if I am not eligible?

A fund has been provided to Councils to help lower income households who may not qualify for the Energy Bill Rebate. This will include households are on lower incomes or in receipt of the Council Tax Reduction Scheme (CTRS) and who are in higher than band D property.

What other support is available for households with their energy bills?

The government announced a £200 discount on energy bills this autumn for domestic electricity customers in Great Britain. This will be paid back automatically over the next five years being spread over equal payments.