A council tax rebate of £150 is being offered to millions by the government – here’s how to check if you’re eligible

A council tax rebate would be pretty handy right now, right? The cost of living in the UK is on a steep surge – the average annual energy bill per household is set to rise from £1,277 to £1,971, and interest rates are only increasing, too.

It’s a scary prospect, especially since food prices are firmly on the rise. On 3 February, the government announced that it will be introducing a council tax rebate to help struggling households, as well as energy bill discounts – though there are some exceptions. 

Here’s everything you need to know, and how to find out if you’re eligible.

What has the government announced about tax rebates and energy discounts?

Chancellor Rishi Sunak has announced a support package for millions of households in the UK, revealing that many will receive £350 worth of discounts on rising energy bills. 

A £200 discount – repayable at £40 a year from 2023 – will be available from October, and a further £150 council tax rebate will also be paid to the majority of households. 

Local authorities will also be given £150m to make discretionary payments to those in further need.

“Without government intervention the increase in the price cap would leave the average household having to find an extra £693. The actions I’m announcing today will provide to the vast majority of households just over half of that amount, £350,” Sunak said.

Who is eligible for the tax rebate?

It will be available to all households in England that fall under the council tax bands A, B, C or D. It won’t have to be paid back. 

However, concerns have been raised for those that live in HMOs (houses in multiple occupation), private renters and students, according to The Guardian.

When and how will the tax rebate be paid?

The money will be issued directly from councils from April. If you usually pay your council tax via Direct Debit, the payment of £150 will be automatically credited to your account.

If you don’t pay by Direct Debit, the council will process a claim.

Is there any other support I can claim? 

The government is also expanding its warm home discount by a third, to around 3 million households. It’s worth £140, and is taken from your electricity bill between October and March.

If you don’t think you’re eligible for a tax rebate, you can contact your local council to see if you qualify for any other support. Some households are entitled to a discount on council tax, while others can be completely exempt.