Two million households on low incomes ‘face waiting weeks’ for £150 council tax rebate

TWO million households on low incomes face ‘face waiting weeks’ for the crucial £150 council tax rebate, The Sun can reveal.

The extra help for hard-up households was announced by the government last month to help with rocketing energy bills.

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Around four in every five homes in England will start getting the discount within days, and most people are eligible if they live in a home in council tax band A-D.

But households that pay no council tax because they get their bill discounted under existing schemes face waiting weeks extra according to local government insiders.

Billpayers have been urged to set up direct debits to pay their council tax to make sure they get the payment quicker.

Although, those who pay no council tax at all are excluded from this, as they don’t have a bill to pay each month.

Local councils will be contacting residents who don’t have direct debits set up, to get bank details to make the payment.

But it means it will take longer to process than the automatic payments for billpayers.

For instance around 40,000 households in Wiltshire will be sent letters in April inviting them to submit their bank details to get the one-off payment.

And in Newham and Coventry residents will have to complete an application form to claim the £150.

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Councillor Shaun Davies from the Local Government Association, said: “Having a direct debit set up will mean councils can automatically pay the £150 energy rebate straight into your bank account.

“You can still get the money if you don’t have a direct debit set up, but it could take longer as your council will have to contact you and then you’ll have to make a claim.”

It’s worth keeping an eye out for a letter from your council if you’re eligible for the rebate and don’t pay a bill.

How you apply will depend on where you live as, each council will have a different process.

Council tax support is available through local councils for those on low incomes and claiming benefits, including pension credit.

How much discount you get depends on your circumstances and in some cases it can reduce the bill by 100%.

In Bristol for example more than 25,000 residents pay no council tax after applying for a reduction, while in Manchester Wiltshire, Ealing and Coventry there area more than 10,000 in each are getting the full help.

Estimates put the total number of people paying no council tax at around 2million – though there are no official figures as the discount scheme is administrated by local councils.

Official data shows only how many get the help in total, which can partly reduce the bills, as well as discounting them 100%.

People living in homes with council tax bands that don’t qualify for the rebate and who are struggling to get by can apply for £150 help.

A separate £144million fund was launched which local councils can dish out to vulnerable and low income households.

What is the £150 council tax rebate?

The help with council tax bills was announced by the government to help with the cost of living crisis which has seen bills and household costs rise.

Those in council tax bands A to D will get the cash – around 80% of homes – but those in bands E to H are among those missing out.

You won’t have to give the money back.

You can find out which band you’re in by using the government’s search tool – you just need to enter your postcode.

If you don’t already pay your council tax bill by direct debit, setting it up will ensure you get the cash quicker straight into your bank account.

If you don’t have a direct debit set up then your local council will contact you to get your bank account details so it can make payment.

Payments will start being made from April 1, though the exact date you get it will depend on your local council.

The government says it expects the vast majority of people to get payments in April.

If you don’t qualify for the rebate you could challenge your council tax band if you think it’s wrong so you don’t miss out on the cash.

But beware a revaluation of your band could put you in a lower band where you pay MORE council tax, so consider the risks – you can read more in our guide.

How do I get council tax support?

If you don’t already get a council tax bill discount it’s worth checking if you’re eligible.

An estimated 2.8million households are estimated to be missing out on council tax support worth a whopping £2.6billion.

You can apply for a council tax reduction if you’re on a low income or claim other benefits.

Depending on your circumstances, you could get your bill reduced by up to 100%.

Exactly what discount you get depends on factors including:

What you get depends on:

• Where you live – each council runs its own scheme, with different rules
• Your circumstances – including number of children, benefits, residency status
• Your household income – including savings, pension and a partner’s income
• If your children or other adults live with you

For instance, if you’re the only adult in your household, you automatically get 25% off your bill, but many people get far more.

To apply, enter your postcode into this government website, and then head to your local council to see what’s available.

This post first appeared on thesun.co.uk