FREE cash has been made available for households hit by the cost of living crisis, but it might not be paid directly into your bank account.

The £150 council tax rebate scheme is meant to put money into the pockets of millions of people across the UK.  

All households in council tax bands A-D are eligible for the payment

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All households in council tax bands A-D are eligible for the paymentCredit: Getty

Households who pay their council tax by direct debit have received a £150 cash payment straight into their bank account.

But if you don’t pay in this way you’ll probably get the money in the form of a voucher issued by the council instead.

These vouchers expire, so you’ll have to be quick to make sure you pocket the money this way. 

Here’s what you need to know about redeeming your rebate vouchers and what to do if you want the grant in cash.

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What is the council tax rebate and why would I get a voucher or cash? 

The £150 council tax rebate was announced back in February when the former Chancellor Rishi Sunak introduced a cost of living support package.

All households in England, Scotland and Wales living in council tax bands A-D are eligible for the payment.

You can check your council tax band using this government tool. 

Local councils are responsible for determining who is eligible and making payments.

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Councils have until September 30 to pay the cash out to people and the rebate is being paid in a number of ways. 

Many households have been paid by direct cash bank transfers.

But those who don’t pay their council tax by direct debit will get their money in other ways.

Some councils added a £150 council tax bill discount to people’s accounts instead of paying households in cash – we’ve previously outlined how to apply to get cash instead.

Other councils have paid non-direct debit customers the £150 with a redeemable Post Office voucher or cheque. 

However, these vouchers come with an expiry date. You need to be quick and see if you are due a voucher and how to redeem it. 

Where can I redeem my £150 council tax rebate voucher? 

If your council is issuing vouchers, they should send a post office voucher to the persons named on your council tax bill.

You can check with your local council to see if they are planning on sending it in any other way, such as an e-voucher.

Then you simply take it to your nearest Post Office branch. 

You can use the branch finder tool to find your local branch.

The voucher will have a barcode that the Post Office staff can scan which’ll then allow them to give you the cash. 

Make sure you take some form of identification with you as the Post Office will need to check that you’re the letter holder.

This can be a passport, drivers licence, debit or credit card.

If your voucher expires, don’t worry. You should still be able to get the money. 

Many councils will credit £150 to your council tax account instead.

Can I get cash instead? 

Some households who don’t pay their council tax via direct debit can apply for the rebate in cash. 

But many deadlines to do this are fast approaching. 

For example, residents whose local authority is  Birmingham City Council will have to apply for the rebate on council tax by July 31. 

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And those living in Hyndburn Borough Council will also need to apply to receive the cash in their bank by the end of the month.

Check what your council’s deadline is in order to avoid missing out on getting your grant in this way. 

This post first appeared on thesun.co.uk

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