AROUND a million households could miss out on a £150 council tax rebate next month because they’re not paying their bills the right way.
Four in five households in England will get the council tax payment from April – but it will only be made automatically where billpayers have set up to pay by direct debit.
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And records show that around one million households will face a longer wait for the cash because they currently pay their bill another way.
The rebate is part of a package of support from the government designed to help ease the impact of the cost of living crisis.
Budget-busting price rises affecting energy and broadband bills will put pressure on people’s finances within weeks.
Meanwhile, millions of Brits face paying higher National Insurance costs and mortgage rates are on the up for many homeowners.
Historic levels of inflation have also pushed up the cost of essential goods, such as food and clothes.
Chancellor Rishi Sunak announced the £150 council tax rebate in early February.
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The cash will be paid out to those living in homes classed in bands A-D for council tax bills.
Mr Sunak said this is around 80% of households, and almost all low-middle income families.
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 are paying by direct debit, your local authority already has your bank details and so can pay the money directly into your account.
If you’re not, you can still get the money, but your council will have to contact you and then you will have to make a claim.
You can avoid the risk of delays by setting up a direct debit now, ready for the rebate payment next month.
How to set up a direct debit to pay your council tax
If you don’t already pay your council tax bill by direct debit and want to set it up you need to contact your local council directly.
You can find you local council using the gov.uk tool and searching your postcode.
When you set up a direct debit to pay council tax you can choose to pay over 12 months or 10.
If you choose 10 months then your monthly payments will be slightly higher as the bill is spread over less time, but you’ll get two months where you’ll pay nothing at all.
Setting up a direct debit means you’ll have the money taken out of your bank account on the same day each month, so you need to budget for it around this time.
You can usually choose which day of the month this is, so you can time it with pay day when you have money in your account.
If you decide you don’t like paying by direct debit you can always cancel this – but do it through your council.
Never just cancel through your bank as it’s likely to be recorded as a missed payment which can have serious consequences.
You’ll need to choose a new way to pay, like using a debit card to pay online, bank transfer, cheque or paypoint.
How to get help paying your council tax
If you don’t qualify for the rebate, there is a separate £144million fund to be distributed by local authorities for vulnerable people or those on low incomes.
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.
Those exempt from council tax already won’t get the money either, but if you get council tax support through your local council and it reduces your bill you will get it.
Council tax is devolved to Scotland, Wales and Northern Ireland, so there may be different schemes available there.
If you’re not already getting an existing council tax discount it’s worth checking if you’re eligible.
Single people are entitled to 25% off their bill, while an adult living with a student can get 50% off.
If you are on a low income or receiving benefits, you could eligible for a reduction on your council tax.
The requirements to get help will vary depending on where you live, so the best first step is to check with your local council.
You can apply for a reduction through the Government website.
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