So how do you claim Rishi’s energy rebate – and when will you get it?

Millions of households are anxiously waiting for the promised £150 council tax rebate to land in their bank accounts.

The one-off payment is supposed to help struggling families hit by soaring energy bills, and was expected this month.

But as the Mail reported last week, the scheme has descended into chaos, with residents facing a postcode lottery and councils warning of long delays.

Delays: The £150 council tax rebate is supposed to help struggling families hit by soaring energy bills, but the scheme has descended into chaos

It comes as experts warn that the war in Ukraine could push up the average energy bill to as much as £5,000 a year by the autumn.

Here, Money Mail explains how to ensure you get your cash… 

Who will receive the cash rebate?

Everyone living in council tax bands A to D is eligible for the payment, even if their council tax bill for the year is less than £150.

This means that 80 per cent of all households — around 20 million in England — should receive the money, which does not need to be paid back. 

There is similar scheme for Wales and Scotland, benefiting almost three million people. Northern Ireland has received funding but it cannot be allocated until after the election next month.

The rebate was supposed to be made as a lump sum payment. However, some people living in Scotland have reported that their council tax bills are being reduced instead.

I’ll have to wait months for help 

Wait: Rachael Thompson was told she will not receive the money until June at the earliest, or more likely September

Pensioner Rachael Thompson had been banking on receiving her £150 council tax rebate this month.

But when the 70-year-old, from Barrow-in-Furness, Cumbria, contacted her council after reading in the Mail about potential delays, she learned she would not receive the money until June at the earliest, or more likely September.

Barrow Borough Council said it had not yet received funding for the scheme and that the software systems to facilitate the payment process would not be in place until May.

Rachael, who lives with her son, Carl, had been relying on the cash to help cover bill hikes across the board.

‘It’s just not good enough,’ she says. ‘There will be people a lot worse off than me who cannot afford to get by without this £150.

‘Nothing has been done to put a proper system in place to pay people.’

 

Will I get the money now?

The Chancellor originally said the rebate would be paid in April. But ministers have since given councils until September 30 to make the payments.

When you receive your money will depend on where you live.

Some local authorities say they are experiencing technical difficulties, which could mean residents will not receive payments for months.

Councils have also been advised not to give out the money until households have paid their council tax bill for April so they can verify people’s bank details, which could mean further delays for those who pay their bills later in the month.

Those who do not pay by direct debit also face longer waiting times, as they will need to be contacted individually for payment arrangements to be made.

For more information, visit your council’s website, as many have updated guidance.

Everyone living in council tax bands A to D is eligible for the payment, even if their council tax bill for the year is less than £150

Must I apply for a rebate?

You do not need to apply for the payment.

If you live in an eligible property and pay your council tax by direct debit, you should receive the money into your bank account automatically.

Those who pay by cash or cheque have been advised to wait for their council to write or email them with details of how to claim, so be sure to keep an eye out.

Some may offer the option of receiving the payment as a council tax credit or by cheque.

If you have not received any details by the end of the month, call your local district or borough council to find out what you need to do.

Even if you have already paid your tax for this month, you can still switch to paying your bills by direct debit at any time so you will receive the rebate sooner.

But I don’t pay council tax…

Some groups of people who don’t pay council tax will still be eligible for the rebate.

For instance, a house of full-time students (who fall into class N); people under the age of 18 (class S); people with a severe mental impairment (class U); and people living in annexes with a dependent relative (class W) will still receive the payout.

What if I am not eligible?

Around 4.3 million homes in council bands E to H are not eligible for the rebate. But councils have been given £144 million of additional funding to help those who miss out but are still in need.

The promised £150 council tax rebate is supposed to help struggling families hit by soaring energy bills, and was expected to arrive this month

How this discretionary fund is spent depends on the individual council, and many are still working out the details. 

Telford and Wrekin Council in Shropshire says it will give £100 to everyone in a band E property who pays by direct debit from April 14. 

Meanwhile, South Derbyshire District Council says the funds will be targeted at residents on low incomes who claim pension credit or other benefits.

If there is any money left over, other residents will be invited to claim up to a maximum of £150 per home. Ask your local authority for more details.

When will I get the £200 loan?

As part of the £9.1 billion package announced in February, the Government also pledged a £200 energy bill ‘rebate’ to ‘take the sting’ out of rising costs for 28 million households. 

There has been some confusion about the difference between the two payouts, with the key difference being that the loan must be paid back.

All households will receive the £200 energy bill discount from October. You do not need to apply for it. This will then be paid back via £40 instalments over five years, from 2023.

However, in a consultation document released this week, it was suggested that if you are in debt with your supplier, the £200 sum could be used to pay this down instead.

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This post first appeared on Dailymail.co.uk