- As the UK economy continues its recovery from the pandemic, the Conservative government have stepped in to confront the global inflationary pressures caused by the world economy coming swiftly back to life.
- That is why the Conservative Government has introduced a non-repayable £150 cash rebate for homes in Council Tax bands A-D – equivalent to 80 per cent of all households, helping both lower and middle-income families.
- The £150 cash rebate will help families and households to manage the costs of their bills, and forms just one part of our £9.1 billion plan to help families with the cost of living.
As the UK economy continues its recovery from the pandemic, the Conservative Government are confronting the global inflationary pressures caused by the world economy coming swiftly back to life.
Much of this inflation is being driven by the rising cost of energy due to increased demand worldwide – and that feeds through into pressures on the cost of living.
The Conservative Government has already taken steps to support families. These measures include reducing the Universal Credit taper rate, increasing the National Living Wage by a record amount, cutting fuel duty, and launching a £1 billion Household Support Fund to help the lowest-income households with their bills.
And the Conservative Government has now introduced a £150 council tax rebate to support households across the country to keep the cost of living down.
The rebate is being introduced across England, and although council tax is a devolved issue, £565 million has been provided to the Welsh, Scottish, and Northern Irish governments to allow them to implement their own council tax rebate – ensuring that support reaches every corner of the UK.
Where council tax is paid by direct debit, households will automatically receive the £150 rebate in April 2022. Households which do not pay by direct debt will be contacted by their council and made aware of the scheme.
Commenting, Mario Creatura said:
“Many people are rightly worried about their bills right now, so it is absolutely right the Government does what it can to help with this.
“This new Council Tax rebate help will help households across the country, by taking £150 off their council tax bills – on top of pre-existing measures to support families, such as the Warm Home Discount scheme.”
Commenting, Levelling Up Secretary Michael Gove, said:
“As we emerge from the pandemic, we understand the pressures facing many families.
“The support we have introduced will help millions of people, particularly those on the lowest incomes and the most vulnerable.
“We continue to stand behind the British people and I urge everyone who is eligible to claim this rebate to do so.”
- The Government is delivering a non-repayable £150 cash rebate for homes in Council Tax bands A-D – equivalent to 80 per cent of all households, helping both lower and middle-income families. This money will target 80 per cent of households, expecting the vast majority of people who pay their council bills via Direct Debit, to see the benefits by April (HM Treasury, News Story, 3 February 2022, link).
- The Government is introducing a £200 ‘smoothing’ rebate on energy bills for all households, offering support to all households across the country. This rebate is to be paid back over the next five years at £40 per year – starting from April 2023, helping families to adjust to energy prices and spread payments over a longer period (HM Treasury, News Story, 3 February 2022, link).
- The Government is continuing with plans to increase the Warm Homes Discount, worth £150, and extending eligibility by one-third to 3 million vulnerable households. Currently, our Warm Homes Discount provides a £140 rebate on energy bills each for over 2.2 million low-income households, we are continuing with plans to increase the rebate to £150 and expand eligibility by one-third to 3 million vulnerable households (HM Treasury, News Story, 3 February 2022, link).
- The existing Household Support Fund has been doubled to £1 billion, helping the most vulnerable households. The Government are adding an additional £500 million to the Household Support Fund, which helps the most vulnerable families with the cost of living. The fund is distributed through local authorities in England, who have discretion over exactly how the funding is used. It is expected to benefit 3 to 4 million vulnerable households (HMT, Spring Statement 2022, 23 March 2022, link; DWP, Press Release, 31 March 2022, link).
- Fuel duty is being slashed by 5p for twelve months, delivering a £5 billion tax cut for drivers together with the freeze. Conservative governments have frozen fuel duty for twelve consecutive years. But in recognition of the unprecedented circumstances pushing up fuel prices, the Government are cutting fuel duty by 5 pence for a full year – only the second cut in twenty years (HMT, Spring Statement 2022, 23 March 2022, link).
- £565 million has been provided to the Welsh, Scottish, and Northern Irish governments to allow them to implement their own council tax rebate (DLUHC, Guidance, 16 March 2022, link).
- Where council tax is paid by direct debit, households will automatically receive the £150 rebate in April 2022. Households which do not pay by direct debt will be contacted by their council and made aware of the scheme (DLUHC, Guidance, 16 March 2022, link).
Photo by Nick Fewings on Unsplash
