Government announces council tax rebate

Government announces council tax rebate

Chancellor Rishi Sunak has laid out a £9.1bn support plan which is set to offer a helping hand to households, as energy prices soar. The plan includes a loan to cover some of the increased costs and a discount on council tax.

Sunak’s plan comes as the energy price cap rises by 50% to £1,971 from 1 April, representing an increase of £693 to average bills on variable rates.

council tax rebate

Who will receive the rebate?

The government has confirmed that 80% of households in England will receive a £150 council tax rebate on properties from Band A to D from April. This one-off council tax rebate will not need to be repaid.

More than 20 million households are set to benefit from the council tax rebate, which will cost the Treasury an estimated £3bn.

The North West, Yorkshire, North East and the Midlands have the highest number of properties that fall within bands A to D, all of which will benefit from the £150 rebate.

However, properties in London, the South East, the East, and the South West have a lower percentage of homes within bands A to D.

This will see around 1.7 million homes miss out on the rebate compared with 601,000 in the Northern areas.

What is Council Tax?

Council tax is calculated on the valuation band a property falls into and how much the local authority charges for that band.

Council tax goes towards local authorities which can include the fire and rescue authority, the police and crime commissioners as well as covering local costs including bin collections, care for the elderly and police and fire services.

council tax rebate

For more information on council tax, visit the government website.

Got a question? Contact us.

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Emily Dodds

Emily Dodds

Marketing and Business Development Officer

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