Energy bills: Millions of households unable to claim £150 council tax rebate | Personal Finance | Finance
According to Age UK, 4.5 million households will not be eligible for the rebate support due to not meeting the qualifying criteria. Of the older households who are ineligible for the council tax discount, the charity reports that 21 percent of them are living in poverty. This comes as energy bills are expected to reach as high as £2,800 annually by the end of the year.
Through the rebate, households in bands A to D will get a £150 discount on their council tax bill. Every Briton in these tax brackets make up 80 percent of all people in the country, according to Government statistics.
Eligible households will need to worry about applications as the rebate will be automatically given to eligible households. Households also do not need to pay back the £150 discount to their local council which will come as a relief to many.
Recently, the Government has introduced a wave of additional support to tackle the cost of living crisis, to coincide with the rebate.
The council tax rebate will be paid directly to claimants and will not be deducted from their final bill. Hypothetically, if someone pays their council tax by direct debit, the rebate should be sent straight to their bank account.
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If someone does not pay off their tax bill via this payment method, their local council will get in touch to address how the rebate will be delivered.
As well as this, the Council Tax Discretionary Relief (CTDR) is available for those who are unable to pay their bill due to exceptional circumstances and claim the council tax reduction.
Many Britons affected by this issue have reached out to Age UK to tell how they are worried about the growing cost of living crisis.
One woman named Margaret, who currently claims Pension Credit, shared why she is concerned about her finances going forward.
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She said: “I am 72 and on a low income. The rises will affect me personally because I am on Pension Credit and already ration my energy use so that I can afford the bills. I feel very anxious about it.”
Speaking to Age UK, another woman named Norma added: “The uncertainty regarding the energy bills along with increases in food and clothing is stressful and the future is looking bleak.
“I never imagined that this country would leave me, at 81 and disabled, feeling helpless and insecure.”
Another woman called Rachel explained: “My husband has advanced Alzheimer’s, is totally bedbound, doubly incontinent and my daughter and I care for him completely at home.
A Government spokesman said: “We recognise the pressures people are facing with the cost of living, which is why we announced last month £9.1billion to support the majority of households with their energy bills.
“The energy price cap continues to insulate millions of customers from volatile global gas prices, which is on top of existing schemes targeted at vulnerable and low-income households.
“There is significant volatility in the wholesale price of gas but as we have said, the Government will continue to monitor developments and the consequences for the cost of living, and will be ready to take further steps to support households if needed.”
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