Millions of people should look to set up a direct debit to pay
their council tax bill from April so they can receive their £150
energy rebate payment as quickly as possible, the Local
Government Association says today.
The Energy Rebate scheme was announced by the Chancellor earlier
this month to help people cope with rising energy bills. It will
see eligible households in England in Council Tax Bands A-D
properties receive a £150 energy rebate payment from their
council from April this year.
This includes those who already receive help with paying some or
all of their council bill through local council tax support.
Councils are urging people to set up direct debits so they can
get the payment to them as quickly as possible. For example,
Hull City Council said
60,000 households in the city do not currently pay their council
tax by direct debit. Almost half of the 37,000
households paying council tax in Dartford do not use direct debit
payments while there are 30,000 people in
Bolton without direct debit arrangements in place.
Getting the money to council taxpayers without direct debit
arrangements will take longer as councils will need to attempt to
contact them about the rebate scheme and will also have to
undertake pre-payment checks.
Councils will also receive £144 million in discretionary funding
to enable them to offer help to households who are not eligible
under the terms of the core scheme, but who are struggling to
meet the costs of rising energy bills.
Many households are likely to be economically vulnerable for some
time to come. Going forward, the LGA said councils want to work
with government on an effective long-term solution to preventing
poverty and disadvantage that moves away from providing crisis
support towards improving life chances and building resilience.
Cllr Shaun Davies, Chair of the LGA’s Resources Board,
said:
“This year will be tougher than most, particularly for those on
lower incomes, so it is good that the Government is stepping in
to provide financial support to help ease these pressures.
“Having a direct debit set up will mean councils can
automatically pay the £150 energy rebate straight into your bank
account. It is quick and easy to set up to pay council tax by
direct debit via your council’s website.
“You can still get the money if you don't have a direct debit set
up, but it could take longer as your council will have to contact
you and then you'll have to make a claim.
“Councils will also now be looking to set up their local schemes
to offer discretionary help to households who are not eligible
under the terms of the rebate scheme, but who are struggling to
meet the costs of rising energy bills.”
