DELAYS TO FUEL REBATES

Many local councils in England have failed to pay the £150 council tax discount to help with fuel bills by the original deadline of the end of April. The money is due to go to households in Council Tax bands A, B, C, and D.

The Chancellor Rishi Sunak told Parliament six times on 3 February that £150 would be paid 'in April'. He announced it by saying 

We are going to give people a £150 council tax rebate to help with the cost of energy in April, and this discount will not need to be repaid (Hansard col.472).

Answering questions from MPs he repeated five more times that the money would be paid 'in April', explaining to one MP  

By using the council tax system, we can get money to people faster - £150 in April (Hansard col.479).

Later at a Downing Street briefing and in an interview on BBC Newscast he repeated that it would be given 'in April' . The Treasury confirmed that date in a tweet 

In April, 80% of UK households will get a £150 council tax rebate to help manage rising global energy costs.

The Treasury used exactly the same wording on its Facebook page of 3 February and linked to a video of the Chancellor saying to the camera 

Secondly, in April, we're going to give a £150 council tax rebate to households in bands A to D to help with the immediate costs of energy.

A Factsheet issued by the Treasury at the time (a Treasury press officer referred to it in an email to me on 3 February as 'our factsheet') also confirmed the money would be paid 'in April'. 

A Council Tax Information Letter dated 14 February 2022 from the Department for Levelling Up, Housing & Communities (DLUHC) to local authorities in England says

On 3 February 2022, the Department issued a Council Tax Information Letter (CTIL) summarising the Government’s announcement that an Energy Bills Rebate will be provided to households in England in April 2022 to help protect them from rising energy costs.

Deadline changed

But at some stage the Treasury Factsheet was amended to the one now available online with a url indicating it is 'v.2' and the deadline has been changed to 'from April'.

Despite the evidence of Parliament, Twitter, Facebook, and the Factsheet that the original deadline was to pay the money 'in April' the Treasury claimed in a statement to journalists on 30 April 2022 that 

We’ve always been clear...that the £150 council tax rebate to help with the cost of living would be paid “from” April.

It referred to its press release of 3 February which did use the phrase 'from April'. But in Notes to Editors (labelled 'Further Information' in the version now online) it added 

We expect the vast majority of people who pay by Direct Debit to receive this money in April...for households in Bands A-D who do not pay by Direct Debit, their councils will be ready to process their claims in April.

Later guidance from the DLUHC also uses the phrase 'from April'. 

All Council Tax Rebate grants should be paid as soon as possible from April 

Original deadline missed

It is the original deadline set by the Chancellor and the Treasury of 'in April' which local councils up and down England have not met. Some did pay in April, others have said it will be May or even June before households on Direct Debit are paid and it could be as late as 30 September before those who pay in other ways get the £150. The end of September is the final deadline set by the Government for the payments to be made and after that it has made clear that any money not spent by councils on the rebate by 30 November 2022 would be taken back.

What to do

If you live in a band A-D home in England and are still waiting for your council tax Energy Bills Rebate the councils do not want you to call them. Check your council's website, though many of those I have seen have only very sparse information. 

• If you pay by Direct Debit the rebate should be paid automatically. If it has not been credited to your bank account by the end of June you should contact the council and ask when you will be paid. Remind the council that the Chancellor and the Treasury initially promised the payment 'in April'.
• People who do not pay by Direct Debit will probably have to wait longer. This group will include pensioners who get their council tax reduced to zero because of their low income. If the council has not contacted you by the end of June to ask for bank details then you should call the council and ask why. Remind the council that the Treasury said councils would be ready to process these claims 'in April' and that 'almost all households should see the full benefit by May'.

If you live in a band E, F, G, or H home but you are in hardship and need help with your energy bills you will have to apply to the council for money from the Discretionary Fund which the Government has provided to all councils in England.

Rest of the UK

In Scotland and Wales the payment is due to everyone in a band A-D home and is extended in both countries to people in higher bands E-H who get council tax reduction due to their low income. Both countries also have some extra funding to help those who fall outside the scope of the payment but are still in hardship. 

In Scotland councils can make the payment by reducing the council tax bill by £150 and many have done that. 

In Northern Ireland there is no council tax and no decision has yet been taken about how the payment will be made.

Version 1.10

3 May 2022