SNP finance secretary Kate Forbes announced on 10 February 2022 that 73% of Scottish households, 1.85 million in total, would receive a £150 council tax rebate in April 20221. The announcement came a week after Chancellor Rishi Sunak set out equivalent help for England in his statement of 3 February 2022, which he said aimed to "take the sting" out of price rises and spread the extra energy costs over time1.
In Scotland the rebates go to households in all council tax bands that are currently part of the council tax reduction scheme, plus those in council tax bands A to D1. Forbes indicated a preference for the rebate to be distributed as a payment, but local authorities also have the option to issue it as a council tax credit if necessary1. The Scottish scheme followed the English one in not being means-tested, on the Chancellor's reasoning that price rises are affecting those on middle incomes as well as lower incomes1.
The rebates sit alongside a wider package. Ofgem announced that the energy price cap would rise by £693 a year in England, Scotland and Wales from April, taking the average customer's bill to £1,9711. All domestic electricity customers are to receive a £200 credit on their energy bill in October 2022, which the government will initially meet but which customers repay in £40 instalments over five years from 20231. Local authorities are also to receive a £144m discretionary fund for those on low incomes and vulnerable residents, particularly people who do not pay council tax and so cannot receive the rebate, or who pay council tax on properties in bands E to H1.
| Nation | Rebate | Eligibility |
|---|---|---|
| England | £150 | Council tax bands A to D1 |
| Scotland | £150 | Council tax reduction scheme, plus bands A to D1 |
| Wales | £150 | Bands A to D, and the council tax reduction scheme1 |
Welsh finance minister Rebecca Evans revealed similar measures on 15 February 2022, with £150 rebates issued "as soon as possible" to Welsh households in bands A to D and those in the council tax reduction scheme1. As council tax systems in Scotland, Wales and Northern Ireland work differently from England's, the devolved nations are expected to receive £565m of Barnett funding as a result of the English rebates1. Northern Ireland will be funded with around £150m of comparable funding through the Barnett formula next year, as energy policy is devolved1.
"On 10 February, Kate Forbes announced that 73% of Scottish households would also receive a £150 council tax rebate in April 2022."
Why it matters for households
The rebate is a one-off payment against council tax, not a reduction in energy costs, and it does not change how a home is heated or how much gas and electricity it uses. For a household in Scotland, the £150 arrives in April, the same month the price cap rise takes effect, so it offsets part of the increase rather than removing it1. Households that do not pay council tax, including many on the lowest incomes, fall outside the rebate and are instead directed to the local authority discretionary fund, where how much help is given and who is eligible varies between councils1. The £200 October credit is a loan recovered through bills from 2023, so it defers cost rather than reducing it1. None of the measures in the announcement changes a property's underlying demand for energy, which is what energy efficiency measures and how a Scottish home is heated determine over the longer term.
What happens next
Local authorities are expected to credit people's accounts with £150 in April, using saved bank account details where payment is by direct debit1. The £200 energy bill credit is due in October 2022, with repayment in £40 instalments beginning in 20231. The Chancellor confirmed plans to expand eligibility for the Warm Homes Discount, expected to bring 3 million households into the scheme, with a £10 uplift to £150 from October; the government says more detail on which households will qualify will be published after a consultation1.