Funding for the Council Tax Rebate was paid to billing authorities in England in March 2022, according to official billing authority guidance issued by the Secretary of State for Levelling Up, Housing and Communities1. The rebate was announced on 3 February 2022 as part of a package of support for rising energy costs1.
The core payment is a £150 non-repayable rebate for households in England in council tax bands A to D1. The guidance states that the government expects billing authorities to provide a £150 one-off payment to a liable council tax payer, or an occupant where the property is exempt, where the property meets all the criteria on 1 April 20221. Eligibility is determined by the position at the end of that day1. Only one £150 payment should be made per household, regardless of the number of occupants or liable council taxpayers1.
Alongside the core rebate, £144 million of discretionary funding was allocated to billing authorities to support any household in need, regardless of council tax band1. Allocations were calculated using the index of multiple deprivation and the estimated number of local council tax support claimants in bands E to H1. The guidance states that allocations from the discretionary fund should be spent by 30 November 2022, and that any remaining funding will be required to be repaid to government1. In the event of an overspend, no additional funding will be provided1.
The guidance applies to England only1. It states that the devolved administrations will receive around £576 million corresponding funding through the Barnett formula, which will enable them to provide similar support1. The Council Tax (Demand Notices and Reduction Schemes) (England) (Amendment) Regulations 2022 came into force on 12 February 20221. The regulations require council tax demand notices issued to households in respect of 1 April 2022 to include the sentence: "The Government is providing a £150 one-off Energy Bills Rebate for most households in council tax bands A-D"1. Councils must send an accompanying pamphlet to all dwellings in bands A to D, and where it cannot be issued with the demand notice it should be sent in hard copy no later than 28 March 20221.
"Funding will be paid to billing authorities in March 2022."
| Item | Detail |
|---|---|
| Core rebate | £150 per eligible household, bands A to D, England1 |
| Discretionary Fund | £144 million across billing authorities1 |
| Funding paid to councils | March 20221 |
| Payments to be made by | 30 September 20221 |
| Discretionary fund spent by | 30 November 20221 |
The guidance states that all payments made under the Council Tax Rebate or Discretionary Fund are non-taxable, and are to be treated as local welfare provision, so will not be taken into account in the calculation of income related benefits1.
Why it matters for households
The rebate was paid through the council tax system rather than through energy suppliers, so eligibility turned on a property's council tax band and occupation status on 1 April 2022 rather than on energy use or supplier. Households in bands A to D received £150 automatically where councils held live direct debit instructions, while others had to make a claim1. The guidance notes that a property with a nil council tax liability as a result of local council tax support was still eligible, and that second homes and unoccupied properties were not1. The separate £400 grant for all domestic energy customers, described in the same guidance as the Energy Bill Support Scheme, was to appear as a credit from energy suppliers from October 2022 onwards1. For a household's energy independence, the rebate reduced the amount owed on bills in 2022-23 but did not change the underlying cost of energy or the property's efficiency.
What happens next
The guidance sets out that all Council Tax Rebate grants should be paid as soon as possible from April 2022, and that all payments within scope of the reconciliation process must have been made by 30 September 20221. The government said it would run a reconciliation exercise against actual expenditure later in 2022, with any over-funding repaid to government and any under-funding settled with billing authorities1. Allocations from the discretionary fund should be spent by 30 November 20221.