Millions of households still waiting for £150 council tax rebate: Some of the poorest people in England and Wales are suffering delays due to not having direct debit, charity warns
- National Energy Action warned the poorest households are among hardest hit
- They tend to not have bank accounts or manage finances on more ad hoc basis
- Rebate was brought in to help struggling families cope with soaring energy bills
The council tax rebate designed to offset soaring energy bills is being held back from some of Britain’s poorest families, a charity has warned.
Councils in England and Wales were expected to start paying the £150 sums in April, but a report by National Energy Action (NEA) has found millions are still waiting for the aid.
While the government has ordered them to make the payouts without further delay, councils say they are struggling to issue them at short notice.
According to the BBC, people who pay their council tax by direct debit seem to be receiving their rebates before those that do not.
This is because the 331 billing authorities responsible for issuing the funds find it easier to process the payments if they already have a person’s banking details.
But the NEA said it is typically the poorest households who do not have direct debits set up, putting them at a disadvantage.
Many do not have bank accounts or manage their finances on a more ad hoc basis.
The rebate was brought in to help struggling families after the energy price cap soared by £693 for the average household from last month.
Councils in England and Wales were expected to start paying the £150 sums in April, but a report by National Energy Action (NEA) has found millions are still waiting for the aid
The council tax rebate is part of a £9.1 billion government support package announced by chancellor Rishi Sunak (pictured) in February
The government has given councils a final deadline of September to make the payments.
‘There are serious concerns that those with the greatest need will be least able to access the money,’ said NEA chief executive Adam Scorer.
More than 280 councils have said payments should be made directly into people’s bank accounts by the end of May, reports the BBC.
However the vast majority confirmed that those who do not have a direct debit set up were likely to be asked to make an application online or over the phone in the coming weeks.
Just 15 councils said they were sending out Post Office vouchers to those who do not pay by direct debit, which they can exchange for cash.
In areas like Rochdale, more than a third of residents do not pay council tax by direct debit.
Neil Emmott, who leads Rochdale Borough Council, accused the government of not understanding the complexity of the policy.
‘I think governments sat in London don’t always necessarily know what’s taking place,’ he told the BBC.
According to the BBC, people who pay their council tax by direct debit seem to be receiving their rebates before those that do not. (Stock image)
‘It’s not fair, but give me an alternative way to do this?’
He added: ‘The most vulnerable need this payment, and we are getting our skates on to get payments to those people as soon as possible.’
The council is currently processing 50,000 rebates via direct debit and has just started to contact the 30,000 who do not have direct debits via post.
Meanwhile, at a meeting of the poverty-tackling community hub the Lighthouse Project, in Manchester, residents slammed the handling of the rebates as ‘unfair’.
Chris O’Keefe, who pays his council tax weekly, said: ‘Just because you don’t pay by direct debit, it shouldn’t mean you’re not a priority.
‘We should all be treated the same.’
Scores of residents took to social media today to ask their local authorities when they would be receiving their rebates, as they urged their councils to ‘do better’.
Many said they had not received theirs despite paying their council tax by direct debit.
Rayos Adewale, based in Croydon, wrote: ‘Those of us with direct debit haven’t received anything, so it doesn’t look great for those who do not pay that way.’
Hayley Gunston, of Brighton, said: ‘Residents in Brighton and Hove haven’t even started to get their council tax rebate yet of £150, regardless of how you pay your council tax.
‘We’ve been told to expect payment by September!’
Scores of residents took to social media today to ask their local authorities when they would be receiving their rebates, as they urged their councils to ‘do better’.
In February, chancellor Rishi Sunak announced the support payment for eligible households in council tax bands A to D – affecting around 20 million households.
It is being distributed to help with the cost of living crisis — but some families could be left waiting until September for their cash to come through.
In South Derbyshire, 39,000 people were told in April that they wouldn’t receive the money until at least June due to software problems, in a letter seen by MoneySavingExpert.com.
A spokesperson for the district council said that it is working with payment firm Capita on the issue.
‘The earliest that they [Capita] can provide the software that will allow us to distribute the £150 rebate is late April,’ the spokesperson said.
‘This software will require thorough testing before it can be used. If all goes well with the testing, residents can expect to receive their £150 rebate in late May or early June.’
Each council in England is responsible for choosing how it runs its claims processes, including which software supplier it uses.
This means the timing of payments will vary across the country. Those likely to receive their payments first will have a direct debit already set up, because their bank details are on the council’s system.
Those who do not pay by direct debit could wait longer for their money as councils will need to contact them separately to arrange a different way to pay.
In Scotland, some councils may choose to take £150 off council tax bills, instead of giving the payment out.
Bassetlaw District Council in Nottinghamshire previously said payments may not arrive until September.
In April, Chris Ward, director of finance and resources at Portsmouth City Council, said they were working hard to get the system up and running but added: ‘The software for the rebates isn’t provided by the government so each council has to decide how to administer the scheme and what software to use.
‘A software upgrade has been developed by our provider and we’re testing it.’
The rebate is part of a £9.1 billion government support package announced in February.
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