How to get the £150 council tax rebate paid into your bank account first

MILLIONS of households will soon get a £150 council tax rebate to help ease the burden of rising bills. And Brits can take action now to make sure they get the payment first directly into their bank accounts. Setting up a direct debit to pay your council tax bill means your local authority will have […]

MILLIONS of households will soon get a £150 council tax rebate to help ease the burden of rising bills.

And Brits can take action now to make sure they get the payment first directly into their bank accounts.

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Setting up a direct debit to pay your council tax bill means your local authority will have your details to hand already when the payments go out from April.

You’ll still get the cash if you don’t do this, but it could take longer as the council will have to contact you and then you’ll have to make a claim.

Plus you’ll have to wait for the payment to be processed after the back and forth too.

The help with council tax bills was announced by the government to help with the cost of living crisis which has seen bills and household costs rise.

Those in council tax bands A to D will get the cash – around 80% of homes – but those in bands E to H are among those missing out.

You can find out which band you’re in by using the government’s search tool – you just need to enter your postcode.

If you don’t already pay your council tax bill by direct debit and want to set it up you need to contact your local council directly.

You can find you local council using the gov.uk tool and searching your postcode.

When you set up a direct debit to pay council tax you can choose to pay over 12 months or 10.

If you choose 10 months then your monthly payments will be slightly higher as the bill is spread over less time, but you’ll get two months where you’ll pay nothing at all.

Setting up a direct debit means you’ll have the money taken out of your bank account on the same day each month, so you need to budget for it around this time.

You can usually choose which day of the month this is, so you can time it with pay day when you have money in your account.

If you decide you don’t like paying by direct debit you can always cancel this – but do it through your council.

Never just cancel through your bank as it’s likely to be recorded as a missed payment which can have serious consequences.

You’ll need to choose a new way to pay, like using a debit card to pay online, bank transfer, cheque or paypoint.

Council tax help

There is also a separate £144million fund to be distributed by local authorities for vulnerable people or those on low incomes who are exempt from paying council tax or live in higher council tax bands and won’t get the £150 payment.

You could challenge your council tax band if you think it’s wrong so you don’t miss out on the cash.

But beware a revaluation of your band could put you in a lower band where you pay MORE council tax, so consider the risks – you can read more in our guide.

Those exempt from council tax already won’t get the money either, but if you get council tax support through your local council and it reduces your bill you will get it,

Council tax is devolved to Scotland, Wales and Northern Ireland, so there may be different schemes available there.

If you’re not already getting an existing council tax discount it’s worth checking if you’re eligible.

Single people are entitled to 25% off their bill, while an adult living with a student can get 50% off.

If you are on a low income or receiving benefits, you could eligible for a reduction on your council tax.

The requirements to get help will vary depending on where you live, so the best first step is to check with your local council.

You can apply for a reduction through the Government website.

Energy billpayers will also get a £200 rebate in October to help with rising energy costs.

The energy price cap is set to rise by hundreds of pounds in April and could rise again in the Autumn.

The cash to cover bills will have to be paid back though – unlike council tax payments – at a rate of £40 a year added on to bills over the following five years.

Meanwhile council tax rates are set locally and councils could increase bills by as much as 5% from this April, despite the extra payment.

Here’s how to find out how much your bill will rise by.