A record increase in global gas prices sees energy price cap rise of 54%.
The energy price cap increased on April 1 ,2022, impacting an estimated 22 million people in the process.
The increase is due to a rise in global prices over the last six months.
Here’s how you can check if you’re eligible for the rebate, how to check your tax band and more.
What is the price cap?
The price cap is updated twice a year and tracks the cost of wholesale energy.
It’s ‘for the people’ and stops energy companies from making an excessive amount of money, ensuring customers pay a fair, going rate for energy.
To allow companies to run efficiently, energy companies are allowed to pass on ‘reasonable costs’ and include increases in costs for the companies.
What is the rebate?
The government has announced a £150 one-off payment will be made, to assist with energy costs.
After the world starts to return to life as normal after the numerous Covid-19 lockdowns, energy prices have soared.
In the last year, the price of energy alone has quadrupled.
This rebate will not need to be repaid as it is part of a scheme to help those who may not be able to afford the surge in energy costs.
Who is eligible for a council tax rebate?
Households whose houses are in the A - D council tax bands will receive the £150 council tax rebate.
This means that four out of five households in the UK will benefit from the rebate offered by the government.
Properties such as second homes and empty homes will not be eligible for the rebate.
What if my household isn’t eligible?
To support those who do not qualify for the £150 rebate, councils have been granted an extra £144 million.
This includes people on low incomes, whose houses are in the E - H band.
Further information will be made on how this will operate in your area.
How do I check my tax band?
You may not know what tax band you’re in.
All you need to do is simply go on to the Government’s band checker and you will see the band you’re in.
Simply put in your postcode, and it will tell you instantly.
Alternatively, you can scan a unique QR code on the government website, and it will tell you your tax band.
Just use your phone’s camera, and hold it up to capture the QR code, click the link when it appears and then you can enter your postcode.
How do I receive the rebate?
People who currently pay their council tax via direct debit will receive the money into their bank account automatically.
It was stated the money would be paid in April or May, but now local authorities have until September to pay out, meaning some may have to wait up to four months to receive the money.
You do not need to apply for the rebate.
A process is underway to pay the £150 to residents who do not pay their council tax via direct debit, more information will be provided on this.
It was reported that thousands of families who were due to receive the rebate got it as of Wednesday, 20 April.