Rishi Sunak announces £150 council tax rebate - and it WON'T need to be repaid
CHANCELLOR Rishi Sunak has confirmed that 80 percent of households across the UK will receive £150 rebate on their council tax bill.
Rishi Sunak announces plans to help with energy cost rise
The one-off financial assistance will not need to be paid back, helping households facing a time of unprecedented cost and economic uncertainty as the world recovers from the worst of COVID-19. Households in bands A to D will receive the rebate.
This will be to assist low income families who will likely be hit hardest by upcoming price increases and tax hikes.
Currently, the cost of living is higher than it ever has been in the last 30 years, with families expecting to fork out an additional £2,000 this year just to keep up with the energy price cap rise.
It is estimated that households will find themselves £3,000 worse off this year in total.
This is mostly due to skyrocketing inflation, which is reported to add £180 annually to grocery bills.
Energy price cap rise: Where YOUR money goes in chart breakdown of household energy bills
Energy prices are due to skyrocket as regulators announced the staggering new price cap. Here's how your bills are broken down.
Alongside all of this, National Insurance hikes will be stealing a sizeable chunk off of the working class paycheques.
As a result of all of these influences battering the low income working class, the council tax rebate is expected to help more than 15 million households.
The poorest households are said to receive the biggest rebates with this alone estimated to cost Treasury £9billion.
HM Treasury has announced these rebates helping the poorest Britains alongside a package of other measures to help households stay afloat.
“First, we will spread the worst of the extra cost of this year's energy price shock over time. All domestic electricity customers will receive an upfront discount on their bills worth £200.
“We’re going to give people £150 council tax rebate to help with the cost of energy in April and this discount won’t need to be repaid.
"I do want to be clear with the House that we are deliberately not just giving support to people on benefits.
Will Sunak's Council Tax cut help you? Let us know in the comments section
“The third part of our plan will provide local authorities with a discretionary fund of nearly £150million to help those lower income households who happen to live in higher council tax properties and households in bands A to D who are exempt from council tax.”
It comes as Britons face a quadruple hit of price rises.
Dies beinhaltet:
- Average gas and electric bills reaching £2,000 a years with the Ofgem price cap increasing
- Interest rates set to double from 0.25 percent to 0.5 percent
- Highest price rises for consumers in nearly a decade
- Petrol prices increasing to record levels.
Ofgem has announced the £700 energy price increase with another rise expected in autumn.
Interest rate rises may appear to be a saving grace however, like with the base rate rise at the end of 2021, this will almost immediately impact mortgage bills while savers wait around to see the effects.
Alongside the council tax rebate expectation, Ministers will be providing billions of pounds worth of loans to energy firms which should be passed on directly to their hardest hit customers.
This has been dubbed the “smoothing” mechanism and will see Britons paying less now only to face huge sums over several years as the loans are paid back.