Taxpayers not using direct debit may miss £150 rebate

MORE than one million households could miss out on a £150 council tax rebate, with fears taxpayers who do not pay local levies by direct debit are being blocked from government support.

Families that pay their council tax in other ways, such as by cheque, have not received money directly into their bank accounts and are at risk of being left “out in the cold”, experts warned.

About one in three households that do not pay their council tax via direct debit have not applied for the rebate, according to Freedom of Information requests submitted by the Liberal Democrats. The party submitted requests to every local authority in the country.

Of the 155 authorities that responded, there were 3.5million households that pay council tax through means other than direct debit.

However, 1.1million of these had not claimed their debate.

The council tax rebate was launched in the spring to help people navigate the cost of living crisis. It is estimated that eight in 10 English households will receive a rebate worth £150, as the Government temporarily cuts council tax for properties in bands A to D. However, Sir Ed Davey, leader of the Lib Dems, described the rebate as a “botched government scheme” that left families and pensioners out in the cold. He said: “It was clear from the start that payments were never going to reach some of those who need it most, now time is running out to save people from catastrophic energy bills.

“It would have been far simpler to send the money directly to people’s homes, now the only way to protect people is to scrap the energy price rise in October.

“It is a national disgrace that pensioners in Britain will be choosing between heating and eating this winter. Yet we have a zombie government refusing to act even when their own half-baked programmes are proved to be unworkable.”

Households will also receive a further £400 discount on their energy bills this winter. However, the Government is coming under increasing pressure to offer more support to the vulnerable as the cost of living crisis spirals.

Inflation hit a 40-year high of 10.1 per cent in July, and is expected to reach 13 per cent by the end of the year.

Meanwhile, forecasts suggest that the price cap on energy bills could pass £3,500 in October, almost double the level today.