Energy bills rebate: how many Birmingham households are eligible for the Council Tax rebate?

Chancellor Rishi Sunak has announced a £9.1 billion energy bills rebate scheme to protect households affected by the rise in energy bills as Oftgem’s cap increases in April.

It has been estimated that millions of households across the UK will be hit with bill increases of hundreds of pounds.

The Energy Rebate scheme will enable households to receive up to £350 to help with the cost of living.

All domestic electricity customers will get £200 off their energy bills from October - with 80% of households receiving a £150 Council Tax rebate from April.

The £200 Energy Bills rebate will be applied to the bills of domestic electricity customers in October by energy suppliers.

The discount will then be automatically recovered from people’s bills in equal £40 installments over the next five years.

This will begin from 2023 when global wholesale gas prices are expected to come down.

Households in England, which are in council tax bands A-D, will also receive a £150 Council Tax rebate.

The rebate to bills will be made directly by local authorities from April. This will not need to be repaid.

This one-off payment will benefit around 80 per cent of all homes in England and is £1 billion more generous and more targeted towards lower-income families than a VAT cut on energy bills.

In Birmingham the total number of households that will be eligible for the £150 Council Tax rebate is 387,416.

The number of households in Council Tax Band A is: 149,046

In Band B there are 123,847

In Band C there are 76,565

In Band D there are 37,958

On top of this discount, discretionary funding of £144 million will also be provided to support vulnerable people and individuals on low incomes that do not pay Council Tax, or that pay Council Tax for properties in Bands E-H.

How much are energy bills likely to increase by?

Estimates say the prices could rise by more than £700 from April and a further £400 in the winter, as the price cap is reviewed each six months.

Prices are increasing because wholesale gas prices have gone up which has put a strain on energy companies, with many going bust already.

The energy price cap is the maximum price suppliers can charge customers on a standard or default tariff.

Are there any other measures in place to help people with energy bills?

The Chancellor also today confirmed plans to go ahead with existing proposals to expand eligibility for the Warm Home Discount by almost a third so that three million vulnerable households will now benefit, as well as the planned £10 uplift to £150 from October. This follows a consultation by the Department for Business, Energy and Industrial Strategy to reform the policy so that more people will benefit.

Today’s energy intervention comes on top of the £12 billion support package the Government is already providing to ease growing cost of living pressures. This includes Cold Weather and Winter Fuel Payments, increasing the National Living Wage to £9.50 in April and providing an effective tax cut for those on Universal Credit - allowing 1.9 million households to keep an average of £1,000 per year.

What has Rishi Sunak said about the Energy bills rebate in his own words?

Chancellor of the Exchequer Rishi Sunak said: “Right now, I know the number one issue on people’s minds is the rising cost of living.

“That’s why the Government is stepping in with direct support that will help around 28 million households with their rising energy costs over the next year.

“We stood behind British people and businesses throughout the pandemic and it’s right we continue to do that as our economy recovers in the months ahead.”

What has the Prime Minister said about the Energy Bills Rebate scheme in his own words?

Prime Minister Boris Johnson said: “During the pandemic this Government has acted decisively to protect jobs and livelihoods, particularly for those on the lowest incomes.

“But today we recognise the real and growing concerns people have about the cost of living – and once again we are taking action.

“We are delivering a new package of targeted support to help with the financial pressures felt by families right across the country, with additional help for those most in need.

“This builds on the changes we’ve made to Universal Credit to put £1,000 more per year into the pockets of hardworking people and the increase to the National Living Wage to advance our vision for a high-wage and financially secure Britain.”

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