Thousands of struggling families across the country could be forced to wait for their £150 council tax rebate entitlement for months.
National Energy Action, an independent charity that aims to combat fuel poverty across England, Wales and Northern Ireland, said people who don't use direct debit to pay their council tax are likely to be most affected by administrative delays and are therefore facing long waits for the all-important pay-out - which many desperately need to help pay energy costs and other urgent bills.
The £150 council tax rebate was announced by Chancellor Rishi Sunak earlier this year and was introduced to help people struggling with the cost of living crisis. In England and Scotland, people living in council tax Band A to Band D properties are eligible for the rebate, whilst in Wales the rebate is also being given to people in Band E to H homes too.
READ MORE: When Council Tax Rebate will be paid in every borough of Greater Manchester
It's estimated that around 30 million households in England, around 1.9million homes in Scotland and around 1 million homes in Wales will receive the one-off £150 payment. Whilst the UK government has demanded local councils pay all eligible residents by September 2022 "at the latest" - and many started paying out rebates as soon as the scheme allowed them to in April - some local councils are understood to be behind on their scheduled payments.
People who pay their council tax by direct debit are expected to receive their rebate before those who pay their council tax in a different way. This is because paying by direct debit is a quicker process, so paying a rebate is likely to be quicker too.
Last month, we contacted local councils across Manchester to find out when the Council Tax Rebate would be paid - and many councils agreed that people who don't pay their council tax by direct debit are likely to receive their rebate after those who do.
Bury Council, for example, explained that those who pay council tax by direct debit would receive their rebate quicker than others because "we already hold your bank details" whereas those who don't pay by direct debit may have to be contacted directly to get them.
Whilst residents who pay their council tax to Manchester City Council were also advised that rebate payments to those who do not pay their council tax by direct debit would come after those who do pay by direct debit.
A spokesperson for Manchester City Council previously explained: "The quickest and easiest way to claim the rebate is by setting up a Director Debit to pay Council Tax. However, there will be a system in place for those people who do not pay by Direct Debit - and help will be available to those who cannot claim online to phone the Council and be supported through an assisted application process. This is a major exercise for the Council but we are confident that everyone who wants to claim the £150 will be able to."
Who is affected by the delay in rebate payments?
It's understood that people who do not pay their council tax by direct debit are most likely to face a delay receiving their rebate, as their local council do not have their banking or financial details on file so have to contact them again to arrange a rebate.
According to the National Energy Action charity, it is usually the families who are most struggling financially who do not pay bills or council tax by direct debit. This could be because they don't have a bank account or simply because they manage their finances in a different way and pay bills whenever they can, rather than on a scheduled date.
"There are serious concerns that those with the greatest need will be least able to access the money," chief executive of the National Energy Action, Adam Scorer told the BBC.
