What is my council tax band? How to find out if you can get £150 rebate to help tackle energy price cap rise


Low income households are set to receive a £150 council tax rebate in an attempt to abate the cost of living crisis.

People on lower salaries are being hit particularly hard by soaring inflation, which has caused the Bank of England to raise interest rates for the second straight month.

And the situation will only worsen when the energy price cap increases in April.

The Treasury has announced a £150 council tax rebate for everyone living in bands A to D, as a means of support.

Here’s how to find out which band you are in, and whether you will be eligible for the support payment.

Which council tax band am I in?

If you live in England or Wales you can find out your council tax band by entering your postcode into the government website right here.

You can also use this service to challenge your council tax band if you think it is wrong.

Those who live in Scotland will need to use the Scottish Assessors website.

How is the cost of living crisis affecting households?

Energy bills

Energy regulator Ofgem announced the new energy price cap on Thursday, with bills set to rise by 54 per cent from April.

The cap has been increased sharply to £1,971, at a £693 rise.

The current cap is £1,277, which was set last August – a 12 per cent rise on the previous price.

Consultancy Cornwall Insight said the cap could rise to as much as £2,329 for the typical user in October.

Energy prices rose throughout 2021 due to a combination of factors, and the problems are international rather than solely affecting the UK.

See also  Declan Rice's trophy ambitions put Chelsea ahead of Manchester United in summer transfer battle - Omar Garrick

Firstly last winter was particularly cold in Europe, which both drove up demand and used up stored gas supplies.

Demand also increased in China, as well as other parts of Asia, while Russian pipeline gas supplies were lower than expected.

The strain put on companies has led to the collapse of 28 energy firms, who between them were responsible for more than two million homes.

The energy price cap has so far largely protected consumers from the spike in wholesale prices, but this is now set to change.

More from Bills

Food Prices

The cost of the weekly shop rose at its fastest rate in a decade last month, and the cost of goods will continue to climb throughout 2022 according to retailers.

Annual inflation in shops accelerated to 1.5 per cent in January, up from 0.8 per cent in December, according to data released on Wednesday by the British Retail Consortium (BRC).

Market insights group Kantar believes consumers can expect to pay £180 more on average this year for their groceries than last.

National Insurance

Despite calls from Tory backbench MPs to ax its 1.25 percentage point rise in National Insurance, Chancellor Rishi Sunak is pushing ahead and will be imposed at the same time as the hike in energy prices in April.

Those earning the average UK salary of almost £26,000 will have to pay £130 more in National Insurance each year, while those earning more than £50,000 will pay at least £505 more.

Other factors

Average asking rents have increased at the fastest rate on record, while mortgages will be hit by the rise in interest rates.

See also  Pfizer Covid vaccine less effective in children aged between five and 11, study finds

The average spent per household on transport costs was £4,820 last year, as train prices rose by almost 4 per cent. Increasing gas prices will further push up the cost of travel.

Mobile and broadband providers also tend to raise prices based on the inflation rate, plus an addition of around 4 per cent.

This all leads to households facing paying out up to £3,000 a year more for everyday essentials.


inews.co.uk

Related Posts

George Holan

George Holan is chief editor at Plainsmen Post and has articles published in many notable publications in the last decade.

Leave a Reply

Your email address will not be published.