Millions of households in England will receive £100 from January to help with energy bills, and now is also a good time to check whether you are paying too much council tax. The Government's new Household Energy Payment will give £100 to up to 20 million households in England living in properties in council tax bands A to D.
If you pay council tax by direct debit, the money will automatically be paid into your bank account. Those who do not pay by direct debit will instead be invited by their council to apply.
Prime Minister's Message on the Payment
Prime Minister Andy Burnham said: "If you're looking for answers on our £100 energy bill payment, read this. If your home is in council tax Bands A-D, we're giving you £100 to help with your energy bills this winter."
"If you pay by direct debit, you don't need to do anything to claim it - it will be paid directly into your bank account. If you don't pay by direct debit, your council will invite you to apply directly. I know this won't fix everything, but I want to do everything I can to help."
How to Lower Your Council Tax Band
If you think your council tax band is too high, you can challenge it and potentially have it lowered, cutting your future bills and possibly getting back money you have overpaid. However, you should carry out two checks before making a challenge, as a review can result in your band staying the same or even being increased. It could also lead to the bands of neighbouring properties being changed.
The first step is to compare your council tax band with similar homes nearby. In England and Wales, you can check council tax bands online through GOV.UK, while people in Scotland can use the Scottish Assessors Association website. If similar properties are in a lower band, this could indicate yours is too high. However, it could instead mean your neighbours have been placed in bands that are too low.
The second step is to look at your property's historic value. Council tax bands in England are based on what properties were worth on April 1, 1991. In Wales, they are based on April 1, 2003. MoneySavingExpert also has a free calculator designed to help estimate historic property values and give you an initial idea of whether your band could be wrong.
Challenging Your Band and Refunds
If both checks suggest your band is too high, you can challenge it. Properties in England and Wales can be challenged through the Valuation Office Agency. In Scotland, challenges are dealt with through the relevant local assessor. People who have been paying council tax on a property for less than six months normally have a legal right to challenge their band. Those without a legal right can still ask for a band review if they believe it is wrong and can provide evidence. If your challenge is successful and your band is lowered, your council will revise your bill and pay any refund that is due.
Who Gets the £100 Payment?
Chancellor John Healey announced the £2.6billion Household Energy Payment in his Autumn Budget. He said: "Let me say this to families at home. I know that with the conflict in the Middle East, rising energy bills are a real worry. I know that people look to government at times like this, not to solve all their problems, but to give them a bit of breathing space."
"So today I'm taking one further step. This winter, for 20 million households in council tax bands A to D, I am announcing a £100 energy payment for households, paid directly into people's bank accounts to deal with rising energy bills."
"That's a £2.6 billion scheme to take the pressure off in the coldest months and see people through to the spring." The scheme applies directly in England, while Scotland, Wales and Northern Ireland are receiving funding to provide similar support. The Government says the scheme will cover an estimated 83% of fuel-stressed households in England and 88% of households in the bottom three income deciles. A further £100million is being given to English councils to provide support to households struggling with energy costs which do not qualify for the £100 payment.
