posted on 03 February 2022, updated on 03 February 2022
Chancellor Rishi Sunak has announced a £150 rebate on council tax bills for homes in bands A-D, which will benefit 80% of households, to help ease the pain of surging energy bills.
As the council tax system is devolved, governments will receive total Barnett consequentials of around £565million. This comprises around £290million for the Scottish government, £175million for the Welsh government and £100 million for the Northern Ireland executive. The devolved administrations will be able to choose whether to spend this funding this year or next year.
The chancellor has said that a payment of £150 to households in (English) council tax bands A-D, plus a rebate to households of £200, will be worth the equivalent of more than 2.5% of net income in 2022-23 to the poorest tenth of households, compared with less than 0.5% to the richest tenth.