East Riding Council working on tax rebates for no bank detail households
It's looking at ways to get April's £150 tax rebate to the tens of thousands locals it does not hold bank details for
Last updated 25th Feb 2022
East Riding Council is studying ways to get April’s £150 tax rebate to the tends of thousands locals it does not hold bank details for.
An East Riding Council spokesperson said County Hall officials were working to find the most effective and efficient means of getting the rebate to those without a direct debit.
The spokesperson added affected locals would be informed once more details on a scheme to get the money to them has been drawn up.
It comes as questions have been raised as to how the £150 council tax rebate would be paid to those who do not use direct debits.
Councils plan to pay the rebate, unveiled by Chancellor Rishi Sunak earlier this month, to locals directly into their bank accounts.
But East Riding Council’s spokesperson told LDRS they do not have direct debit details for some 30,000 locals who pay council tax by other means.
Hull City Council’s Chief Finance Officer David Bell to members of the authority earlier this month they did not have bank details for around 60,000 households eligible for the rebate.
The official added his team was awaiting further government guidance on how to get the rebate to those households, many of whom pay council tax in cash.
It follows Mr Sunak’s announcement that households will receive £150 in April to ease the blow of rocketing energy bills.
The chancellor unveiled the rebate alongside a £200 discount on energy bills, to be paid back in £40 instalments over five years from 2023.
Council tax Band A to D households are eligible for the rebate, meaning 99 per cent of Hull homes and 83 per cent in the East Riding will get it.
Mr Sunak said the payments and discounts were designed to address the number one issue on people’s minds, the rising cost of living.
The chancellor said: “The Government is stepping in with direct support that will help around 28m 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.”
But Hull City Council Finance Portfolio Holder Cllr Phil Webster said VAT still being charged on energy bills would mean many would in reality get nothing.
Cllr Webster said: “For some people living in rented accommodation the rebate will go straight to a landlord not to the person actually living there.”
East Riding Council’s spokesperson said it received guidance from the Government on Wednesday, February 23 setting out the verification process for the rebates and how to stop fraud.
The spokesperson said: “The guidance also provided some options around how we may pay those without a direct debit account, across the East Riding this is estimated to be around 30,000 council tax accounts.
“We are still working through the detailed guidance with the hope that we can find a method which is both efficient and effective for our residents and the council.
“We will update our website and will advise residents as soon as we have more information.”