Will the £150 council tax rebate in April affect my Universal Credit or benefit payments?

HOUSEHOLDS across the country will soon be getting a £150 payment through a council tax rebate.

The cash is designed to help anyone struggling with bills which are set to rise in April.

It's estimated that four in every five households will get the £150 council tax cash.

But will the extra payment affect your benefits, like Universal Credit payments? Here, we explain all…

What is the £150 council tax rebate and who will get it?

The help with council tax bills was announced by the government to help with the cost of living crisis which has seen bills and household costs rise.

Those in council tax bands A to D will get the cash – around 80% of homes – but those in bands E to H are among those missing out.

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You can find out which band you're in by using the government's search tool – you just need to enter your postcode.

If you don't already pay your council tax bill by direct debit, setting it up will ensure you get the cash quicker straight into your bank account.

How do I get the council tax discount?

Those who qualify for the £150 rebate will get the payment automatically – you won't have to apply.

Payments will start in April and you won't have to give the money back.

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The government says it expects the vast majority of people to get payments in April.

Councils will make the payments automatically where they hold bank details, or will contact households to arrange a payment method if they don't.

Will the £150 council tax rebate affect my Universal Credit or benefit payments?

Payments made under the council tax rebate scheme will be "treated as local welfare provision and therefore will not be taken into account in the calculation of income related benefits".

That's according to the government website, so in short there payment won't affect your Universal Credit or other benefit payments.

Some income does affect the benefits you get, but the good news is that the council tax rebate is not one of them.

More help you can get with council tax

If you don't qualify for the £150 council tax rebate you could still be eligible for other help.

A separate £144million fund has also been launched which local councils can dish out to vulnerable and low income households.

The latest guidance says the support will be worth up to £150 and each council has been given a different amount.

The pot of cash each area gets depends on size and need, so for example Birmingham has £3.6 million, while the Isles of Scilly have £17,550. 

You could challenge your council tax band if you think it's wrong so you don't miss out on the cash.

But beware a revaluation of your band could put you in a lower band where you pay MORE council tax, so consider the risks – you can read more in our guide.

If you're not already getting a council tax discount it's worth checking if you're eligible.

Single people are entitled to 25% off their bill, while an adult living with a student can get 50% off.

If you are on a low income or receiving benefits, you could eligible for a reduction on your council tax.

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The requirements to get help will vary depending on where you live, so the best first step is to check with your local council.

You can apply for a reduction through the Government website.

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