Martin Lewis is warning households over a common misconception which could see them miss out on £150.
Millions of people in England are eligible for savings on their council tax bills this month, following an announcement from Chancellor Rishi Sunak in February. Everyone who lives in council tax bands A-D will see a discount automatically applied to their bill in April.
Around 20 million households in council tax bands A to D – including 95% of rented properties – will receive a £3bn council tax rebate, which does not have to be repaid. But not everybody who is eligible will see the money land in their bank account.
READ MORE: Martin Lewis’ dire warning to those on fixed rate energy tariffs
This is because you need to have a direct debit payment set up for your council tax. If you do not, you will instead be “invited” to claim the money back from your local authority. You can still get the money this way, but it may take longer and be more hassle.
Mr Lewis said he is hearing some people say they don’t want the money – as it is a loan they will have to repay. But this isn’t true.
Taking to Twitter, the Money Saving Expert founder said: “IMPORTANT. Concerning the £150 energy rebate on Band A-D council tax due April/May for most Some saying ‘I want to refuse it, I don’t want a loan!’ This ISN’T a loan That’s the loan-not-loan scheme coming in October (and isn’t refusable) This one doesn’t need repaying.”
The confusion seems to have come about over the Energy Bills Support Scheme which will see household energy bills reduced by £200 in October. This will then have to be repaid later, at a rate of £40 per year over five years.
If you do not have a direct debit payment set up for your council tax, contact your local authority in order to claim the £150 discount. It will not need to be paid back.
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