More information about the energy bill discount scheme and council tax energy rebate.

The government has announced a package of support worth £9.1 billion in 2022/23, to help households with rising energy bills. 

This includes: 

  • Energy bill discount scheme - a £200 discount on energy bills this autumn
  • Council tax energy rebate - a £150 non-repayable council tax rebate for all households that are in bands A to D in England
  • Discretionary council tax energy rebate - £144 million to support households who need support but are not eligible for the rebate

Energy bill discount scheme

Domestic energy customers will receive a £200 cash discount on their bills this autumn. Customers will pay back the discount automatically in equal instalments over five years, starting from financial year 2023/24, when wholesale gas prices are expected to fall.  The aim is to help spread the increased costs of prices over time to make bills more manageable. 

The government will provide funding to all suppliers for them to pass on to their customers from October. The Department for Business, Energy and Industrial Strategy will set out more detail on this policy in a consultation later in the spring. 

Local authorities are not responsible for this scheme. 

Council tax energy rebate

Households in England in council tax bands A to D on 1 April 2022, who are not exempt from council tax, will be eligible for a £150 rebate payment from April this year. This also includes band E homes that have a disabled band reduction to a band D.

The rebate will be made by local authorities as a one-off payment to households. This payment won't have to be repaid. 

Around 80% of households in England are in council tax bands A to D, so will benefit from this rebate. The rebate will not be paid for second homes or empty properties. 

Households in England in bands A to D that pay less than £150, or do not pay council tax as a result of Local Council Tax Support, are eligible for the payment.

Residents in receipt of the Single Person Discount in bands A to D are eligible for the payment.

To be qualify for this payment, your home must also:

  • Be occupied as a sole or main residence, and
  • Be a chargeable property for council tax, or be exempt from paying council tax for one of the following reasons:
    • The property is occupied only by students
    • The property is only occupied by people under 18
    • The property is occupied by someone with a severe mental impairment
    • The property is an occupied annex therefore not chargeable

Local authorities are not responsible for this scheme. 

How payments will be made 

If you pay council tax by direct debit, you should receive the rebate in late April/early May. We encourage you, if you haven't already to sign up to pay their council tax by direct debit.

Payments will not automatically reduce council tax bills and are made as a one-off payment per household. 

If you do not pay your council tax by direct debit, we will update this web page with how to apply for the payment as soon as we have more details. It may be possible to have the £150 credited to your council tax bill if you do not want to supply your bank details.

Discretionary council tax energy rebate   

The discretionary council tax energy rebate is available for those who need help with their energy bills but are not eligible for the £150 payment. This includes households on Universal Credit in higher bands (E to H) or with properties in bands A to D that are exempt from council tax.

We will publish our discretionary scheme once it has been agreed by our Cabinet at the end of April.

Check or challenge your council tax band 

You can check your council tax band on the GOV.UK website.

For more information on challenging your council tax band, visit our council tax bands page

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