Over a third of Oldham households will NOT automatically receive council tax rebate

Nearly half a million households across Greater Manchester will not automatically receive the £150 council tax rebate they are due in April.

The payment was promised by Chancellor Rishi Sunak last month in response to rising energy bills which are set to sky-rocket when the price cap increases.

All properties in council tax bands A to D are entitled to the £150 payment – but only those paying council tax by direct debit will receive it automatically.

But more than 460,000 households across Greater Manchester currently pay council tax manually meaning they will have to apply to receive the rebate.

These residents either pay their bills by visiting their council’s website every month, make their payments by phone or visit their town hall to pay in person.

Some have suggested that the government did not account for these residents in the rollout of the rebate which was announced last month.

Councils are now undertaking the ‘major exercise’ of writing to all households which do not pay bills by direct debit, advising them how to claim the £150.

A flyer from the Department for Levelling Up, Housing and Communities with information about the rebate is to be sent out with all annual council tax bills.

Authorities are encouraging residents to set up a direct debit so they receive the rebate as quickly as possible – but alternative plans are being put in place.

The government has confirmed it will cover these administration costs.

The Local Democracy Reporting Service asked our local authorities what they are doing to help residents claim the rebate.

Oldham

Around 36 pc of households in Oldham do not pay council tax by direct debit.

This figure includes households which have no balance to pay due to discounts or exemption, but who will be entitled to the £150 council tax energy rebate.

The local authority will issue leaflets about the rebate – encouraging people to set up a direct debit – with all council tax bills, costing approximately £7,500.

But residents will not miss out on the rebate if they do not set up a direct debit.

The council will shortly publicise its plans to make payments to those not in receipt of direct debit and details about the discretionary scheme which will support those vulnerable residents who may not qualify for the £150 rebate.

Residents are encouraged to check the council website for more information.

Rochdale

Nearly a third of all households in Rochdale – around 30,000 – will have to apply for the £150 council tax rebate as they do not pay by direct debit.

Rochdale council says people who do not pay by direct debit will still be eligible for the £150 payment and it is currently discussing the best way to do this.

Councillor Carol Wardle, cabinet member for finance at Rochdale council, said: “Direct Debit is the quickest, safest and easiest way to pay your council tax and our borough is already one of the highest in Greater Manchester in terms of the number of direct debit council tax payers.

“We still continually promote the benefits of it to residents online, in direct mail and by phone when residents call us to report account changes.

“Customers who don’t currently pay by direct debit will of course still get the £150 rebate if eligible, and we are discussing various options to get this money to them.

Tameside

There are approximately 38,000 households in Tameside which do use direct debit to pay their council tax bills despite the town hall encouraging them to.

The council has undertaken a targeted direct debit campaign to encourage anyone not currently paying by direct debit to consider doing so as this is the quickest way to receive the energy rebate, according to the local authority.

The town hall has directly written to all residents who pay by cash, credit or debit card and issued broader communications including via social media.

Households which have not yet signed up to pay council tax by direct debit will not miss out on the rebate, however in accordance with government guidance they will have to provide bank details to enable the payment to be made.

An application form will be available in April.

The costs of administration are not yet known.

What the government has said

The government is funding the council tax rebate, but local authority will determine how to run their claims process depending on local circumstances.

There is no set deadline for setting up a direct debit in order to get the £150 automatically. This depends on how councils run the payment process locally.

A Department for Levelling Up, Housing and Communities spokesperson said: “Direct debit is the quickest and easiest way to pay council tax, and the best way for most people to get the rebate.

“Eligible households who don’t pay their council tax by direct debit will be invited to make a claim.

“Councils will be reimbursed for their administration costs.”

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