Wales announces £150 council tax rebates

Welsh finance minister Rebecca Evans announced on 15 February 2022 that £150 council tax rebates would be issued in Wales, following similar measures set out for England and Scotland¹. The Welsh government said the rebates would be paid "as soon as possible" to households in council tax bands A to D and to those in the council tax reduction scheme¹.

The announcement came after Chancellor Rishi Sunak's statement on 3 February 2022, in which he said the help aims to "take the sting" out of price rises and spread the extra energy costs over time¹. On 10 February, SNP finance secretary Kate Forbes announced that 73% of Scottish households would receive a £150 council tax rebate in April 2022, going to those in all council tax bands currently part of the council tax reduction scheme, plus those in bands A to D in Scotland¹. In England, all households in properties in council tax bands A to D will receive a £150 rebate which does not need to be repaid, and the rebate is not means-tested¹. Local authorities are expected to credit people's accounts with £150 in April, using saved bank account details for those paying by direct debit¹.

The Welsh government said it would be issuing £150 council tax rebates "as soon as possible" to Welsh households in council tax bands A to D, and to those in the council tax reduction scheme¹.

Because council tax systems in Scotland, Wales and Northern Ireland work differently from England's, these devolved nations are expected to receive £565m of Barnett funding as a result of the council tax rebates being granted in England¹. Northern Ireland will be funded with around £150m comparable funding through the Barnett formula next year, as energy policy is devolved¹.

Separately, all domestic electricity customers will receive a £200 credit on their energy bill in October 2022¹. The government will initially meet the cost, but the money must be repaid through energy bills in £40 instalments over five years, beginning in 2023¹. Local authorities will also be given a £144m discretionary fund to help those on low incomes and vulnerable residents, particularly those who do not pay council tax and so cannot receive the rebate, or who pay council tax on properties in bands E to H; how much help is given and who is eligible will vary between local authorities¹.

The Chancellor also confirmed plans to expand eligibility for the Warm Home Discount, with an expected 3m households able to benefit, and a £10 uplift to £150 from October¹. Currently the discount is only paid to those who receive the "guarantee credit" element of pension credit, or those on a low income or receiving certain means-tested benefits, and each energy supplier has its own criteria¹. The government says more detail on which households will qualify will be published after a consultation¹.

Why it matters for households

Households in Wales in council tax bands A to D, and those in the council tax reduction scheme, are in line for a £150 rebate that does not need to be repaid, with the Welsh government saying it will be issued as soon as possible¹. The timing differs from England, where local authorities are expected to credit accounts in April¹. The rebate is not means-tested in England, as the Chancellor noted price rises are affecting those on middle incomes as well as lower incomes¹.

The £200 energy credit is a loan rather than a grant: it is repaid in £40 instalments over five years from 2023¹. Households that do not pay council tax, or that live in properties in bands E to H, fall outside the rebate and may instead be covered by the £144m discretionary fund, whose amounts and eligibility vary by local authority¹.

What happens next

The Welsh rebates are to be issued "as soon as possible", with no date given¹. English local authorities are expected to credit accounts in April 2022¹. The £200 energy credit is due in October 2022, with repayment starting in 2023¹. More detail on Warm Home Discount eligibility is to be published after a consultation¹.