Scammers target households with fake £150 council tax energy rebate calls

The Local Government Association (LGA) has warned that a recent spate of cold calls offering energy rebates are scams, according to Which?¹. The scammers claim to be associated with the council and say a refund is due, then ask for bank details in order to pay out the government's £150 energy rebate¹. According to people who have fallen for the scam, handing over those details led to large sums of money being deducted from their bank accounts shortly after the phone call¹.

The rebate itself is genuine. All households in council tax bands A to D are eligible for the £150 payment, which is not means tested and does not need to be repaid¹. Households that pay council tax by direct debit receive the rebate directly into their bank account, while those who do not pay by direct debit are sent a letter with details of how to claim it¹. Councils are administering the rebates, but the LGA has said councils do not ask for bank details over the phone¹.

Cold calls appear to be the primary method used, but variations of the scam have also been sent by email and text message¹. The report does not give figures for how many households have been targeted or how much money has been lost, and no total has been reported¹.

Why it matters for households

The £150 rebate is due to every household in council tax bands A to D, so the scam reaches people who are expecting a real payment and may be waiting for contact about it¹. The risk is concentrated among households that do not pay council tax by direct debit, because they are due a letter explaining how to claim rather than an automatic payment, which leaves room for a fraudulent call, text or email to arrive first¹. Where bank details have been handed over, the reported consequence is money leaving the account soon afterwards¹. The LGA's position is that councils do not request bank details by phone, so any call asking for them is not the route by which the rebate is paid¹.

What happens next

Households that have given details to a suspected scammer should contact their bank immediately, and report the scam to Action Fraud, or the police in Scotland¹. Anyone who does not pay council tax by direct debit should wait for the letter from their council explaining how to claim the rebate¹. For general guidance, see stopping nuisance calls and scam mail and phishing, vishing and smishing, or the scams and fraud hub.