Households urged to get ready for £150 council tax rebate by setting up direct debit payments with their local council

Households who don't pay their council tax by direct debit will have to make a claim for their £150 April rebate, says the government.

A £150 cash payment is to be given to millions of households in April - but only those who make their council tax payments by direct debit will see the cash automatically paid to them and directly into their bank account.

While those who pay by other means, say ministers, will need to wait to be contacted by their local council where they will be invited to make a claim for their £150 payment, which will never have to be repaid.

But tax payers who wish to set up a direct debit for their council tax payments - in order to get their £150 quickly and seamlessly in a few weeks time - are being told that it's not too late to set up the monthly payment system with their local authority.

And anyone wishing to do so is being encouraged to contact their council office as soon as possible in order to arrange their future direct debits.

Around 20 million households in council tax bands A to D - including 95% of rented properties - are set to be entitled to the £150 cash injection designed to help families manage cost of living pressures.

An extra £144 million is also being given to councils, say ministers, to provide discretionary support to vulnerable households who may not qualify for the £150 council tax rebate. This includes people on low incomes in council tax bands E to H.

Secretary of State for Levelling Up Michael Gove said: "As we emerge from the pandemic, we understand the pressures facing many families as global inflation levels increase. The support we have introduced will help millions of people, particularly those on the lowest incomes and the most vulnerable.

"We continue to stand behind the British people and I urge everyone who is eligible to claim this rebate to do so."

Where a council does not hold live direct debit instructions for an eligible household, says the government, 'every effort' must be made to contact them to help them claim the £150 they are entitled to.

There should be options for residents who are 'digitally excluded' says the guidance, and local councils can also decide if they wish to offer the £150 as a credit on a household's council tax account as an alternative payment option.

Councils will also be required to carry out 'pre-payment checks' before paying any individual £150 grant that is not being given to a live direct debit holder for which they already have the payee's details.