Council tax rebate: Warning issued over new scam pretending to offer £150

Scammers are cold-calling people asking for their bank details to receive the government's £150 energy rebate, councils have warned.

Chancellor Rishi Sunak announced the rebate for homes in council tax bands A to D in February to help people cope with escalating cost of living prices.

The Local Government Association (LGA) urged people to be alert to the scam and not give out personal information.

It emphasised that councils would never request bank details over the phone.

Anyone who unexpectedly received a text, email or phone call seeking information or payment should not give out personal information, including bank details, click any links or respond until they could be sure it was genuine, the LGA said.

Eligible households in England that pay council tax by direct debit should receive the payment directly into their bank account.

The government has urged people to set up direct debits and the LGA said those who did not pay their council tax by direct debit would be sent a letter with details of how to claim.

During the Covid pandemic, there was a sharp increase in scams, including promises of a payment from HM Revenue and Customs to support individuals during lockdown or offers to book a vaccination for a fee.

Mohan Iyengar, vice-chairman of the LGA's Safer and Stronger Communities Board, said councils were working to ensure residents received their energy rebate payments as soon as possible.

He added: "However, criminals are becoming increasingly sophisticated in their attempts to take advantage of the financial worries people are facing and as a result many of these scams look legitimate on first impression."

Fraudulent text messages can be reported by forwarding them to 7726, a free reporting service provided by phone operators. Potential scams can also be reported to Action Fraud.