Government makes £150 council tax rebate direct debit plea

A £150 council tax rebate outlined by the government will only be given automatically to those who pay by direct debits, councils have warned.

Some 323,000 households between County Durham and Northumberland may have to apply separately for the rebate.

The rebate for Band A to D homes was announced by Chancellor Rishi Sunak to help people cope with escalating cost of living prices.

The government is urging people to set up direct debits.

According to council figures sourced by the Local Democracy Reporting Service, there are 84,000 homes in County Durham that do not pay via direct debit, almost 57,000 in Newcastle, 45,000 in Sunderland, 40,000 in Northumberland, 36,000 in Gateshead, 31,000 in North Tyneside and and 30,000 in South Tyneside.

A Department for Levelling Up, Housing and Communities spokesman 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."

The spokesman said all rebates should be paid "as soon as possible" from the beginning of April.

North East councils indicated they would be encouraging residents to sign up for direct debits if they are able to, but several said they were still awaiting government guidance on how other people will be able to access the rebate.

Sunderland City Council's cabinet secretary Paul Stewart, warned that those who need the money most would find it hardest to claim the £150.

He said: "It's unfortunate and regrettable that once again the government has introduced a policy that will directly hit struggling families without bank accounts or those that pay through other means such as cash and making it more difficult for those in most need to claim this rebate."

Joanne Bell, lead member for resources and innovation at South Tyneside Council, added: "We are still awaiting clarity from government on the other options that may be available to those who do not sign up to direct debit and will ensure that our communications channels are updated as soon as we have that information.

"However, it is anticipated that there is likely to be an application process required for these customers."

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