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Half a million households will not automatically receive council tax rebate

Nearly half a million households across Greater Manchester will not automatically receive the £150 council tax rebate they are due in April.

The payment was promised by Chancellor Rishi Sunak last month in response to rising energy bills which are set to sky-rocket when the price cap increases.

All properties in council tax bands A to D are entitled to the £150 payment – but only those paying council tax by direct debit will receive it automatically.

But more than 460,000 households across Greater Manchester currently pay council tax manually meaning they will have to apply to receive the rebate.

These residents either pay their bills by visiting their council’s website every month, make their payments by phone or visit their town hall to pay in person.

Some have suggested that the government did not account for these residents in the rollout of the rebate which was announced last month.

Councils are now undertaking the ‘major exercise’ of writing to all households which do not pay bills by direct debit, advising them how to claim the £150.

A flyer from the Department for Levelling Up, Housing and Communities with information about the rebate is to be sent out with all annual council tax bills.

Authorities are encouraging residents to set up a direct debit so they receive the rebate as quickly as possible – but alternative plans are being put in place.

The government has confirmed it will cover these administration costs.

The Local Democracy Reporting Service asked all 10 local authorities in Greater Manchester what they are doing to help residents claim the rebate.

Bolton

There are more than 30,000 households in Bolton that are eligible for the £150 council tax rebate in which the bill payer does not use a direct debit.

Speaking at a council scrutiny meeting last month, borough treasurer Sue Johnson told councillors that the local authority would use council-held data on band A to D properties to distribute the payment to eligible households.

However, the town hall does not have the bank account details of at least 30,000 households who do not pay their council tax by direct debit.

She said: “For those residents where we have bank details it will be very straightforward as we can put the money straight into their accounts.

“For the others we will need to devise a scheme that is simple to use and say how people will contact us.

“Some may be happy to share bank account details, some may not.

“We need to then devise a process which is fraud proof, which is easy to use and which will give us a security, to get the money out to residents.”

Bury

Approximately 73,000 households in Bury will qualify for the payment – but around 21,000 of them do not currently pay their council tax by direct debit.

An online form is available on Bury council’s website for these people to provide their details so payments can be made into their bank accounts.

The town hall is also looking at ways of paying those without bank accounts.

This information will be included in council tax bills alongside a letter from the Chancellor Rishi Sunak, costing the council an additional £1,600 for printing.

The council would incur postage and printing cost for any further mailshots.

Manchester

Of the 242,584 properties in Manchester, only 119,678 pay council tax by direct debit which means less than half will receive the rebate automatically.

A ‘third party solution’ costing thousands for people who do not pay by direct debit to provide bank details is being procured for the purposes of the rebate.

A Manchester council spokesperson said: “There is a large number of people who have chosen not to pay their council tax by direct debit.

“All residents who pay their council tax by other means and are entitled to the grant will be written to, informed of their eligibility and advised how to claim through an online form.

“The quickest and easiest way to claim the rebate is by setting up a direct debit to pay council tax.

“However, there will be a system in place for those people who cannot claim online to phone the council and be supported through an assisted application process.

“This is a major exercise for the council but we are confident that everyone who wants to claim the £150 will be able to.”

Oldham

Around 36 pc of households in Oldham do not pay council tax by direct debit.

This figure includes households which have no balance to pay due to discounts or exemption, but who will be entitled to the £150 council tax energy rebate.

The local authority will issue leaflets about the rebate – encouraging people to set up a direct debit – with all council tax bills, costing approximately £7,500.

But residents will not miss out on the rebate if they do not set up a direct debit.

The council will shortly publicise its plans to make payments to those not in receipt of direct debit and details about the discretionary scheme which will support those vulnerable residents who may not qualify for the £150 rebate.

Residents are encouraged to check the council website for more information.

Rochdale

Nearly a third of all households in Rochdale – around 30,000 – will have to apply for the £150 council tax rebate as they do not pay by direct debit.

Rochdale council says people who do not pay by direct debit will still be eligible for the £150 payment and it is currently discussing the best way to do this.

Councillor Carol Wardle, cabinet member for finance at Rochdale council, said: “Direct Debit is the quickest, safest and easiest way to pay your council tax and our borough is already one of the highest in Greater Manchester in terms of the number of direct debit council tax payers.

“We still continually promote the benefits of it to residents online, in direct mail and by phone when residents call us to report account changes.

“Customers who don’t currently pay by direct debit will of course still get the £150 rebate if eligible, and we are discussing various options to get this money to them.”

Salford

In total, 50,500 of the 126,500 households in Salford do not currently pay council tax by direct debit – around 40 pc of all households with a bill to pay.

There are 116,066 households in council tax bands A to D which are eligible for the rebate of which 64,380 pay by direct debit, according to Salford council.

A further 6,106 households in bands E to H can apply for a discretionary fund of which 290 already receive council tax reductions and will be prioritised.

The council said paying the rebate to households which do not currently have a direct debit set up will create ‘logistical and operational challenges’, but promised to ‘proactively identify these households’ and develop quick and easy systems to get payments out to them as effectively as possible.

Salford mayor Paul Dennett said: “The £150 is welcome support, but we do not think this is in any way near enough financial support, given the huge cost-of-living increases residents are facing in the UK, which will be further exacerbated when the energy price cap is lifted in April.”

Stockport

Nearly a third of all households in Stockport – 38,712 in total – will have to apply to claim the £150 council tax rebate because they do not pay by direct debit.

Councillors also voted through an additional £15 ‘cost of living rebate’ for all households in council tax bands A to D at a recent budget-setting meeting.

The local authority says it is ‘implementing a robust communications strategy’ to target these households, and considering options for those who do not pay their council tax via direct debit to receive the government’s energy rebate.

Bosses say they do not plan to send out any direct mailshots, but leaflets and targeted advertising will be used to reach those residents likely to be affected.

Deputy councillor leader Tom McGee said: “We recognise how important it is that those who do not pay their council tax by direct debit make the switch in order to make the payment of the government’s £150 energy rebate as easy as possible.

“In Stockport, this is a complex and large-scale issue.

“We are currently implementing a robust communications plan to help those families understand the importance of making the switch, and ensure that doing so is as quick and easy as possible.”

He added: “For those who do not pay by direct debit, provision will be made to ensure they are still able to claim the rebate.

“As a council, we are reviewing the most recent government guidance on this, and our processes for claiming the rebate will be set out on the council website in due course.”

Tameside

There are approximately 38,000 households in Tameside which do use direct debit to pay their council tax bills despite the town hall encouraging them to.

The council has undertaken a targeted direct debit campaign to encourage anyone not currently paying by direct debit to consider doing so as this is the quickest way to receive the energy rebate, according to the local authority.

The town hall has directly written to all residents who pay by cash, credit or debit card and issued broader communications including via social media.

Households which have not yet signed up to pay council tax by direct debit will not miss out on the rebate, however in accordance with government guidance they will have to provide bank details to enable the payment to be made.

An application form will be available in April.

The costs of administration are not yet known.

Trafford

There are currently 25,431 households in Trafford which do not pay council tax by direct debit – but the town hall is encouraging residents to set one up soon.

Trafford council says paying by direct debit is a simple and convenient way to pay council tax and the online form takes just a few minutes to complete.

A spokesperson said: “We are aware that people eligible for the £150 energy rebate will get that rebate quicker if they pay their council tax by Direct Debit.

“This is because we can make sure the rebate goes directly into the bank account.

“Eligible households who don’t currently pay by the Direct Debit scheme will still receive the rebate and we are currently working out the process of how to apply that rebate.

“Once that process has been determined, we will communicate this to the people concerned.”

Wigan

There are 79,000 households in Wigan paying council tax by direct debit.

At present, there are around 149,700 properties in the borough, but not all will be eligible for the rebate as this includes second homes and empty properties.

In total, there are 70,700 not currently paying council tax by direct debit.

Wigan council is working through the guidance from the government to ensure an adequate process is put in place to distribute payments to all eligible residents, regardless of their method of payment for council tax.

What the government has said

The government is funding the council tax rebate, but local authority will determine how to run their claims process depending on local circumstances.

There is no set deadline for setting up a direct debit in order to get the £150 automatically. This depends on how councils run the payment process locally.

A Department for Levelling Up, Housing and Communities spokesperson 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.”

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