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Energy payment scheme excludes 838,000 low-income households claiming Council Tax Support
A new analysis says 838,000 low-income households claiming Council Tax Support will miss out on the Government’s £100 energy payment, which is tied to council tax bands A to D. The finding has raised concerns that the help may not reach many households most affected by energy costs, as bills are expected to rise again in January.
The Government has allocated £2.6 billion for payments to up to 20 million households. Its estimates say the scheme will reach 88 per cent of households in the bottom three income deciles and 83 per cent of fuel-stressed households. Policy in Practice said larger low-income families are more likely to live in higher-band homes, while some eligible households may not receive payments automatically; the Budget also included changes to standing charges and £100 million for councils to provide discretionary support.
In short
- 838,000 low-income households claiming Council Tax Support may miss the £100 payment.
- Eligibility is based on council tax bands A to D.
- Analysts say the system may overlook larger families and other vulnerable households.
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The case for
Tying payments to council tax bands may offer a relatively simple way to deliver support quickly to a large number of households, while the Government estimates that most households on the lowest incomes and most fuel-stressed households will benefit. The £2.6 billion scheme, alongside discretionary council support, could provide broad help without requiring a more complex assessment of every household’s circumstances.
The case against
Council tax bands are an imperfect guide to present-day need, so excluding 838,000 Council Tax Support claimants risks missing people on low incomes who face high energy costs. Larger low-income families may be especially likely to live in higher-band homes, and payment gaps for some eligible households could further weaken the scheme’s reach as bills rise.
Explained simply
Council Tax Support is a means-tested reduction in council tax bills for people on low incomes. Council tax bands are based mainly on a home’s assessed value, and the proposed energy payment is linked to homes in bands A to D.
The Government has set aside money for payments to households, aiming to help people on lower incomes and those struggling with fuel costs. Policy in Practice is an organisation that analyses public policy and household finances; its findings have drawn attention to how eligibility rules may affect different households.
The issue matters because household size, income and the council tax band of a home do not always align. Local councils can also provide discretionary help, so support may depend on both the national scheme’s rules and local decisions.
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Originally published by Daily Mail as “Labour’s ‘£100 energy bailout for the North’ will ‘miss out 830,000 of the poorest households’”.