Sunak press announcement tonight

The current Band A rate for my area is £1231.78. A single occupant receives a 25% discount, so pays 75% = £923.83 The minimum rate for people receiving Local council tax support is 12.5%. The figures for different authorities vary. 12.5% of £923.83 = £115.47, which is less than £150.

GrannyGravy13

growstuff

rosie1959

GrannyGravy13

All homes in council tax bands A-D to get a non-repayable one of credit of £150 on 01/04/22

£200 towards energy costs on 01/10/22 (I think this is for lower income homes, sorry I didn’t catch all of the detail)

From what I have read the £200 will be for all households on their fuel bills but repayable over the next 5 years at £40 per annum

So £1 a week? That's not going to help anybody.

£200 works out to £3.80 a week, not sure where you got £1.00 per week from?

rosie1959 just wrote that the £200 is over five years and works out at £40 a year. I must admit I was a bit puzzled.

It says "repayable over 5 years at £40 per annum" so that's the repayment that will be less than £1 per week.

I think that we are supposed to be getting a loan of £200 in September - whether we want it or not - ( will there be interest attached?)

This is to be paid back over 5 years in sums of £40. So £40 added to what will already be a huge bill and probably unplayable by the very poorest.

It is nonsense economics.

Ah! Now I get it.

In an attempt to mitigate Britain’s cost of living crisis, Sunak said all households would receive £200 off their energy bills in October – but then pay the discount back by £40 a year for the subsequent five years. (Guardian)

But what if energy prices continue to rise? Will we all get a £200 repayable loan every year?

Whitewavemark2

I think that we are supposed to be getting a loan of £200 in September - whether we want it or not - ( will there be interest attached?)

This is to be paid back over 5 years in sums of £40. So £40 added to what will already be a huge bill and probably unplayable by the very poorest.

It is nonsense economics.

Yes, it is nonsense economics. If there's a "loan" every year, after five years, people will end up paying back the forced loan of £40pa (£200 after five years) in perpetuity.

That is the huge risk. There is no sign that gas prices are going to drop or remain steady as the world tries to reduce its coal consumption.

We need renewables

I wonder if I could refuse it?

I suppose I could return it to my energy supplier - Shell - who has just made squillions profit - but that means it would just sit in their vast coffers for 5 years.

My energy supplier makes £900 profit per second according to the independent.

Whitewavemark2

I wonder if I could refuse it?

I suppose I could return it to my energy supplier - Shell - who has just made squillions profit - but that means it would just sit in their vast coffers for 5 years.

Interest rates will inevitably rise over the next year. Stick it in a savings account, if you don't need it.

Oh and for those who do not know there will be many thousands if not millions who do not pay a penny in council tax because they are on such a low income. My mum was one of them.

People like her will suffer dreadfully. The older you get, the colder you get and need a higher temperature to survive.

Goodness knows what those poor souls are going to do.

Die I suppose

growstuff

Whitewavemark2

I wonder if I could refuse it?

I suppose I could return it to my energy supplier - Shell - who has just made squillions profit - but that means it would just sit in their vast coffers for 5 years.

Interest rates will inevitably rise over the next year. Stick it in a savings account, if you don't need it.

Doesn’t help my annoyance though!

… latest Monetary Policy Report predicted post-tax incomes would fall 2% this year, after taking into account the rising cost of living.

the biggest fall in take-home pay since records began in 1990

Whitewavemark2

Oh and for those who do not know there will be many thousands if not millions who do not pay a penny in council tax because they are on such a low income. My mum was one of them.

People like her will suffer dreadfully. The older you get, the colder you get and need a higher temperature to survive.

Goodness knows what those poor souls are going to do.

Die I suppose

According to Martin Lewis there was a a discretionary fund for people who may not be covered by the £150 on council tax and on lower incomes. A £140 million fund via local councils.

There are also proposed changes to the Warn Home Discount.

*Warn obviously should be Warm

*there was should be there is

GrannyGravy13

Whitewavemark2

Oh and for those who do not know there will be many thousands if not millions who do not pay a penny in council tax because they are on such a low income. My mum was one of them.

People like her will suffer dreadfully. The older you get, the colder you get and need a higher temperature to survive.

Goodness knows what those poor souls are going to do.

Die I suppose

According to Martin Lewis there was a a discretionary fund for people who may not be covered by the £150 on council tax and on lower incomes. A £140 million fund via local councils.

There are also proposed changes to the Warn Home Discount.

Hmmm ... I don't know how many people pay no or very low council tax, but I wouldn't mind betting it's more than a million.

£140 million divided by a million = £140. Is this £140m new money or recycling of old money which is already given in discretionary funds to councils?

GrannyGravy13

Whitewavemark2

Oh and for those who do not know there will be many thousands if not millions who do not pay a penny in council tax because they are on such a low income. My mum was one of them.

People like her will suffer dreadfully. The older you get, the colder you get and need a higher temperature to survive.

Goodness knows what those poor souls are going to do.

Die I suppose

According to Martin Lewis there was a a discretionary fund for people who may not be covered by the £150 on council tax and on lower incomes. A £140 million fund via local councils.

There are also proposed changes to the Warn Home Discount.

About flipping time! The Warm Home Discount varies between energy suppliers. There's a "core" group, but eligibility criteria are harsh. Not only that, but the energy suppliers have a capped fund and if their money has run out by the time you apply, it's just tough luck.

Really the best thing to do with the rebate is to use it to repay the rebate.

I always worry when government push the problem onto councils. It nearly always means cuts elsewhere.

growstuff

The current Band A rate for my area is £1231.78. A single occupant receives a 25% discount, so pays 75% = £923.83 The minimum rate for people receiving Local council tax support is 12.5%. The figures for different authorities vary. 12.5% of £923.83 = £115.47, which is less than £150.

Thank you for the information Growstuff I did not realise discount on rates could be that much. Apparently local councils are to be given a fund to help those who pay little or no council tax

Last night Sunak gave the bankers a £1bn a year tax cut.

Monbiot

rosie1959

growstuff

The current Band A rate for my area is £1231.78. A single occupant receives a 25% discount, so pays 75% = £923.83 The minimum rate for people receiving Local council tax support is 12.5%. The figures for different authorities vary. 12.5% of £923.83 = £115.47, which is less than £150.

Thank you for the information Growstuff I did not realise discount on rates could be that much. Apparently local councils are to be given a fund to help those who pay little or no council tax

There's a difference between a council tax discount and Local Council Tax Support, which is means tested. Pensioners receiving guaranteed Pension Credit almost certainly receive some degree of support.

Apparently, over 2.5 million people receive some support with council tax, so £140 million won't go very far. In any case, the amount councils received to support people on low incomes was reduced by 50% between 2013 and 2020.

Why are councils having to deal with this?

I'm wondering why the energy price-cap can't be kept in place for longer.

Twenty eight energy companies went bust in 2021 - surely that's a sign that there are far too many of them. Let a few more go bust. After all most are just distributors and not actually involved in exploration, infrastructure, etc.

Does anyone know if the rates rebate will apply in Scotland?

Riverwalk

Why are councils having to deal with this?

I'm wondering why the energy price-cap can't be kept in place for longer.

Twenty eight energy companies went bust in 2021 - surely that's a sign that there are far too many of them. Let a few more go bust. After all most are just distributors and not actually involved in exploration, infrastructure, etc.

I guess the argument is that these schemes target the poorest and most vulnerable. However, they won't compensate for the rise in NICs and cost of living (especially basic foodstuffs) increases, which are hitting the poorest most.

Whitewavemark2

I wonder if I could refuse it?

I suppose I could return it to my energy supplier - Shell - who has just made squillions profit - but that means it would just sit in their vast coffers for 5 years.

Apparently, the standing charge will be increased to cover the loans, so you might as well accept it because you'll end up paying it back anyway.