MSE News

Scottish households in council tax bands A to D to be given £150 to battle cost of living crisis

Scottish households in council tax bands A to D to be given £150 to battle cost of living crisis

Close to two million households in Scotland will be given £150 to help cushion against the cost of living crisis. The money will be given to those in council tax bands A to D and those eligible for council tax reductions.

Finance secretary for the Scottish Government, Kate Forbes, said an additional pot of £10 million will also be made available to those struggling to pay their fuel bills. The money will be paid into a ‘Fuel Insecurity Fund’.

The announcement means 1.85 million Scots, or 73% of Scottish households, will be eligible for the support. 

The payment comes as the energy price cap is set to soar by a massive £693 a year from 1 April. Earlier this month (3 February), the Chancellor Rishi Sunak announced that 20 million households in England, those also in council tax bands A to D, will get a £150 rebate in April.

For more information on council tax bands and what they mean for you, see our guide here

Here’s what we know so far about the Scottish payment:

  • The support will apply to those in council tax bands A to D, plus those eligible for council tax reductions. 1.85 million households will receive the support.
  • Local authorities will have the option to provide the support as a direct cash payment or as credit to council tax accounts. 
  • Households will be paid automatically - you do not need to apply.
  • The Scottish Government hasn’t provided a specific date for when the money will be distributed but said households will receive payments in April.

What does the Scottish Government say?

The finance secretary said: “This is clearly an imperfect scheme. It will reach some households who may not need this, but it is the only route we have to make sure we reach those for whom it will make a difference, quickly and simply.

“I know that the cost of living crisis is affecting households who are not in receipt of benefits, who are not claiming a council tax reduction. And they are facing hardship too. We must seek to do what we can to prevent those households and families on the edge of the poverty line, from falling over it.”

 

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