CIPFA CEO Rob Whiteman has described the government’s plans to use council tax rebates to help many people facing soaring energy costs as a “poorly targeted approach”.
The government announced on 3 February that it would provide the £150 rebate in April to homes in council tax bands A to D, which it said would cover 80% of households. This would be combined with a £200 discount for all domestic electricity customers, which will have to be repaid at a later date.
Whiteman said the use of council tax bands would lead to problems of equity and in using outdated property valuations. “CIPFA looks forward to seeing the details of the planned £150m to be allocated to local authorities through the discretionary fund announced by the chancellor today,” he added.
“Discussions have not yet taken place with local government, for whom this announcement will have come out of the blue. Additional funding needs to be made available to implement these policy changes within the tight timescale proposed.”
Whiteman pointed out that annual council tax bills in the Northeast and Southwest were over £2,000, with rises of 3% expected for 2022/23. As a result, the rebates “will not go very far in providing relief for those most in need”.
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