Thousands are NOT eligible for £150 tax credit – here’s what to do

THOUSANDS of households are queuing up for £150 extra help with their council tax.

The helping hand is distributed to those who live in homes in municipal tax classes A to D.

Here's what to do if you don't qualify for the £150 tax credit


Here’s what to do if you don’t qualify for the £150 tax creditCredit: Rex

About 80% of UK households were eligible for a £150 tax credit to help with the rising cost of living.

The money is automatically deposited into the bank accounts of those struggling for income – and they don’t have to pay it back.

Municipalities in the United Kingdom have until September 30 to distribute the money to eligible households.

But those in higher bands have missed the help – despite many people still struggling with the rising bills.

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If you are not one of the 80% eligible for the £150 tax credit, there is other assistance on offer.

There is a free fund for those who live in homes between the E to H brackets of the municipality.

It is worth £144 million and is being relisted through local authorities.

How the scheme works, including eligibility and how to apply, depends on where you live.

If you think you qualify, it’s worth contacting your local council for more information.

You can use the government localization tool if you are not sure which authority you fall under.

The Treasury has previously said the fund will be available to support vulnerable and lower-income people who do not pay council taxes, as well as people living in E – H homes.

In Camden, for example, you can get between £50 and £150 if you don’t qualify for the main scheme but struggle with utility bills.

This also applies if you are in bands EH for city tax and receive a discount on city tax through separate schemes, or if you live with several people and can demonstrate that you are responsible for the energy bill.

You can now apply and see if you qualify if Camden is your municipality.

Meanwhile, Wyre Forest council residents in EH bonds and receiving council tax aid will also receive up to £150.

Some residents in all bands of AH get an extra “top up” payment of £35 if they get the maximum discount on their council tax bill.

In these circumstances, payments are made automatically

Can I get my municipal taxes reduced or for free?

Some households are eligible for more help with their council tax and may not have to pay anything at all:

Single people

There are other cases in which you may be entitled to a reduction in your municipal tax assessment.

For example, if you live alone, you are entitled to a 25% discount on your municipal tax assessment.

A full list of circumstances that exempt you from paying council tax can be found on the Citizens Advice website.


Retirees may also qualify for a reduction in municipal taxes.

If you receive the Guarantee Credit section of Pension Credit, you may even qualify for a 100% discount.

If not, you can still get help if you’re on a low income and less than £16,000 in savings.

A pensioner living alone also receives a 25% discount.

Low-income households

If you have a low income or receive a benefit, you may be eligible for a reduction in municipal taxes.

The requirements for getting help depend on where you live.

You can also get a deferment if you’re having trouble paying your bill, or you can talk to your municipality about setting up a payment plan to manage costs.

But one thing to remember is that if you are having a hard time, you should contact your municipality as early as possible.

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The municipal tax is a priority account and if you are in arrears you may be asked to pay the balance for the entire year in one go.

And failure to pay can lead to bailiffs, legal action, or even jail time.

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