£150 council tax rebates confirmed for most Scots households

Scottish Finance Secretary Kate Forbes has confirmed a £290 million package of support for people affected by the soaring cost of living, including £150 council tax rebates for eligible households.

All households in bands A to D will receive a £150 payment or discount from their council tax bill, as will those in other bands who already qualify for reduced rates.

Ms Forbes said it means 73% of Scottish households – about 1.85 million people – would receive the money.

But she admitted it is an “imperfect scheme” and does not go far enough to support Scots hit by rising energy bills.

“In terms of the challenges that we face right now, I think the measures that we have outlined will only go so far,” she said.

Opening the stage three debate of the Scottish Budget, Ms Forbes estimated that the energy price cap rise of almost £700 “could move a further 211,000 households into fuel poverty, and around 235,000 households who were already fuel poor into extreme fuel poverty”.

Announcing the financial support measures, she said: “Firstly, we will provide £150 to every household in receipt of council tax reduction in all council tax bands.

“The council tax reduction scheme already identifies households in greatest need and will allow us to target this intervention.

“Secondly, I will provide local authorities with funding to pass on £150 to other occupied households in bands A to D in Scotland.”

The money will either be given as a direct payment by local authorities or used as credit towards council tax bills, Ms Forbes said.

The Finance Secretary also announced an additional £10 million for the Fuel Insecurity Fund “to help households at risk of self-disconnection, or self-rationing their energy use, due to unaffordable fuel costs”.

Explaining her decision, Ms Forbes 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.”

Councils will be allowed to carry forward any underspends in the Discretionary Housing Payment and the Scottish Welfare Fund into the next financial year, Ms Forbes said.

For businesses, Ms Forbes said there will be an additional £16 million for cultural events that have faced cancellations, £7.5 million for Scottish tour operators, £3.5 million for outbound travel agents, and £3 million towards city centre recovery to improve footfall.

One-off grants worth a total of £6.5 million will be made available for the childcare sector, including childminders.

She said: “A fully functioning childcare sector is a pivotal part of our national economic infrastructure.”