Three-fifths of households in Sandwell receive energy rebate payment

Sandwell Council had received £20 million from the department of levelling up, housing, and communities (DLUHC) to cover the cost of the energy rebate payments. They have also received £161,000 to cover administration costs.

Cabinet documents show the borough has 126,620 households eligible for the energy rebate payment in council tax bands A to D. For Bands E to H the borough had 3,357 households eligible. Sandwell council lists 32,600 households in receipt of council tax reduction.

By July this year, the council had approved 97,012 energy rebate claims worth £14.5 million, out of 76% of households eligible. Of these claims, approximately 69,000 households used direct debit. Sandwell council said they were awaiting responses from 2,153 claims.

But the cabinet report also noted 4,640 households had requested to pay £150 into their council tax account. Sandwell council claimed they were “testing software” to approve this payment to be actioned.

The council said they have issued three batches of letters between June and July this year to 28,500 households in bands A to D to apply for the energy rebate. “If no response is received by the end of July 2022, we will credit their council tax account with the £150 and issue a revised bill/instalments. If this payment puts the council tax account into credit, we will issue refunds,” they added.

Councils up and down the country have until September 30 to issue the council tax energy bills rebates. Another scheme, the Energy Support Scheme, is paid by electricity companies and will give households £400 directly off their energy bills from October.

Experts have warned energy bills in Great Britain could reach more than £3,600 a year this winter, with wholesale prices expected to push up household costs until at least 2024. The research firm Cornwall Insight predicts the energy price cap may rise to £3,615 a year from January, an increase on its previous estimate of £3,363.

Meanwhile, BP has tripled its profits to nearly £7 billion in the second quarter of the year amid high oil prices during Russia’s invasion of Ukraine. It comes as consumers are increasingly struggling with the cost of living crisis, with inflation running at a 40-year high.

Councillor Bob Piper, deputy leader and cabinet member for finance and resources at Sandwell council, said: “We have been working hard to ensure eligible households receive the £150 energy rebate as quickly as possible, and were one of the first councils to start making payments in April to those who pay council tax by direct debit.

“In May we opened an application form for those who do not pay council tax by direct debit. We have since made payments to over 20,000 households who have submitted applications. As of 8 July, we had requested additional information from 2,153 applicants in order to process their claims, and 4,640 requested that the £150 be credited to their council tax account, rather than making a direct payment.

“Last month, we wrote directly to households in council tax bands A to D who had yet to apply for the energy rebate payment. If no response is received, we will credit their council tax accounts with the £150. As of July 31, 28,293 of these had received payment which – together with 69,287 direct payments for direct debit payers – means 97,580 Sandwell households in bands A to D have had an energy rebate payment since the scheme started in April.

“We are also going beyond the government’s scheme to make discretionary payments of £150 to all households in council tax bands E-H. Payments have been made to those in bands E-H who pay by direct debit and we have written to households who do not, so they can apply for the rebate. As of 31 July, 2,386 of these had received payment.

“We would encourage all eligible households within property bands E-H who haven’t yet applied to do so via this form and more information can be found on our website about the support available for the cost of living.”

People in need should visit sandwell.gov.uk/energybillsrebateor sandwell.gov.uk/costoflivinghelp