Nottingham City Council has outlined how it will distribute more than £20m through council tax energy rebate schemes to help households struggling with the cost of living crisis. In February, the Government wrote to local authorities to inform them of the introduction of an Energy Rebate Scheme (ERS) that would provide a one-off payment of £150 to qualifying households, using the Council Tax data to identify qualifying households.
Since then it has taken a period of time for the Government to release details of the scheme and the ways to allow the role out of the wider funding. The scheme has two elements: a non-discretionary and a discretionary element. The criteria for the distribution nondiscretionary element of the ERS has been set by Central Government but local councils are required to draw up the discretionary scheme for households which haven't qualified for a payment under the non discretionary scheme.
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The city council has consulted with other local authorities to develop a policy for the allocation of the discretionary element of the ERS. The Government has set a tight time frame for councils to distribute this money and any funding not distributed within this timeframe will be withdrawn/recovered by the Government. Non-discretionary funding needs to be distributed by the end of September and the discretionary funding needs to be distributed by the end of November 2022.
Funding has now been received by the council for both elements of the ERS (Non-discretionary £19.8 million, Discretionary £0.85 million) to help with the cost of living crisis. And the council has provided a breakdown of the proposals for those eligible to financial support from the discretionary scheme:
• Households in bands E – H in receipt of Council Tax reduction
This group is not included in the non-discretionary scheme due to the banding of their property but being eligible for Council Tax reduction means they require and receive help paying their bills
• Households in bands E – H in receipt of disability relief
This group is not included in the non-discretionary scheme due to the banding of their property, but being eligible for disability relief means they require and receive help paying their bills
• Households in bands E – H in receipt of Carers' Discount
This group is not included in the non-discretionary scheme due to the banding of their property, but being eligible for Carers' Discount means they require and receive help paying their bills
• Properties with exemptions due to all residents being under 18 or only occupied by severely mentally impaired in Band E – H
This group is not included in the non-discretionary scheme due to the banding of their property but the occupants are eligible for other support
• Houses in Multiple Occupation where the residents pay their energy bills but not their Council Tax
This group would not automatically be eligible because their landlord pays their Council Tax, but as the residents pay their energy bills, and this amount is intended to support with energy costs, these households would benefit from receiving this funding
• Top-up amount for care leavers for whom Nottingham City Council retains corporate parenting responsibility (this is until they are 25)
This group has been identified for a top-up amount due to our ongoing corporate parenting responsibility and the fact this additional funding would make a big difference to the cohort
All care leavers are exempt from paying Council Tax until they are age 20 (this is a local decision)
All pay energy bills so would benefit from this additional amount
• Top-up discretionary amount for pensioners on Council Tax support in properties in bands A – D
This group has been identified for a top-up amount due to their limited budgets, additionally there is an increased chance of them being home more frequently or being unable to keep active to keep warm due to mobility issue
- Top-up discretionary amount for pensioners on Council Tax support in properties in bands E – H
This group has been identified for a top-up amount due to their limited budgets, additionally there is an increased chance of them being home more frequently or being unable to keep active to keep warm due to mobility issues
Top-up discretionary amount for working age households on Council Tax Support
This group has been identified for a top-up amount due to their limited budgets, to provide extra support
Deputy leader and portfolio Holder for finance, Councillor Adele Williams, said: “Many people in Nottingham are facing hardship and difficulties due to the cost-of-living crisis, and so any help and support that can be provided is welcome.
"Since the Government announced the Energy Bills Rebate package of support earlier this year, we have been working to distribute payments to eligible households. We have set up systems to allow us to safely make payments to people who don’t pay their Council Tax by direct debit.
“The Government allocated £19.8m of non-discretionary funding for us to make a one-off payment of £150 to all Nottingham City households in Council Tax bands A to D. We have made the vast majority of payments and will be in touch with those we haven’t yet progressed to discuss next steps. We are on track to complete these allocations by the September 30th deadline.
“We have been allocated a further £847,000 of discretionary funding to be paid out before November 30th. All eligible households will be written to.”
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