Council tax rebate LIVE: Rishi INSISTS energy price cap relief ‘right thing to do’ amid bill boost for low-income homes

"Change is good"

Boris Johnson today put a brave face on the bombshell resignation of five top aides - quoting the Lion King that "change is good".

In a rallying cry to Downing Street staff, the PM said "As Rafiki in the Lion King says, change is good, and change is necessary even though it's tough."

He gave his team a pep talk in the Cabinet room following the brutal resignations that threw No10 into a tailspin.

The bombshell departure of loyal lieutenant Munira Mirza last night forced the PM to bring forward a planned clear-out of his chief of staff, comms boss and top mandarin.

And this morning he was rocked by a fifth resignation when a well-respected policy adviser followed Mirza out the door.

But defiant BoJo said, like a footie team, it was time to spit out the half time oranges and crack on.

The average water bill will rise from £412 a year to £419 from April

Christine McGourty, the chief executive of Water UK, said: “Customers will continue to pay little more than £1 a day for their water and sewerage service, helping to directly fund significant investment in improving infrastructure and enhancing the environment.

“But we know this a difficult time for many, and no-one should have to worry about their household essentials.

"There is a wide range of support available for those in need, and I would urge anyone who’s concerned to get in touch with their water company.

The bill rise comes as the cost of living surges putting household finances under pressure.

First Direct and HSBC mortgage interest rates

First Direct

First Direct told The Sun there is no immediate or automatic increase to rates that are not linked to the BoE base rate.

But it is keeping its rates under review and if there is any change to the SVR (currently 3.54%) it will let customers know.

For those on mortgages linked to the BoE base rate, the change comes in on the same day.

That means those with a tracker mortgage will see their rate has already gone up by 0.25%

HSBC

At HSBC it's a similar story - First Direct is owned by HSBC.

Tracker mortgage customers will see their rate has gone up by 0.25% today.

There's no immediate or automatic link between other rates and the BoE base rate and it's SVR will remain at 3.54%.

The bank is keeping mortgage rates under review though.

Barclays variable rates

Barclays has said it will increase its standard variable rates by 0.25% from March 1.

That means that it's current rate of 4.74% will rise to 4.99% for homeowners.

On a £200,000 25-year mortgage this increase will add £29 a month to repayments - or £348 a year.

Those with a buy to let mortgage will see the current SVR of 5.24% rise to 5.49%.

We've asked Barclays when the rate change will come into affect for tracker mortgage customers and will update when we hear back.

Can you refuse the £200 energy loan?

Some critics have said it is unfair that they are being saddled with extra charges in the future.

It is not possible to refuse the £200 energy payments though as they due to be applied by energy suppliers on customer accounts automatically.

Mr Sunak told the Martin Lewis Money Show last night that there will be no option to opt-out.

He said: "You shouldn't view it as debt, it's £200 off your bill, there's no interest charged on that.

"The £200 you've got you put that aside and probably make a little bit of money."

How is the £200 energy loan repaid?

The energy payments are loans rather than free money and will need to be repaid.

Customers will pay back the discount automatically in equal instalments of £40 a year over five years from April 2023 when wholesale gas prices are expected to come down.

This is expected to be reflected as an increase to standing charges on bills,the Treasury said.

Who will receive the £200 energy loan?

The £200 energy payments will be applied to all domestic energy customer accounts from October.

You don't have to do anything to receive it as the government will provide funding to all suppliers for them to pass on to customers.

It is only available for residential households so businesses will miss out.

Households on communal shared heating systems that are chosen by their freeholder may also be excluded as they are treated as commercial customers.

There will be a government consultation in the spring on how this system will work.

Energy price cap could be changed more frequently

The chief executive of Ofgem, Jonathan Brearley, told the BBC that they are still considering the move to adjust the price cap more frequently.

Brearley said the changes would mean “when prices go up it adjusts, but it will equally quickly adjust when prices come back down again”.

By doing so they hope to ease pressure on both energy suppliers and consumers.

Currently the price cap is reviewed every six months and the next time it could change will be August.

Help you can get on lowering your water bill

Water companies offer a range of support to struggling households, including a cap on bills for large families and those with certain medical conditions through the WaterSure scheme.

To qualify for the scheme you need to already have a water meter installed, and prove you need to use a lot of water.

Bills are capped at the average amount for your supplier, so the amount you could save will vary.

The Consumer Council for Water estimates that bills are reduced by £270 on average through the scheme.

Yorkshire Water says its low income customers can save £534 per year on average using WaterSure.

Social tariffs are also an option for those on Universal Credit and yYou can find out more about who is eligible for both schemes and how to apply in out guide.

Moving to a water meter along could save you cash and you can check if it's worth it using the 

Many water companies offer free water-saving devices that shave pounds off your bills.

How much will your water bill rise by?

The average bill will rise from £412 a year to £419 from April.

Here's the average annual bill rise (or fall) for major water companies, though as explained, the exact amount you pay can vary:

• Anglian: £430 to £452
• Welsh Water: £463 - no change
• Northumbrian: £330 to £365
• Seven Trent: £363 to £389
• South West: £503 to £472 (reduction)
• Southern: £419 to £402 (reduction)
• Thames: £420 to £423
• United Utilities: £425 to £422 (reduction)
• Wessex: £454 to £470
• Yorkshire: £425 to £419 (reduction)

Council tax bands in England

COUNCIL tax bands in England are based on property values as of April 1 1991. The bands are:

• A- up to £40,000
• B- £40,001 to £52,000
• C- £52,001 to £68,000
• D- £68,001 to £88,000
• E- £88,001 to £120,000
• F- £120,001 to £160000
• G- £160,001 to £320,000
• H- more than £320,000

Households living in pricey properties may be exempt from the council tax rebate

Every property is given a council tax band based on its valuation and who lives there.

Properties are split into eight council tax bands from A to H and local authorities then set their charges based on this.

There may be discounts if you or someone you live with are disabled, on benefits or vulnerable.

The valuations were last done on April 1 1991 so are based on what your home was worth 30 years ago and may seem outdated.

The Council Tax rebate will only be given to houses in the lower bands of A to D.

That is essentially properties that were worth up to £88,000 when the valuations were done in 1991.

Households that may be exempt from council tax rebate

Some households don't pay Council Tax at all so may not be eligible for the rebate.

This includes households where everyone is a full-time student on courses for at least one year and 21 hours study per week.

Lower-income older people who get the guarantee element of Pension Credit may also be exempt from Council Tax depending on the local authority.

Similarly, someone with a severe mental disability who lives alone or with a carer may not pay Council Tax.

Vulnerable pensioners and those with a disability may still be eligible for the local authority funding.

What to do about mortgage interest rates?

Mortgage borrowers on SVR or tracker rates will be contacted by their lenders about any changes in their monthly repayments.

It may be worth switching to a fixed mortgage so you know how much you need to pay each month and are protected from rate increases during the deal period.

Paul Neal, of broker Missing Element Mortgage Services, said: "If you are on a fixed rate you have no need to panic as your rate remains the same whatever happens to interest rates.

"But if you are on the lender's standard variable rate or your fixed rate is coming to an end, now is the time to speak to a local broker."

Savings rates may increase but there is no guarantee.

Even if they do, Sarah Coles, personal finance analyst for Hargreaves Lansdown, warns you will need a pretty high return to beat the inflation rate of 5.4%.

Regular boiler services helps to maintain efficiency

Regular services for your boiler can ensure it is working as efficiently as it should to warm your home.

Sunny Solanky, a smart energy expert at , said: "It will also prolong the life of the boiler so it doesn’t need replacing anytime soon."

Replacing a boiler altogether can mean a hefty outlay of more than £2,000.

There is help out there in the form of grants where you can get your costs covered - so long as you meet the eligibility requirements.

But boilers also have a warranty of around 10 years, though if you have not had regular services it might be invalidated.

Common problems with your boiler can be easily fixed if they're picked up in enough time, and as a result you could save £100s.

Measures do not go far enough says Nicola Sturgeon

Nicola Sturgeon, Scotland’s First Minister pledged “every single penny” of money it receives will be used to support people suffering from the rise in living costs.

During First Minister’s Questions, Sturgeon was asked about the plans that Rishi Sunak announced today.

She said that she welcomed the plans however they did not go far enough.

Sturgeon also too the opportunity to highlight her administration’s £41m support fund to help people who are struggling to pay fuel bills.

Greg Hands put on a brave face

Energy minister Greg Hands put a brave face on events this morning, insisting the departures were all part of a planned "shake up" of No 10.

He said: "We shouldn't be surprised there are changes overall. This shows the PM is in charge."

But he also repeatedly refused to answer whether he would have made the same remarks as his boss about Sir Keir.

Downing St will be braced for more resignations today as Boris battles to save his premiership in the wake of the lockdown-breaking scandal.

And there is also concern at the growing public rift between the PM and his Chancellor.

At a press conference last night Mr Sunak mocked Boris' partygate woes and slammed comments the PM made about Jimmy Savile.

Fresh turmoil for Boris

BORIS Johnson was rocked by yet another resignation this morning as a fifth Downing St aide sensationally quit.

Elena Narozanski, who served in the No 10 Policy Unit, has reportedly left her role in another bitter blow to the PM's authority.

News of her shock departure was broken by the Conservative Home website. No 10 has been approached for comment.

Ms Narozanski served as a special adviser to Boris on the rights of women and equalities.

She was a member of the Policy Unit run by the PM's close ally and friend Munira Mirza, who sensationally quit yesterday.

Ms Mirza stunned No 10 when she walked out with an astonishing broadside against the PM’s jibe that Sir Keir Starmer failed to lock up celeb paedo Savile.

Her shock exit sparked a flurry of resignations from Downing St last night.

Water bills to rise by up to £23 a year

WATER bills are to rise by up to £23 a year in another blow to households struggling due to the cost of living crisis. 

Bills will go up by 1.7% or £7 a year on average, WaterUK said. 

But some parts of the UK will see above inflation rises, including Essex and Suffolk where the average bill is going up from £223 to £246 a year. 

Ofwat, the water regulator, called on firms to provide support for customers who were struggling to pay.

David Black, Ofwat's interim chief executive, said: "Many households are worried about their bills, and we expect water companies to play their part in supporting customers.

"Our research shows that only 15% of customers know about the financial help available to them, and just 3% are actually getting financial support from their water company."

WaterUK said that around 1 million households are now getting help with their water bills and that's expected to rise to at least 1.4million by 2025.

What should people do now?

The £200 discounts won't come until October 2022 and will be applied automatically.

That is a long time to wait though.

The traditional energy market advice is to shop around for a cheaper deal.

It is still possible to do this through a comparison website but experts have previously advised that many fixed price deals are still more expensive than the price cap so you may be better off staying on a default deal for now.

Justina Miltienyte, energy policy expert at comparison website Uswitch.com said this hike will have "damaging consequences" for households despite government attempts to counteract the rising costs.

She said: “The measures will only be sticking plasters on a long term problem, and it’s consumers who will ultimately be paying the price.

“This situation is even worse for those in fuel poverty, who are already trapped in a vicious cycle of energy debt."

How can I get the £150 council tax rebate?

Most people who pay their council tax by Direct Debit will have the amount refunded straight into their bank accounts.

Those people will receive the cash from April and don't have to apply.

Households who don't pay by Direct Debit will have to make a claim, and you can do this from April.

You should  to find out how to submit your claim.

Unlike the £200 energy bills payment, also announced today, the £150 council tax rebate will not have to be repaid.

Bank of England boss says it will get better by 2023

The Bank of England recently increased interest rates from 0.25% to 0.5% and said that it expected prices to climb faster than pay.

It is understood that workers are currently getting pay rises of around 5% on average, according to a Bank survey.

Mr Bailey warned that people would notice the impact of rising prices in the year ahead.

"It is going to be a difficult period ahead, I readily admit, because we are already seeing, and we're going to see, a reduction in real income," he said.

"We're going to start coming out of it in 2023, and two years from now, we expect inflation back to a more stable position."

Why has the price cap increased so much?

It has now been confirmed that the energy price cap will go up to £1,971 in April.

The increase had been widely expected amid soaring wholesale costs and a string of energy supplier collapses.

But it means households are now paying more than double what they were a year ago for energy.

Since the beginning of the Autumn season last year, households have been forking out hundreds more than they had to before, to foot their energy bills.

The energy regulator announced in August that the price cap would rise by £139 from October 1 to £1,277 - the highest since the cap launched in January 2019.

It's because of rising wholesale gas prices impacted by the pandemic, lack of supply and other issues.

Wholesale prices shot up more than 250% in the space of a year.

As a consequence, the average wholesale gas price hit 470p per therm in December, up from 48.29p this time last year.

But importantly, Ofgem has hiked the cap to stop more suppliers going bust.

Mr Sunak defied calls to scrap the tax hike

As energy bills and interest rates went through the roof, Mr Sunak defied calls to scrap the tax hike to ease the pressure on struggling families.

He said: "I do believe this is the right thing to do. If you think, what's the country's number one priority when it comes to public services? It's the NHS.

"And we're faced with a situation where the backlogs are growing to unacceptable levels as a result of Covid."

The NICs hike will raise £13billion a year to clear NHS backlogs and reform social care.

Mr Sunak told a Downing Street press conference: "It's a difficult decision to introduce a new levy. It's not something I would wanted to have to do."

The Chancellor, who is eyeing a leadership bid, suggested he wanted to cut taxes before the next election.

It came as the Bank of England warned living standards will tumble to their lowest since records began in 1990.

Martin Lewis reveals best option after energy bill rise

Martin Lewis predicted that the energy price cap could surge by 20% when it is reviewed again in October.

"Now of course anything can happen, but there ain't no market fix that you should be going for right now," he said on ITV's  last night.

"Maybe some existing customers in certain circumstances with high or low use might find one...but the big message for most people is do nothing, stick on the price cap, don't fix."

If you don't think the price cap will rise again, you would need to find a deal that's no more than 44% expensive than the current cap.

But if you do expect it to rise in October - as experts do - you should find a fix no more than 59% more than the current price cap, Martin said.

Chancellor Rishi Sunak yesterday outlined a package of support for those affected by the price hike and announced the poorest Brits will get an extra £350 to help them through the energy bills crisis.