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MILLIONS of households are set to receive a £150 council tax rebate to cope with the cost of living but some will miss out due to where they live.

Here are the people who won't benefit from the council tax rebate.

The council tax rebate will only be given to houses in the lower bands of A to D, here is who may miss out
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The council tax rebate will only be given to houses in the lower bands of A to D, here is who may miss outCredit: Alamy

Chancellor Rishi Sunak unveiled a £150 council tax rebate this week as part of a range of measures to tackle the rising cost of living.

It will be automatically applied to council tax bills in England from April and the idea is that it will free up spare cash for families to cover rising bills elsewhere such as for food and energy.

Not everyone is eligible though.

The rebate is only being given to households living in properties within Council Tax bands A to D.

Mr Sunak said this represents 80% of households and most low to middle-income people.

There is also a separate £144million fund to be distributed by local authorities for vulnerable people or those on low incomes who are exempt from the charge or live in higher council tax bands.

Further details of this scheme and how it will be allocated are set to be revealed next week.

Here are the people who will miss out on the rebate.

Households living in pricey properties

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.

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

The valuations were last done on April 1 1991 so are based on what your home was worth 30 years ago and may seem outdated.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

Anyone living in council tax bands E to H may not be eligible for the support unless they qualify as vulnerable or on low income under the discretionary local authority fund.

The value of properties in these higher council tax bands in April 1991 started at £88,000.

You can find out your council tax band by checking with your local authority or on the postcode checker.

It is possible to challenge your council tax band if you think you are paying too much.

Households exempt from council tax

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.

Households in Scotland, Wales and Northern Ireland

Council Tax is devolved to other regions in the UK.

That means Scotland, Wales and Northern Ireland will need to come up with their own form of council tax support and people living in these countries may not get the same £150 rebate.

The Treasury said the devolved governments will receive total funding of £565million for their own schemes.

This comprises around £290million for the Scottish Government, £175million for the Welsh Government and £100 million for the Northern Ireland Executive.

The devolved administrations will be able to choose how and whether to spend this funding this year or next year.

What other help is available?

If you're not eligible for the rebate, you should check whether you qualify for any other help or discounts.

Single people are entitled to 25% off their bill, while an adult living with a student can get 50% off.

If you are on a low income or receiving benefits, you could eligible for a reduction on your council tax.

The requirements to get help will vary depending on where you live, so the best first step is to check with your local council.

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