‘Soul destroying’: Rishi Sunak slammed for council tax rebate which excludes many Londoners in house shares

Hundreds of thousands of Londoners living in house shares may not get any help from Rishi Sunak’s council tax rebate scheme, designed to soften the cost of living crisis.

And government plans to help with soaring energy bills via a council tax rebate have been slammed as “frustrating” by those in houses of multiple occupancy, who may not benefit from the scheme.

Electricity and gas bills are set to hit record highs, with the average home paying £693 more for energy per year in April amid a wider crisis in the overall cost of living, with inflation rising.

It follows the energy price cap - or max charge per unit - rising by 54% after record demand.

Chancellor Rishi Sunak has announced a £200 loan towards all electricity bills, which people must later repay, and a £150 council tax rebate for all but the most expensive properties, covering homes in Bands A-D.

Labour figures have branded the plans a “buy now, pay later” scheme.

According to Government figures, 2.45 million houses in the capital are due the rebate.

Critics of the Conservative’s scheme have blasted the rebate as “frustrating” and “soul-destroying”, as it won’t benefit renters living in homes of multiple occupancy (HMOs).

Shared houses are more popular in London due to sky high house prices.

While some renters pay council tax directly to their local authorities - meaning they will benefit from the rebate - others have the charge included in their rent to their landlords.

There are an estimated 150,182 HMOs in London, according to government housing statistics for 2020-2021, but that does not mean all tenants will pay council tax via their landlords.

But this could mean hundreds of thousands of Londoners may miss out on the rebate.

Renter Artemis Winstanley, who lives in a five-bedroom house share in Poplar, in Tower Hamlets, said the situation was “ridiculous” and “bills have definitely been climbing”.

The household won’t receive the rebate, as they each rent separately and the landlord pays the council tax, but since 2018, their shared energy bill has risen from £85 to £130 a month.

The 29-year-old, who works in cyber security, told LondonWorld: “It definitely is very frustrating, and just a little bit soul-destroying.

“The energy bills have definitely been climbing for as long as I’ve been keeping an eye on them. I’m not looking forward to looking at next month’s paperwork.”

And they added: “I’ve cut back on non-essential spending like video games and coffees to keep things manageable.

“Especially over the last two years where we’ve been stuck at home to protect everyone, it would have been nice to perhaps not be worrying about money too.

“It is quite a ridiculous situation, when you think that National Insurance is set to rise too… it genuinely feels like the government haven’t thought this through at all.”

Dan Wilson Craw, from housing campaigners Generation Rent, said: “There will be a lot of renters who are in large shared homes that may be worth a lot so end up in a higher tax band, but may also be poorly insulated so will already cost a lot to heat.

“They might qualify for a discretionary payment, but this will be difficult to do when there are a lot of people. It would be easier to extend the rebate to homes with HMO licences.”

While director Alicia Kennedy added: "Nearly two thirds of private renters live in poorly insulated, inefficient properties - they’re already paying through the nose to keep warm.

"The £200 discount will have to be paid back and those who qualify for the £150 rebate will see it gobbled up within months.”

During a press conference at No10, the chancellor backed the policy, saying: “In total we’re helping the vast majority of families pay their energy bills with £350.

“Our plan is right, it is fair, and I hope it will help ease the anxiety that millions of people feel about rising energy costs by sharing the burden between us all.”

The multimillionaire chancellor, an ex-Goldman Sachs banker, who is thought to be the richest MP in the House of Commons, added: “Anyone who tells you there is an easy answer to this situation isn’t being straight with you.”

“The reason for doing this through the council tax system is because it’s the easiest way to help the families that need it most.”

Pressed by journalists, Mr Sunak insisted he would continue with the planned national insurance rise slated for April - which opponents have called on him to cancel.