The Office for National Statistics (ONS) has completed a classifications assessment of the Council Tax rebate in England, which is part of the UK government’s recently announced Energy Bills Rebate package.

The assessment has been completed in the context of international statistical rules laid out in the United Nations System of National Accounts (SNA) 2008, the European System of Accounts (ESA) 2010 and the accompanying Manual on Government Deficit and Debt 2019.

The ONS has concluded that there is no reduction in Council Tax liability and the Council Tax rebate in England should be classified as a payable tax credit, specifically as a current transfer paid by the central government subsector to the households sector. Further information on this classification can be found in our Public Sector Classification Guide.

The classifications assessments of the associated discretionary fund for local authorities, and the Council Tax rebate in Wales and Scotland will be published when all the relevant information has been reviewed. Classifications assessments for other parts of the Energy Bills Rebate package, including the proposed £200 discount on autumn 2022 domestic energy bills, will be made when more information becomes available.