THE Scottish Government is to give more than 1.8million homes a £150 council tax discount to help them cope with the cost of living.

SNP finance secretary Kate Forbes said almost three quarters of the homes in Scotland would benefit.

She admitted the scheme was “imperfect” but would be quick and simple.

Last week Chancellor Rishi Sunak announced all homes in England in Bands A to D would get a £150 rebate off their council tax bills to help with household costs.

All UK homes will also get a repayable £200 off their energy bills.

Mr Sunak said the council tax rebate would mean an extra £290m for Holyrood under the Barnett funding formula.

Ms Forbes disputed that, but said she would still provide £290m of help overall.

She told MSPs: “Firstly, we will provide £150 to every household in receipt of Council Tax Reduction in all Council Tax bands. The Council Tax Reduction Scheme already identifies households in greatest need and will allow us to target this intervention.

“Secondly, I will provide local authorities with funding to pass on £150 to other occupied households in Bands A to D in Scotland.

“In total, combining these elements, 1.85 million, or 73 per cent of all households, will receive £150 of support.

“I have discussed this matter directly with [council umbrella group] Cosla, indicating my preference for this to be distributed as a payment rather than as a Council Tax credit.

“However, due to the urgency of mobilising this funding quickly, Councils will have a choice – they can deliver a direct payment or a credit to Council Tax accounts, as long as it can be done in April.

“This is clearly an imperfect scheme, it will reach some households who may not need this, but it is the only route we have to make sure we reach those for whom it will make a difference, quickly and simply.

"So, the third element of the package, is that I am also announcing £10 million in 2022/23 to continue our Fuel Insecurity Fund to help households at risk of self-disconnection, or self-rationing their energy use, due to unaffordable fuel costs.

“This package today is in addition to the further £120 million I announced previously for local government in 2022/23, to ease their pressures and help prevent inflation busting Council Tax rises.”