More than 63,000 homes in Reading will receive a £150 rebate on council tax to alleviate the impact of soaring energy costs.

The measure, which applies to homes in bands A to D, was announced by the Government on Thursday after Ofgem said they will raise the energy price cap by £693  a year in April.

Reading Borough Council is also adjusting its own council tax support scheme from April from a 65 per cent bill reduction to between 70 and 75 per cent.

Read more: Reading mum forced to eat or heat slams 'partying politicians'

Council leader Jason Brock said: “The Council is doing what it can to reduce the impact of rising prices on those people who are hardest hit by the steep rise in the cost of living.

“Residents eligible for Council Tax support will have more of their bill covered by the Council this year.

“We have supported thousands of eligible families in Reading with food vouchers during school holidays and helped thousands more with rising energy costs.

“But looking beyond the immediate challenges, we want all residents to share in Reading’s economic success.

“As such, we’re making financial provision for targeted work in those neighbourhoods with the lowest incomes and highest unemployment rates to help residents acquire the skills and access the opportunities they need to get ahead.”

Read more: Three Reading areas to be worst hit by 'catastrophic' energy, tax and food hikes

The proposal will go before the Council’s Policy Committee on Monday as part of a three-year budget proposal.

Plans include a below-inflation 1.99 per cent council tax increase and one per cent Adult Social Care precept for 2022/23.

Cllr Brock said: “The rise in the cost of living is greatly concerning, especially with the Government’s National Insurance increase in April and soaring energy and food prices.

“Taken together, the proposed Council tax and the adult social care precept increase in Reading this year is the lowest for a number of years.

“The largest proportion of homes in Reading fall into Band C, which means a 91p a week increase for the Council’s element, which does not include the police and fire authority share of Council Tax bills.”