About 80 per cent of households will benefit from the council tax rebate, but latest research suggested that the support is far less generous than it seems.

The Telegraph analysis showed that council tax bills in Kingston-upon-Thames could rise by £105 for Band D properties if they follow the same trajectory as last year. This is before the fire and police precepts are added on to the bill. 

In West Northamptonshire, the bill could come in at £104, while in Harrow bills could rise by £100.

However, households will get some relief as the cap on the social care precept, which pays for care costs, has been cut from three per cent to one per cent.

Peter Smith, director of policy and advocacy at National Energy Action, said: “The shine is already coming off their plans.

“Although four in five households will receive the council tax rebates, they won’t benefit those who are already getting a discount or those who are exempt. 

“For those who do receive the rebate, it will be swallowed up by the council tax rises.”

Sir Ed Davey, leader of the Liberal Democrats, said the latest proposals on council tax were “a betrayal of the squeezed middle”.

He said: “The meagre £150 rebate looks set to be wiped out by the expected rise in council taxes, as cash-strapped local authorities are left to pick up the tab for social care and other vital services. 

“This comes on top of the unfair National Insurance tax rise, which will clobber the squeezed middle.”