"I can't fathom it," he said. "Grey Power has been trying to get through to people why they should ask for the rebate and the reaction is tardy. We publicise the rebate in our newsletter, we've had a stall at the libraries with all the application forms but believe it or not people are not that interested."
Mr Feringa said he suspected a lot of people on low incomes who could be eligible thought the scheme was only for those aged 65 and over who were getting superannuation.
He also thought people were reluctant to give out their personal information on the application form.
Aucklanders made the most claims in the country in 2013-14, or 17.5 per cent, while Christchurch had 8.5 per cent and Tauranga 4 per cent.
Nationally, the Government has provided $56.5 million this year to the Internal Affairs Department which administers the claims.
Local Government New Zealand vice-president Brendan Duffy said the scheme was critically important and the Government adjusted it according to the consumer price index.
But councils struggled to alert low-income people to it. "Those on the lowest incomes are the most difficult to connect to - they don't have internet access, they live alone, or once they finish working have no appreciation of how to go about it.
"People either don't know about it, or feel uncomfortable asking for a handout," Mr Duffy said.
"The scheme works well ... the tragedy is only half of the eligible people get it."
He said it would be better if those on the lowest incomes were automatically given the rebate rather than having to be motivated to come in to the council office and ask for it.
Auckland residential ratepayers could face an average rates rise of 5.6 per cent for 2015-16 - up $375 a year for 85 per cent of ratepayers.
Mayor Len Brown said people who had problems paying their rates had a choice of rates rebates, remissions and postponements.
"I would expect those options will be very clearly publicised once rates for 2015-16 are decided next year and I would really hope people who might have issues would consider those options."
Reducing the bill
What is the rates rebate scheme?
It gives a deduction in the rates bill of those on low incomes to help them meet the cost.
Does it come out of council rates?
No. It is Government-funded. The local council processes the claim for approval by the Department of Internal Affairs.
Who can apply?
The person whose name is on the rates bill as owner of the property.
What is the income threshold?
$24,250 in 2013-14 but the threshold rises by $500 for each dependant. Two children rises to $25,250.
