Households across Wales are set to see a rise in their council tax on Friday. Many local authorities have raised the rate of council tax for the 2022-23 year which takes effect from Friday, April 1.
Each local council sets its own rate of council tax with new rates varying depending on where you live. The rises range from 1% in Rhondda Cynon Taf to 4% in Wrexham while Cardiff Council has approved a 1.9% rise and Newport's will go up 2.4%.
With so much financial worry on families and households at the moment amid the 54% rise in energy costs you might be worried about how to afford the latest increase. Thankfully there are a number of options available to you that could help you reduce your council tax bills.
Read more: Energy price cap rise: Nine simple things you can do right now to save on your energy bills
Get your £150 council tax rebate
In February UK Government chancellor Rishi Sunak said there would be a £200 rebate on energy bills for all households and that people in England living in properties in Band A to Band D for council tax will get an additional £150 council tax rebate. It wasn't immediately clear how this would work in Wales as council tax is devolved but the Welsh Government later confirmed it would offer a £150 cost-of-living payment to all households who live in properties in council tax bands A to D as well as recipients of the council tax reduction scheme in all bands. Find out everything you need to know about the rebate in Wales here.
If you are eligible for the scheme you don't need to apply as you should receive the money automatically. If you don't get it on April 1 you should contact your local council.
Check out the discretionary fund
The Welsh Government has also announced that £25m in discretionary funding had been allocated to local authorities in Wales. A spokesman said this week: "A further £25m will be available to local authorities in the form of a discretionary fund. They will be able to target this additional funding to help households which may be struggling."
Not everyone will be eligible for this however – you must be able to prove you are in financial hardship or a crisis situation. You must be over 16, have no other savings, and have considered all other legal and responsible lenders such as credit unions. If you qualify you can apply for the funding on the Welsh Government website here.
Apply to the council tax reduction scheme
If you are on a low income or receiving benefits you could be eligible for a reduction on your council tax. In Wales you can do this by applying to the council tax reduction scheme. You could be eligible for up to 100% off your bill if you’re on a low income or on benefits including universal credit.
However each council sets its own rules on reductions to council tax. They vary depending on where you live so it's best to check with your local council. When deciding if you are entitled to pay less the council will usually take into account your earnings, household income, the number of children you have, and how many people live with you, whether you’re on benefits, and your residency status.
For example according to Cardiff Council you cannot apply for council tax reduction if you have savings of £16,000 or more unless you receive pension credit guarantee. You can find your local council here to see what criteria they have for reducing your bill.
Check if you can get a reduction based on who lives in your house
You may be entitled to a reduction in council tax depending on whether you live with other people. If you're the only adult in your home you’ll get a 25% discount on your council tax bill.
When working out how many people live in a property some people aren’t counted – they’re called ‘disregarded people’. If everyone who lives in the property is disregarded there’s still a council tax bill but it will have a 50% discount. If everyone in your home is a student or severely mentally impaired you won't pay any council tax.
If you're entitled to a discount because someone has moved out you should tell your local council. You're entitled to the discount from when the person moved out even if you told the council later.
Someone will be disregarded if they’re:
- aged under 18
- aged 18 or 19 and someone is entitled to child benefit for them
- aged 18 or 19 and were still in education on April 30
If they’re a school or college leaver aged 18 or 19 and they left after April 30 they’ll be disregarded until November 1. Other people in a household who are disregarded include full-time students, those temporarily away from home, or those who have learning disabilities or severe mental impairment.
Check other ways you could pay less
There are a number of other ways you can reduce your bill or even have it scrapped completely. For example you might get a reduction if you have another home or if someone you live with is disabled. For more information on how to check whether you can get a reduction click here.
