This month sees the first time that any council tax rises will begin to bite as April is the first month of local authorities' new fiscal year – but if you find yourself struggling, a finance expert has some ways you might be able to cut the cost of your bill.
Money expert Lynn Beattie, who runs the Mrs Mummypenny finance blog, says with council tax you can choose to pay in 10 or 12-monthly instalments. She suggests the ten-month method: "It feels like I am saving money in those more challenging post-Christmas cost months with no payment."
Most people pay council tax for local services including refuse collection, police and fire services. It's a "priority bill" that must be paid – failure to pay quickly escalates into bailiffs at the door, fines and even imprisonment. "Most of us will have seen an increase to this essential bill," says Lynn.
"Mine has gone up by seven per cent – the biggest percentage increase I have ever seen." But it must be paid – even if you are struggling to pay your other bills. However, Lynn has come up with some ways you may be able to cut what you have to pay, in an article she wrote for the Mirror.
£150 council tax rebate
By now many people should have received a £150 credit – a payment from the Government to help towards the rising energy prices. This is only for people living in council tax bands A to D and will be credited automatically if customers pay via direct debit. If the credit hasn't yet arrived, it should do so by the end of the month. However, Lynn says: "Personally, this pays for just two months’ worth of my direct debit increase."
This October the Government has offered another £200, but this is in the form of a loan that will need to be repaid via energy bills over five years. "We are yet to find out what else the Government might do to help with the cost of living crisis," says Lynn.
Those entitled to the credit but who do not pay by direct debit should go the local council website and complete a form. "Don’t miss out on this £150," urges Lynn.
Single person discount - 25% off
You can get a 25% discount on your council tax if you are a single adult living alone. The MummyPenny blogger says: "This applies to me, and I ensured that I claimed the discount as soon as I became a single home dweller.
"This also applies if you live with other non-council tax paying adults – such as those over 18 in full time education, some adults on apprentice schemes and some carer roles. This discount is frustrating for single people or parents like me, who still must pay 75% of a bill, rather than the 50% it would be in a couple, a single person tax."
Benefits and low income discount - up to 100% off
Based on your living circumstances, income, and benefits, you could be eligible for council tax support, says Lynn. "Every local authority has different rules, and it's potentially a postcode lottery but it’s absolutely worth checking what discounts might be available.
"Go to your local council website and search for Council Tax Support and check the criteria."
Check credits on old council tax bills
If you have recently moved house you should check your council tax accounts on your old address – you might have some credits sat there. "A friend recently discovered a credit on two old addresses that she had forgotten about – an unexpected bonus," Lynn reports.
Check your council tax band
Your council tax banding is based on your house valuation from 1991 – that's 31 years ago! So Lynn suggest you check other similar houses in your road to make sure you are all in the same banding.
"If not, then you can make a claim and challenge to change your council tax banding via your local council," says Lynn. "Just head to your local council website for an application form. You can also apply for a council tax reduction if anything has changed to reduce the value of your house – including things like alterations to house for disability needs or maybe a motorway that has been built nearby, or a mobile phone mast."
Section 13A council tax write offs
Says Lynn: "This is a little-known way of potentially having your council tax debt written off if in extreme financial difficulties.
"This is normally applied in rare circumstances of an uninhabitable property – but also in time of financial difficulty. It is by no means a certainty, so do look at other reduction methods first.
"You will need to make an application via your local council and supply supporting evidence, including an income and expenditure statement, payslips and bank statements to prove that the debt cannot be repaid. You can read more about this here.
"If you are struggling with debts and/or priority bills do reach out to free debt charities, including Citizens Advice, Step Change and National Debtline."
For more stories from where you live, visit InYourArea.
