Despite the ongoing cost of living crisis putting a strain on households across the UK, finances will continue to be stretched this year as the mandatory tax is likely to rise in April. To help alleviate financial stress it's important to look into all of the different discounts available.
It was announced in Chancellor Jeremy Hunt's Autumn Statement that local councils across England and Wales could increase council tax by 5 percent without needing a referendum. The treasury expects most councils will be increasing council tax this Spring, and so here is a full list of all the council tax discounts that can be claimed and who is eligible, reports Chronicle Live.
However, as not all councils will offer the same discounts, it is important to find out exactly what support your local authority is able to offer by checking its website.
Single person discount
If you live on your own, you will be able to get 25 percent off your council tax bill, and this also applies if you have a disregarded person living with you. Someone is classed as disregarded when they are not counted by the local authority, which is the case for someone aged under 18, aged 18 or 19 and someone is entitled to Child Benefit for them.
It also applies if they are aged 18 or 19 and were still in education on 30 April. If they’re a school or college leaver aged 18 or 19 and they left after 30 April, then they will be disregarded until 1 November.
This discount also applies if there is one adult and one full-time student or student nurse living together in a property, or if there is one adult and one person who is classed as 'severely mentally impaired' in the home. According to Citizens Advice, someone is classed as 'severely mentally impaired' if their mental health condition is permanent.
However, to get the discount you will need to provide a doctor's certificate which says when their mental health condition started. The individual must also be claiming one of the qualifying benefits, which includes:
- Incapacity benefit
- Attendance allowance
- Severe disablement allowance
- Disability living allowance (higher or middle-rate care component)
- Increase in disablement pension (due to constant attendance being needed)
- Unemployability supplement or allowance
- Constant attendance allowance
- Income support (which includes a disability premium)
- Personal independence payment (standard or enhanced daily living component)
- Armed forces independence payment
In England and Wales you can also be receiving:
- Disability working allowance (based on getting income support including disability premium)
- Universal credit (including an element for limited capability for work or limited capability for work and work-related activity)
In Scotland you can also be eligible for, or receiving:
- Tax credits (including disability element)
- Employment and support allowance
- Universal credit
Long-term hospital patients, care home residents, those in a hostel or night shelter are also disregarded for council tax bills. Prisoners or someone in detention awaiting deportation are also classed as disregarded, as are those living in a bail or probation hostel.
If you host someone under the 'Homes for Ukraine' scheme, they are also disregarded for council tax. Additionally, if all residents in a household are classed as disregarded, then that household can receive a 50 per cent reduction on their council tax bill.
Student discount
If a household is made up entirely of full-time students then they do not need to pay council tax, and are eligible for a 100 percent discount. However, to be classed as a full-time student, your course must last at least one year and involve at least 21 study hours per week.
This rule applies to both specialist student accommodation and to private renting. To get the discount in private rental accommodation you may need to apply to your local authority for the discount.
Pensioner discount
Those that receive the Guarantee Credit element of Pension Credit could get a 100 percent discount on their council tax bill. However, those who have a low income and less than £16,000 in savings could also get help, but this depends on what the local council can offer.
Low-income households
Households that are on a low income or receive benefits could also have their council tax bill reduced, but this depends on where someone lives as each local authority runs its own scheme which can vary. Some areas can offer a full 100 percent discount on council tax, whereas others can only offer a smaller discount.
What discount you can get also depends on a variety of factors, such as:
- your circumstances which include your income, number of children, benefits, and residency status
- your household income - this includes savings, pensions and your partner’s income
- if your children live with you
- if other adults live with you
Another discount might be possible, called a 'second adult rebate' , which is possible when an adult you live with has a low income or receives particular benefits. You will need to contact your local council about this discount and supply the necessary evidence so that the council can calculate the new bill for the household.
Disabled person’s reduction
If you or someone in your household is disabled then you might be able to claim a reduction in council tax as the council could charge you the rate for the next lowest council tax band instead. This means that if your property is in band D, you'll pay the band C council tax rate and if your property is in band A, your council tax bill will be reduced by 17 percent instead due to band A being the lowest band.
Although to get the disabled person’s reduction, your property must have been adapted to meet the needs of the disabled person and have either:
- An extra kitchen or bathroom to meet the needs of a disabled person
- Any other room (except a toilet) which is mainly used by a disabled person to meet their needs
- Enough indoor space for a disabled person to use their wheelchair
Severe mental impairment discount
If you are classed as having a severe mental impairment (SMI) and you live alone you could get a 100 percent discount on your council tax. This discount can also apply if you live with one or more other adults who are also SMI adults or full-time students.
Households that are all SMI or student based, or a commination of both, are exempt from paying council tax altogether. A 50 percent discount could also be awarded to someone with an SMI living with one or more other adults who are also disregarded from paying council tax.
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