Some people may be eligible for a discount of up to 100% if they meet certain criteria
Council Tax in the UK is a mandatory local bill that people in most homes will have to pay. It is used to fund services provided by the local authority, like bin collections, libraries, policing, fire services, and road maintenance.
The amount people will pay each month is determined by a banding scale, ranging from A to H in England and Scotland, or A to I in Wales. Most homes where two or more adults live will not be entitled to any reduction on this bill.
People may be eligible to have a discount applied to their tax bill if they meet certain criteria, including their living situation and household income. In some cases, people might be able to claim a 25% discount on the monthly expense, whilst certain circumstances might make a person eligible for the complete fee to be waived.
The team at Martin Lewis’ MoneySavingExpert.com has published a guide that broadly puts these discounts into three different categories. Knowing your rights to a better deal could help families save hundreds or even thousands of pounds each year.
Council tax discounts based on who you live with:
In most situations, a home with at least two “qualifying” adults (aged 18 or over) will not receive any reduction on their council tax bill. In cases where only one adult lives alone at a property and still meets all other qualifying factors, they can apply to the local authority for a 25% sole occupancy reduction, alongside proof that they live alone.
In some cases, people might be entitled to a greater discount if the majority of people living in the property are “unqualified” to pay council tax. For example:
- Children – any under-18s living in the property will not be counted when it comes to council tax.
- Full-time students – To count as a full-time student, your course must last at least a year and involve at least 21 study hours a week. Full-time student nurses can normally claim this discount too.
- Adults considered to be ‘severely mentally impaired’ – This could include those who have Alzheimer’s, Parkinson’s, profound learning difficulties, multiple sclerosis or who have had a severe stroke. The person’s condition must be medically certified and they need to be in recipet of at least one benefit.
- Live-in carers – They are disregarded if they look after someone with a disability who isn’t their partner, spouse or child under 18, for an average of at least 35 hours a week. The person being cared for must also be claiming one of a few qualifying benefits.
- Care leavers (young adults) – If you grew up in care and are now leaving, or did in the past, to live independently, you may be due a council tax discount worth between 25 and 100% (how much depends on who lives in your new household).
Council tax discounts
If you’re on a low income or claim benefits, such as universal credit, your household may qualify for a Council Tax reduction – which can be as much as 100%. To get a Council Tax reduction, it doesn’t matter if you own your own home or rent, or whether you’re employed or not. What you get depends on:
- where you live
- your circumstances (such as income, number of children, benefits, residency status)
- your income, including savings, pensions and your partner’s income
- if any children or other adults live with you
If you or your partner are getting the ‘guaranteed’ part of pension credit, your household could be eligible for a full reduction on your Council Tax bill of up to 100%.
Council tax discounts
If your home has been adapted for a disabled person, and you can demonstrate this, you’ll drop a Council Tax band. Where your property is already in band A (the lowest Council Tax band) and you qualify for this discount, your Council Tax bill will be reduced by 17% instead.
The types of adaptations could include installing an extra bathroom or kitchen for a disabled person to use, or having a room that’s ‘predominantly’ used by a disabled person – such as a downstairs room in a two-storey house that has been turned into an accessible bedroom.
Unoccupied properties due to structural repairs or alterations can also be exempt from Council Tax for up to 12 months. Other circumstances in which empty homes do not have to pay council tax include long-term residents of a care home or hospital. in prison (unless you’re in prison for not paying Council Tax) or have passed away and are waiting for someone new to move in or have probate granted.
People should never just assume a discount has been granted. In almost all circumstances, property owners or tenants will have to manually apply for any sort of discount to be made.
