We got a £20,000 refund thanks to Martin Lewis tip – I had no idea I’d been missing out on a little-known bill discount
A MARTIN Lewis fan revealed how the expert’s handy tip helped them to get a £20,000 refund.
In the latest MoneySavingExpert (MSE) newsletter, a reader called Paul shared how he was due a discount on his council tax bill.
Paul had read MSE’s advice on how those with severe mental impairment (SMI) can get a discount on their council tax payments.
The “severely mentally impaired” (SMI) council tax discount is a a mnimum of 25% reduction of a household’s council tax bill.
A person is considered as being severely mentally impaired if they have a severe impairment of intelligence and social functioning, which appears to be permanent.
This can include people suffering from Alzheimer’s disease, Parkinson’s, a stroke and similar illnesses.
Due to the huge number of illnesses or impairments that could qualify, it’s thought that hundreds of thousands are missing out on SMI.
An SMI discount can go all the way up to, in some cases, the entire bill being wiped.
Paul wrote to MSE after finding out his family were due a discount because his son lives with cerebral palsy, and that he and his wife qualified for a council tax discount and they’re both live-in carers.
He said: “We’ve just received an email from our council, confirming a refund of £19,593.
“This is backdated to May 2007 – the year of our son’s 18th birthday.”
According to MSE, it is thought that thousands of people are missing out on the SMI council tax discount.
Households should check online to see if they may qualify but did urge that discounts may differ from council to council.
Also, the condition must have been diagnosed by a doctor.
When it comes to SMI discounts, the size depends on who you live with.
Council tax is discounted based on how many qualifying adults live in a house.
Having SMI means you don’t count as a qualifying adult – similar to full-time students and those under 18.
If you have SMI the following applies to you depending on your living situation:
- SMI living alone – house gets 100% council tax discount
- SMI living with an adult carer – 50% council tax discount
- SMI living with one qualifying adult – single person reduction 25% discount
- SMI living with two or more qualifying adults – no discount
It’s important to note that if there are under-18s, full-time students or others with SMI in the house as well, they don’t change the situation.
That’s because they don’t count towards council tax either – so a house where someone with an SMI lives with an under-18 still gets the 100% discount.
What council tax support is available?
THERE are several ways you can get discounts and reductions on your council tax bill.
In some cases, you can even get the bill completely wiped with a council tax reduction.
Factors such as your household income, whether you have children, and if you receive any benefits, will influence what you get.
To apply, visit https://www.gov.uk/apply-council-tax-reduction.
You’ll need your National Insurance number, bank statements, a recent payslip or letter from the Jobcentre, and a passport or driving licence when filling out the details.
Below, we reveal all the ways you can get discounts or a reduction on your bill:
Single person discount
If you live on your own, you can get 25% off your council tax bill.
This also applies if there is one adult and one student living together in a property, or if there is one adult and one person classed as severely mentally impaired in the home.
If you live with someone who doesn’t have to pay council tax, such as a carer or someone who is severely mentally impaired, you could get a larger reduction too, of up to 50%.
And, if you live in an all-student household, you could get a 100% discount.
Retirees
Pensioners may also find themselves eligible for a council tax reduction.
If you receive the Guarantee Credit element of Pension Credit, you could get a 100% discount.
If not, you could still get help if you have a low income and less than £16,000 in savings.
And a pensioner who lives alone will be entitled to a 25% discount too.
Low-income households
If you are on a low income or receiving benefits, you could be eligible for a reduction on your council tax.
Whether you are eligible will vary depending on where you live.
You could also get a deferral if you’re struggling to pay your bill, or you can speak to your council about setting up a payment plan to manage the cost.
But one thing to remember is if you are struggling you should contact your council as early as you can.