How to get your council tax reduced or even FREE and save £1,000s a year
THOUSANDS of households will be looking for ways to cut back in January after overspending at Christmas.
One way to reduce your bills is to apply for a Council Tax reduction.
If you are on a low income or are entitled to certain benefits then you may be able to claim a Council Tax discount of up to 100%.
The amount of Council Tax you pay to your local authority depends on the value of the property you live in.
The average Council Tax of a Band D property in England is currently £2,171.
But bills will rise again by up to 5% next April, which could force some households to pay hundreds of pounds more.
Whether you are entitled to a Council Tax reduction depends on several factors including:
- Where you live
- Your circumstances such as your income, number of children, benefits and residency status
- Your household income including savings, pensions and your partner’s income
- If your children live with you
- If you live with other adults
You can apply if you own your home, rent or are unemployed or working.
Every council runs its own scheme, which means the help available can vary.
Here we explain what you can get and how to claim.
Single people
You could get a 25% Council Tax reduction if you live on your own or if others at home are classed as “disregarded”.
You are disregarded if:
- You are under 18 years old
- On certain apprentice schemes
- 18 or 19 years old and in full-time education
- A full-time student at a university or college
- Under 25 years old and receive funding from the Education and Skills Funding Agency
- A student nurse
- A foreign language assistant who is registered with the British Council
- Severely mentally impaired
- A live-in carer for someone who is not your partner, spouse or child under 18
- A diplomat
For example, if a single adult lives with a severely mentally impaired person then they can get 25% off their council tax.
Meanwhile, if you live in an all-student household then you do not need to pay any council tax.
How to check how much council tax you pay
BEFORE you cut your bill it is important to know how much you pay in council tax each year.
You can find your council tax band on GOV.UK for homes in England and Wales.
If you live in Scotland then you can check on the Scottish Assessors website.
You will need to enter your postcode and scroll through the listed addresses to find yours.
Local councils must contact you directly every time your bill is set to go up or down.
They should do this via letter or email.
You can find out which local council is yours on the GOV.UK website.
Low-income households
You may be able to get a Council Tax reduction if you are on a low income or receive certain benefits.
Whether you are eligible and what you will get depends on where you live.
For example, households in Birmingham can apply for Council Tax Support if they receive certain benefits such as Universal Credit or Employment Support Allowance.
The support is calculated as a means-tested discount.
This means the amount each household will have to pay towards their bill will depend on their household circumstances.
Meanwhile, in Manchester, you can claim Council Tax Support when you apply for Universal Credit.
You can also spread your payments to reduce the amount you are asked to pay on each bill.
You can choose to spread your payments over 12 months instead of the usual ten to make them more manageable.
Contact your local council to set this up for you.
Your council may also give you a one-off discount if you still cannot pay what you owe.
If you are struggling to pay then contact your council sooner rather than later.
Pensioners
Pensioners may also be able to get a council tax discount if they receive certain benefits.
Those on the Guarantee Credit element of Pension Credit could get up to 100% off their bill.
If you do not get Guaranteed Credit but have a low income and less than £16,000 in savings then you may still get some help.
Meanwhile, if you are a pensioner who lives alone then you will qualify for a 25% discount.
If you have not yet reached the State Pension age then the Council Tax reduction you are entitled to is worked out using “working age scheme” rules.
Often these rules are less generous than for those who have reached the state pension age.
Check these rules with your local council.
Severe mental imparement
You could apply for a 25% council tax discount if you live with someone who is severely mentally impaired.
To be eligible there must be no other adults in your household or everyone else in your home must have been disregarded.
If you are severely mentally impaired and you live on your own then you may qualify for a 100% discount.
You could also be exempt from paying council tax if any other adults in your household either qualify as severely mentally impaired or are full-time students.
You could also get a 50% discount on your Council Tax bill if everyone else in your household is disregarded.
How to apply
To apply for a council tax reduction contact your local council.
If you are unsure which council area you live in then you can use the tool on the government’s website.
If your application is turned down then you can write to your local council and ask them to review it.
You should do this within two months of the date the local council tells you its decision.
Make sure to say what you think is wrong.
If this is unsuccessful then you can appeal to the Valuation Tribunal Service.
If you are struggling to pay then always contact your local council as soon as you can.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories