Can you cut down your Council Tax?

Do you own or rent a house? Then it is very likely that you have to pay Council Tax. If you have a look at your bill (it might be hidden somewhere in the small print at the back) it will tell you that there are several possibilities for getting a reduction on the total -  so you might not have to pay the full bill. In this article, we give details of some of the most common discounts and exemptions: have a look and see if you can apply for any of them.

Council Tax Discount

Council Tax Discount is a discount for people on benefits or a low income to help them pay their Council Tax bill. Help with council tax is not included in Universal Credit and you must apply to your local council for Council Tax Discount. (It might also be called Council Tax Support or Council Tax Reduction). If you apply for Council Tax Discount and it gets awarded, the Council will pay part of your bill for you, or in some circumstances they will pay your full bill.

Although Council Tax Discount is available in every council the rules around who can get it and and how much you will get vary. So, check your local Council’s website for their rules. With most Councils you can apply online. Council Tax Discount isn’t normally backdated, so the sooner you apply, the better.

Sole Occupier Discount

A full Council Tax bill is based on at least 2 adults living in a home. The adults are all responsible for paying the bill. But if you live on your own you will get a 25% discount on your Council Tax Bill. This is also the case if all the other adults who live with you don’t have to pay Council Tax (because of their particular circumstances – see below). You will have to tell the Council that you are the only adult in the home who has to pay Council Tax so they can give you the 25% discount.

Disregarded for Council Tax Purposes

Some people are ‘disregarded for Council Tax purposes’ which means that they don’t have to pay Council Tax. For example, students and people who are severely mentally impaired (including those with Alzheimer’s, Parkinson’s, or who have had a stroke) fall into this category. A full list of people who don’t have to pay Council Tax can be found here.

Disabled Band Reduction Scheme

If you are disabled and you need a larger property to live in because of your disability, you might qualify for the Disabled Band Reduction Scheme. If your application is successful, your Council Tax Band will lower (for example from D to C) or with Council Tax Band A you will receive a discount.

So it is definitely worth checking if you can lower your Council Tax. If one of the above applies to you, you can go to your Local Council’s website to apply for those discounts and exemptions. Not sure yet? This page from Citizens Advice might be helpful.

Something else to consider here is if your house is in the correct Council Tax band. According to the Money Saving Expert website, up to 400,000 properties in England and Wales are in the wrong band - if this is true for your property, you could be overpaying! Find out more and work through the steps to check your property here.