Families could save hundreds or even thousands of pounds each year by knowing if they qualify
Council Tax in the UK is a compulsory local charge that most property owners must pay. The funds collected are used to support services delivered by local councils, such as rubbish collection, keeping libraries open, funding the police and fire services, and general highway maintenance, to name a few.
Monthly payments are worked out according to a banding system, which ranges from A to H in England and Scotland, or A to I in Wales. Generally, households with two or more adults will not qualify for any reduction on this charge.
Residents may qualify for a discount on their tax bill if they meet certain conditions, including their living arrangements and household income. In some instances, households might secure a 25% reduction on the monthly cost, whilst particular circumstances could make someone eligible for the entire fee to be waived.
Martin Lewis’ MSE team has released a guide that broadly categorises these discounts into three distinct groups. Understanding your entitlement to a better deal could help families save hundreds or even thousands of pounds annually.
Council tax discounts based on who you live with:
In most circumstances, a property with at least two “qualifying” adults (aged 18+) will not receive any reduction to their council tax bill. Where only one adult resides at a property and still meets all other qualifying criteria, they can apply to the local authority for a 25% sole occupancy reduction, alongside proof that they live alone.
In certain circumstances, households may qualify for an enhanced discount if most residents are considered “unqualified” for council tax purposes. Examples include:
- Children – anyone under 18 residing in the property won’t be included in council tax calculations.
- Full-time students – Your course must run for a minimum of one year and require at least 21 study hours weekly to qualify. Full-time student nurses typically qualify for this reduction as well.
- Adults deemed ‘severely mentally impaired’ – This may include people with Alzheimer’s, Parkinson’s, profound learning difficulties, multiple sclerosis or those who’ve suffered a severe stroke. Medical certification of the condition is required, and they must receive at least one qualifying benefit.
- Live-in carers – They’re disregarded if they provide care for someone with a disability who isn’t their partner, spouse or child under 18, averaging a minimum of 35 hours weekly. The person receiving care must also be claiming one of several qualifying benefits.
- Care leavers (young adults) – If you were raised in care and are now transitioning, or have previously transitioned, to independent living, you may qualify for a council tax reduction ranging from 25 to 100% (the exact amount depends on your household composition).
Council tax reductions based on income or benefits:
If you’re on a low income or receiving benefits, such as Universal Credit, your household may be eligible for a Council Tax reduction – which could be up to 100%. Eligibility for a Council Tax reduction isn’t dependent on whether you own your home or rent, or if you’re employed or not.
What you receive 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 receiving the ‘guaranteed’ part of pension credit, your household could qualify for a full reduction on your Council Tax bill of up to 100%.
Council tax reductions based on property type:
If your home has been adapted for a disabled person, and you can demonstrate this, you’ll drop a Council Tax band. If 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 having an extra bathroom or kitchen fitted for a disabled person to use or people who have a room that’s ‘predominantly’ used by a disabled person – such as a downstairs room in a two-storey house that has been converted into an accessible bedroom.
Properties left vacant due to structural repairs or alterations can also be exempt from Council Tax for up to 12 months. Other situations where empty homes are not liable for council tax include times where the occupants are long-term residents of a care home or hospital, in prison (unless locked up for non-payment of Council Tax), or have passed away and the property is awaiting new occupancy or probate to be granted.
People should never presume that a discount has been applied. In nearly all cases, homeowners or tenants will need to actively apply for any kind of discount to be implemented.
Finding out what you are eligible for can help people claim back some cash too as council Tax discounts and reductions can often be backdated, but rules vary by council and your age. People can find out if they are owed any money back by going here.
