Council tax is rising from April 2026, but people with certain medical conditions including dementia and Alzheimer’s may be able to get a discount of 25% to 100% if they qualify
Council tax is set to rise from April 2026, yet those suffering from certain medical conditions may be exempt from paying it altogether. To be eligible, individuals require a formal diagnosis from a doctor and must also be in receipt of specific benefits.
Those with a medically diagnosed, permanent ‘Severe Mental Impairment’ (SMI), like Dementia or Alzheimer’s, could be entitled to a council tax reduction of anywhere between 25% and 100%, according to the money saving expert Martin Lewis.
The BBC and ITV presenter’s team at Money Saving Expert states: “The SMI Council Tax discount is a reduction of a household’s Council Tax bill, worth, at a minimum, 25%, all the way up to, in some cases, the entire bill being wiped.
“SMI is a medical diagnosis in itself, but the underlying cause could be a condition such as dementia (including Alzheimer’s), profound learning difficulties, multiple sclerosis, the result of a severe stroke or something else.”
Mr Lewis said: “A severe mental impairment – horrible term not mine – is defined as a severe mental impairment of intelligence and social functioning which appears to be permanent. To qualify for a discount, it must be medically certified; you need a doctor to sign.
“And just to be clear, if there are under-18s, full-time students or others with SMI in the household as well, they don’t change the situation above (as they don’t count towards Council Tax either) – so a household where someone with an SMI lives with an under-18 still gets the 100% discount.” For our free daily briefing on the biggest issues facing the nation sign up to the Wales Matters newsletter here.
Medical conditions classified as SMI for council tax exemption include:
Dementia
Alzheimer’s disease Parkinson’s disease
Severe learning difficulties
Multiple sclerosis
Long-lasting effects of a severe stroke
Schizophrenia
Schizoaffective disorder
Other severe, permanent cognitive disorders
Previously in England and Wales, individuals merely needed to be eligible for – rather than actively claiming – the qualifying benefit, but this requirement was altered following a High Court judgment.
