HOUSEHOLDS in more than 100 areas of the UK will see their council tax bill rise to over £2,000 a year from next week, new figures reveal.
For some bill payers, it means the tax hikes will push up costs to 11 times the rate of inflation.
1
The tax hikes come into effect from April, meaning millions of households will see bills go up from next week.
On average, bills for typical Band D properties will rise by £80 to £1,898 a year, according to the latest figures from the Ministry for Housing, Communities and Local Government (MHCLG).
The rise is equal to 4.4%, while the the current rate of inflation is only 0.4%, ONS data revealed this week.
It comes at a time when families are already dealing with the devastating impact of the coronavirus crisis on their household income.
What help is available if you’re struggling to pay your council tax?
IF you are over the age of 18 and either own or rent your own home, you must pay council tax.
But there is help available if you’re struggling to pay your bill.
You get 25% off if:
You live on your own.
You also qualify for this discount if there is one adult and one student, or one adult and one person who is classed as severely mentally impaired.
You get 50% off if:
When working out how many people live in a property, some people are not counted – they are called “disregarded people”.
You can get a 50% discount if everyone in your home is “disregarded” from paying council tax.
For example, if there is a live-in carer and one person who is severely mentally impaired.
Check out the Citizens Advicewebsite for a full list.
You get 100% off if:
You’re living in an all-student household, or if you have a severe mental impairment and live alone or with a student.
A full reduction is also possible in households where someone under 18 is living with someone who is severely mentally impaired.
Claim benefits?
You could be entitled to a 100% reduction on your council tax bill if you receive certain benefits.
Check with your local council to see what help you can offer.
Own a second home?
You’ll usually have to pay council tax on an empty home.
But councils can give furnished second homes or holiday homes a discount of up to 50%.
Talk to your local authority to see what help they can offer.
Is there help during the coronavirus crisis?
Struggling households can also get their council tax bills reduced by up to £150 this year due to the coronavirus crisis.
The council tax hardship fund, which was first announced in March, is available to working-age people who get council tax support.
This is a benefit to help people who are on a low income or claiming certain benefits to pay their council tax bill.
Can I pause my payments?
A new scheme is launching this year that will see struggling households pause their payments for 60 days.
First announced in June 2019, the breathing space scheme will protect hard-up Brits from bailiffs and prosecution for two months.
The scheme won’t come into force until May 4, 2021.
Overall, 104 districts will charge more than £2,000 a year, up from just 36 last year.
Residents in Nottingham will be forking out the most on the tax, which will be set at £2,226 for the year – a rise of £107.
Meanwhile, residents in Dorset will see bills rise by £4 over the year to £2,223. But in Rutland, the tax will go up by £70 a year to £2,195.
The Treasury gave the green light for the tax hike in last year’s spending review, with the extra cash raised earmarked to pay for rising police and social care costs.
Over half of households are in for the maximum council tax rise, according to research from the Local Government Chronicle.
Harry Fone, from the TaxPayers’ Alliance, said: “These punishing hikes will hit residents hard.
“Crushing council tax bills are the last thing taxpayers need as we emerge from the coronavirus crisis, which has put real pressure on household budgets.”
An MHCLG spokesperson said: “Councils are and have always been responsible for setting council tax levels.
“We set referendum principles to ensure that local people have the final say over any excessive increases.”
Below, we explain how to check if your council tax bill is going up and by how much.
How to check your council tax bill
You’ll first need to find out what council tax band your home is in to work out how much you have to pay.
This can be done on Gov.uk for homes in England an Wales, or on the Scottish Assessors website if you live in Scotland.
You’ll need to enter in your postcode and scroll through the listed addresses to find yours.
Local councils must contact you directly to let you know if your bill is going up or down, for example, via a letter or email.
If you still haven’t heard from your council, you should contact them directly.
The contact details of your local council can be found on the Gov.uk postcode checker.
Alternatively, you can search for your local authority on a spreadsheet of all council tax bill rises published by MHCLG.
What if I’m paying more than I think I should be?
You might find that you’re already paying more for your council tax anyway even before a tax hike, according to Martin Lewis.
The MoneySavingExpert founder urged Brits to check their council tax band last month to see if they’ve been paying more than they should be.
As many as 400,000 homes are potentially in the wrong council tax band.
Martin tweeted a guide on how to check if you’re paying the right amount.
The first step is to check what council tax band your neighbours are on – you can then see if it matches your band.
Finally, you’ll also need to work out how much your property was worth in 1991, as this is when council tax was launched by the government.
MoneySavingExpert has a free calculator tool to help you do this, as well as a table on what band you should have been put in.
PAY BACK
Argos to refund over £500,000 to 114,000 customers who bought extended warranties
FAIRER DEAL
Over 44,000 Asda workers one-step closer to claiming equal pay discrimination
DRINK UP
The pubs NOT planning to impose vaccine passport rules on customers
BACK IN BUSINESS
Full list of businesses to reopen on Monday including outdoor pools
SHOP TIL YOU DROP
When can non-essential shops open in England?
If you want to go ahead with a challenge, you can contact the Valuation Office Agency (VOA) in England and Wales or the Scottish Assessors Association (SAA) in Scotland.
Here’s how to get help paying your energy bills as snow hits – and save over £1,000.
While Brits stay at home to stop the spread of Covid, we reveal 11 steps to transform your finances while in lockdown.
Brits ‘set to be hit by huge tax rises to pay for Covid spending’
