How to get your council tax reduced or even FREE – are you eligible?

HOMEOWNERS worried about paying their council tax bill could be eligible for a discount or even pay nothing at all.

The cost of living crisis has left many struggling with monthly payments, as energy bills and fuel and food costs increasing.

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And Martin Lewis warned yesterday energy bills could rise by another £1,000 a year this winter.

But from rebates to reductions, there are some ways you could cut your council tax bill.

It comes after council tax debts grow larger, with figures showing £4.9billion is now owed by households in England.

The Money Advice Trust, which runs the National Debtline, has now urged the government to change how local authorities collect council tax debt.

Council tax is a bill that you should always try and avoid falling behind with, as the consequences of not paying are the most severe.

Council tax is considered a priority bill, as not paying it can result in, bailiffs, court action or even imprisonment in the worst case.

If you miss a payment, you can be asked to pay the entire year’s bill upfront.

Many people may not realise they’re eligible for a reduction, or could even get the balance paid off in full.

If you’re a low income household, or receiving benefits such as Universal Credit, you could get up to 100% off your council tax bill.

On top of this, households in the majority of homes in England are set to get a £150 rebate on their council tax as part of government measures to tackle the cost of living crisis.

What support you can get depends on your circumstances and where you live, as each council decides what help to offer those in its area.

Factors that will determine how much of a discount you can get include your household income, whether you have children, and if you receive any benefits.

Here’s what you need to know:

The council tax rebate

The government announced council tax help in February in the form of a £150 rebate.

It will be given to households in council tax bands A – D, which means 80% of homes in England.

If you don’t know what council tax band you are in, the government’s website has a useful tool. You just need to enter your postcode.

Eligible council tax payers will get the money sent to their bank account rather than as a discount.

If you don’t already pay your council tax bill by direct debit, your local council will contact you to get your bank account details so it can give you the cash.

Payments started to be made from April 1, however the exact date you will receive yours will depend on your local authority.

Single people

If you live on your own, you’re entitled to 25% off your council tax bill.

This also is the case if there is one adult and one student living together in a household.

You may also qualify if there is one adult and one person classed as severely mentally impaired in the home.

If you live with someone who doesn’t have to pay council tax, such as a carer or someone who is severely mentally impaired, you could get a 50% reduction.

And, if you live in an all-student household, you could get a 100% discount.

A full list of circumstances that exempt you from paying council tax can be found on Citizens Advice‘s website.

Retirees

Pensioners may also find themselves eligible for a council tax reduction.

If you receive the Guarantee Credit element of Pension Credit, you could even be in line for a 100% discount.

If not, you could still get help if you have a low income and less than £16,000 in savings.

And a pensioner who lives alone will be entitled to a 25% discount too.

Low Income households

If you are on a low income or receiving benefits, you could eligible for a reduction on your council tax.

The requirements to get help will vary depending on where you live.

You could also get a deferral if you’re struggling to pay your bill, or you can speak to your council about setting up a payment plan to manage the cost.

But one thing to remember is if you are struggling you should contact your council as early as you can.

Council tax is a priority bill and if you fall behind you could be asked to pay the full year’s balance in one go.

And non-payment could result in bailiffs, court action or even imprisonment.

How to apply for a reduction

You can apply for a reduction through the government website.

You’ll need your national insurance number, bank statements, a recent payslip or letter from the Jobcentre, and a passport or driving licence when filling out the details.

If you are not sure which local authority you live in, you can check the government’s council locator to find out.

And there’s also the option of getting your house re-banded if you think you’re overpaying on council tax.

This is because those outside of council tax bands A to D are not eligible for the £150 rebate.

To get your house re-banded, you’ll need to check which band your neighbours are in and work out how much your property was worth in 1991, as this is when council tax bands were decided.

MoneySavingExpert has a free calculator tool to help you do this.

But be wary, as you are not guaranteed success with applications, and you could even end up being moved to a HIGHER band, where you will end up paying more.

This post first appeared on thesun.co.uk