MILLIONS of households may be eligible to get their council tax reduced or even free.
It is estimated that £2.9 billion of council tax support is left unclaimed by more than 2.7 million households.
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Many households do not claim the support because they don’t know it exists, and unfortunately, some local authorities may not widely publicise their scheme.
It is also the case that the administrative process involved in making a claim can put some people off and the negative perceptions around claiming benefits may also discourage some.
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 everything you need to know:
Single people
If you are living alone you can get 25% off your council tax bill.
The same applies if there is one adult and one student living together in a property, or if there is one adult and one person classed as severely mentally impaired in the home.
You could be entitled to a larger reduction of up to 50% if you live with someone who doesn’t have to pay council tax, such as a carer or someone who is severely mentally impaired.
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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.
Retirees
Pensioners may also find themselves eligible for a council tax reduction.
If you receive the Guarantee Credit element of Pension Credit, you could get 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 be eligible for some help towards your council tax.
Whether you are eligible will vary depending on where you live.
And if you find yourself struggling to pay your bill, you may also be able to get a deferral or 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.
How to apply for a reduction
You can apply for a reduction through the Government website.
You’ll need to have your national insurance number, bank statements, a recent payslip or letter from the Jobcentre, and a passport or driving licence to hand.
If there are other adults in the household, you might need the same information for them too.
You can check what council tax bracket your home falls in by entering your postcode on the government website.
Check which local authority you live in to find out how much your council changes for each band, as it varies.
You could also potentially get your house re-banded if you think you’re overpaying on council tax.
To do this, 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.
Be warned though – applications are not always successful, and you could even end up being moved to a HIGHER band and paying more.
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