Thousands face ‘devastating’ council tax hike of 21% from April – check how much yours will go up by & how to get help

THOUSANDS are facing a huge council tax hike from April, a move that’s been branded “devastating”.

Birmingham City Council has approved plans to hike council tax by 21% over the next two years.

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The local authority has now approved a 9.99% rise in council tax and a budget containing plans for “unprecedented” cuts to services.

It will see annual bills for an average Band D property rise to £1,793.

Budget papers published last month confirmed the council was planning to raise council tax by 9.99% this year and next – a cumulative rise of around 21%.

It comes after the Labour-run council declared itself effectively bankrupt in September last year, and is now said to be on a “narrow path to financial sustainability“, dependent on budget cuts.

Commenting on the confirmation, workers’ union Unite described the measures as “devastating”.

Its national officer for local authorities Clare Keogh said: “These cuts are devastating for Birmingham council’s workers and the entire city.

“Vital public services are on the brink of being all but destroyed.”

It comes after a handful of councils were given the green light to raise the levy by as much 10% – more than the typical 5%.

Last month, the government confirmed that most local authorities will be able to hike the essential bill by 5%.

This equates to £103 extra a year for the typical Band D property, which is currently £2,065.

But four councils were handed special permission to hike bills by as much as 10%: Thurrock, Woking, Slough and Birmingham.

This could see the same annual bill increase by £206.50.

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The national limit on how much council tax can be raised is set by the government every year, this is then applied to bills from April.

It’s then up to each local authority to decide if it will choose the maximum and some may decide to increase council tax by less.

It’s important to bear in mind that each council sets their own rates and that what residents actually pay is determined by your council tax band.

Bands are based on your home’s value – the more expensive the property, the more council tax will be charged.

Councils are due to confirm by how much council tax bills will rise by in the coming weeks – including those allowed to hike them by a higher percentage.

Check how much your council tax bill will go up by

Keep an eye on your council’s website for information on its budget plans for the 2024/25 financial year – which will include information on any rate hikes.

Check which council tax band your property falls under to work out how much the increase will cost you.

You can find your local authority by using the gov.uk search tool.

You’ll then be sent a council tax bill in April outlining how much you need to pay.

Residents can choose to make payments over 10 months.

You can also opt to pay instalments over 12 months if you prefer.

What support is available?

Council tax discounts

There are several discounts you could get – but they will vary depending on your circumstances.

Factors such as your household income, whether you have children, and if you receive any benefits, will influence what you get.

To apply for any of the below discounts, go 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.

Single people

If you live on your own, you can get 25% off your council tax bill.

This also 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.

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 larger reduction too, of up to 50%.

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 a reduction on your council tax.

Whether you are eligible 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.

You can challenge your council tax band

You might be able to reduce the amount of council tax you pay by challenging your band.

Properties across the UK are put into a band from A to H, and this informs how much council tax you pay.

The bands were created based on property values back in 1991, so many households may find that based on today’s prices, they should be in a different band.

It’s worth checking yours to see if you could get a discount.

First, you need to find out what band you are in.

You can find this out by checking with your local authority or on the postcode checker.

Use the council tax band checker tool to see which band properties along your street are in.

If they are in a lower band than you are, you could successfully make a challenge and get yours lowered.

How do I challenge it?

Contact the Valuation Office Agency (VOA) in England and Wales or the Scottish Assessors Association (SAA) in Scotland to do this.

Gather together evidence showing you’re paying more – this could be having addresses of similar properties to yours in a lower band, for example.

If the VOA agrees that your property is in the wrong band, it will contact you to let you know your band will be changed.

It can take up to two months for the VOA to review your case.

But be warned – challenging your band might not work.

While you could get moved to a lower band and pay less, there’s also the chance the VOA could find you’re not paying enough.

This could mean you’re moved to a higher band – and your neighbours’ too.

If you disagree with the VOA’s ruling, you can appeal your case – but only if you’ve been told that you can when you get the decision.

You must appeal within three months of your decision – to do this, get in touch with the Valuation Tribunal Service.

If the Valuation Tribunal agrees with you, it will get the VOA to change your band – and your bill will change.

Other council tax bill help

If you’re not eligible for a council tax discount – or you can’t move bands – there are other ways to get help.

Section 13A relief

You can make an application for what is called “discretionary relief” for your council tax bill by filling out a Section 13A application.

This means councils can reduce or completely wipe off a council tax debt you might have.

A previous Sun investigation found that councils have been wiping clean a record level of council tax debt in recent years over the Covid pandemic.

Nearly £2.7million worth of council tax debts was scrapped by local authorities over 2020/21.

Ask your council for the Section 13A form.

Once you’ve sent your Section 13A application over to your local authority, you should be told about a decision within 14 days.

Check if you’ve overpaid

Thousands of homeowners have moved house and are unaware they are still paying council tax bills.

Back in 2022, a whopping £33.7million was sitting in closed or dormant council tax accounts, according to data analysed by The Sun.

The highest amount owed back was £27,150 to one household from St Alban’s Council.

Larger councils are likely to have a higher amount of unclaimed credit because of the higher number of people living in their catchment areas.

Contact your council if you think you’re owed.

Many authorities have different procedures when it comes to dishing out refunds.

While some give them out automatically usually, in some cases you have to apply for a refund.

Do you have a money problem that needs sorting? Get in touch by emailing [email protected].

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories.

This post first appeared on thesun.co.uk