How to get your council tax reduced or even free as bills soar – check if you’re eligible
MILLIONS of households face council tax bills soaring above £2,000 for the first time this year – but there’s help available.
Local authorities were given the green light in last year’s Autumn Statement to raise the levy by as much as 5% from this month.
Annual council tax bills in England will rise by an average of 5.1%, according to government figures released in March.
The average bill will be £2,065 in 2023-24 – an increase of £99 on the previous year.
The biggest annual percentage rise will be in London, where bills for an average band D property will increase by 6.2%.
It would be a bitter blow for families already struggling to pay the bill – figures from the end of March 2022 showed the amount of council tax debt owed by households across the country stood at £4.9billion.
But many people may not realise they’re eligible for a reduction, or could even get the balance paid off in full.
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 is how you could cut your council tax bill.
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 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.
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.
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.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk