Brits claiming five specific benefits may also be eligible for a council tax discount. It’s advisable to check with your local authority to determine whether you can obtain a reduction on your payments.
Council tax is set by your local authority and funds services including waste collection and highway maintenance.
The sum you’re liable for depends on your property’s valuation band and the council district where you reside. Nevertheless, not everyone must pay the complete amount.
Citizens Advice explains that certain individuals are entitled to what’s known as council tax reduction (CTR). This is available to those with low incomes or who receive benefits.
Citizens Advice explains: “If you’re on a low income you might be able to get your council tax reduced. If you get benefits or have other people living with you, this might affect how much your council tax is reduced by.
“Your local council will ask you details about your income and your circumstances, so they can work out if you’re entitled to council tax reduction (CTR). They will then work out your new bill and tell you how much council tax you need to pay.
“If you have other people living with you who are aged 18 or over, you might all be responsible for paying council tax. Only one of you needs to apply for CTR.”
It’s essential to note that if you’re awarded CTR, you typically won’t receive a direct payment.
Rather, the council will reduce the council tax amount you’re required to pay. There are two types of Council Tax Reduction (CTR) – for those of working age and those of State Pension age – with the criteria for the former differing from council to council.
To find out if you’re eligible for a reduction, it’s best to check with your local council. However, Citizens Advice suggests that you might qualify for CTR if you’re responsible for the council tax bill and receive:
- Guarantee credit as part of Pension Credit, either alone or with savings credit
- Universal Credit
- Income Support, income-based Jobseeker’s Allowance, or income-related Employment Support Allowance, which qualifies you for maximum council tax reduction minus any non-dependent deduction
If you live with another adult who isn’t your partner, your maximum council tax reduction might be lower due to the expectation that they’ll contribute to the bill, known as a ‘non-dependent deduction’. Even if you don’t receive these benefits, you can still apply for CTR if you have a low income and less than £16,000 in capital.
Additionally, you may be eligible for a 25% discount on your council tax bill if you:
- Live alone
- Or, everyone else in your home is “disregarded”
Those considered “disregarded” include people under 18, apprentices, full-time students at college or university, student nurses, foreign language assistants registered with the British Council, those severely mentally impaired, live-in carers for someone who isn’t your partner, spouse, or child under 18, and diplomats.
For further details, visit the Government website or contact your local council.