The UK's Money Saving Expert team have revealed the five reasons why people may be paying too much council tax, and how they can secure discounts.
Council tax is paid by every eligible household in Scotland, and helps the local authorities provide support for vital services across the community. The Money Saving Expert website reports that some households shouldn't be paying the full amount of council tax for their property.
It can be possible to get anywhere between 25 per cent, to the whole amount - so you'd pay nothing - off your total bill. So, who could be eligible for a council tax discount?
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Disregarded households
You could be due a discount if you or someone in your household is classed as 'disregarded' for council tax purposes. According to the Government website, those who are 'disregarded' include:
- under 18 years old
- on certain apprentice schemes
- 18 or 19 years old and in full-time education
- a full-time student at college or university
- under 25 years old and get funding from the Education and Skills Funding Agency
- a student nurse
- a foreign language assistant registered with the British Council
- severely mentally impaired
- a live-in carer for someone who is not your partner, spouse, or child under 18
- a diplomat
Personal circumstances
Others might qualify for support with their council tax (known as a reduction) because of their personal circumstances. Although discounts and reductions are technically different, you can claim both at the same time if you qualify.
There are a whole list of those who qualify, and these are some of them:
People who live alone (or with under-18s/full-time students)
You can claim the single person discount if you're an adult and live alone, or if you're the only adult in your household (for example, living with under-18s), or if you only live with other adults who are disregarded from council tax (for example, a non-student who lives with full-time students).
This discount is worth 25 per cent off a total bill. Therefore, a £1,000 annual bill would be brought down to £750 a year.
If you live alone and are a full-time student or have a severe mental impairment, the discount could be 100 per cent – meaning you don't pay council tax at all.
People with a 'severe mental impairment'
If you, or a friend/family member, has a 'severe mental impairment' (SMI) you, or they, could be eligible for a discount because they are disregarded from council tax.
For example, this could include somebody who has Alzheimer's, Parkinson's, profound learning difficulties or someone who has had a severe stroke.
To qualify, you/they will need to be both medically certified as having an SMI, and being eligible to qualify for at least one benefit - in Scotland, you don't need to necessarily claim the benefit to get the council tax discount.
In terms of how much the discount is worth, there are a number of factors at play. These include the following:
- Live alone or only with under-18s/full-time students/others with an SMI – then the discount is 100 per cent as all-SMI households, all-student households and under-18s are exempt from paying council tax.
- Live with one or more other adults all of whom are disregarded from council tax – then the discount is 50 per cent on the total bill.
- Live with one other adult who isn't disregarded from council tax – then the discount is 25 per cent on the total bill.
- Live with two or more other adults none of whom are disregarded from council tax – then there is no discount and the household pays the full amount of council tax.
People with an live-in carer
Those with a live-in carer might be able to get a discount, as live-in carers are disregarded from council tax.
To be disregarded, the carer needs to look after someone with a disability who isn't their partner, spouse or child under 18, for an average of at least 35 hours a week. Looking after a family member or friend does count in this circumstance.
The carer must live with the person with the disability, and the person cared for must be getting one of the following benefits:
- Attendance allowance
- Middle or higher rate of the care component of disability living allowance.
- Standard or enhanced rate of the daily living component of personal independence payment.
- An increase in constant attendance allowance.
- An increase in disablement pension.
The carer does not need to be receiving carer's allowance to qualify for the council tax discount. You do not qualify as a live-in carer if you're under 18.
If the household is just the live-in carer and the person they care for, a 25 per cent council tax reduction can be applied to the household. If the live-in carer cares for someone with an SMI, then the reduction is 50 per cent.
If the live-in carer cares for someone who doesn't have an SMI, and one or more other adults – none of whom are disregarded for council tax – also live in the same property, then the full council tax bill is due.
People receiving Pension Credit
If you or your partner are getting the 'guaranteed' part of pension credit, your household could be eligible for a full reduction on your council tax bill. This discount is part of the support scheme for council tax, rather than a regular discount.
If you get the 'savings' part of pension credit, then you might also be eligible for a reduction on your council tax, though this won't be a full reduction and how much you'll get will depend on how much you have in savings.
Depending on your circumstances, you get up to 100 per cent off your council tax bill. If you live with any adults who aren't dependent on you, then the reduction might be less.
For more information on all the different ways you can claim a council tax discount, the Money Saving Expert website has lots of handy guides.
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