Martin Lewis has shared a new video on social media urging “hundreds of thousands of people” in Scotland, England and Wales to check for a discount on their Council Tax bill for the new 2023/24 financial year which could also result in backdated payments worth “thousands of pounds”.
The founder of MoneysSavingExpert.com (MSE.com) explained how Council Tax bills are not calculated by the value of your home, it’s also about who lives there - and some occupants may not have to pay any money at all. He then went on to explain how local authorities across Great Britain define “qualifying adults” which in turn, determines how much Council Tax people living in a household will pay.
Martin said: “If there are two or more qualifying adults in the house, you pay the full Council Tax. If there’s only one qualifying adult in the house living with other people who aren’t qualifying adults, then you get the single-person 25 per cent discount.”
The financial journalist continued: “If there are no qualifying adults - which isn’t the same as unoccupied - such as an all-student household, does not pay Council Tax.”
He clarified that as long as students are full-time - studying for at least 21 hours per week for one year - they should not be paying any Council Tax.
Who is considered to be a qualifying adult?
Martin also simplified the complexities around ‘who is a qualifying adult?’. But don’t worry if you’re already confused, MSE.com has a brilliant chart which simplifies understanding who should pay Council Tax, with different examples of mixed households - you can view this here.
He said: “If you’re aged 17-years-old or younger, you’re not a qualifying adult and don’t count towards the numbers for Council Tax purposes. Full-time students on a course that lasts at least one year and you do 21 hours a week of study.”
Martin also clarified that students who only attend classes or lectures for a few hours per week should still qualify as there is an expectation that they will do more self-study hours at home. He added that some student nurses will also qualify and a few people on apprenticeships.
Severe Mental Impairment (SMI)
Martin explained this category would include people with severe dementia, Alzheimers’, severe strokes, even severe Parkinson’s, saying there’s a whole range of conditions that could be called an SMI.
He also shared two eligibility tests these groups of people must pass:
- You must be certified by your doctor that you have a severe impairment of intelligence and social functioning that appears to be permanent
- You also need to be in receipt of a qualifying benefit, but in Scotland you only need to be eligible for the qualifying benefit and not necessarily receiving it
Martin explained how this includes means-tested and disability benefits. He said: “If you’re looking at the SMI discount and this is where we get many of the big, backdated payouts, read the full step-by-step guide we have on MoneySavingExpert.com.”
Martin also said that Ukranian refugees also do not count as a qualifying adult. Martin’s message is simple - checking if you are eligible for a Council Tax discount could result in your payments being lowered “substantially going forward”, but you could also be due a “backdated payout from when you were eligible which may be worth thousands of pounds”.
You can view the video and read the full guide to discount on MSE.com here. Below is our quick guide on how to check your Council Tax bill and a list of circumstances which could see you paying less each month.
How is Council Tax worked out?
How much Council Tax you pay depends on your local authority, which sets an overall amount each year and assigns a ‘band’ to your home, based on its value - it’s isn’t banded by its current market value, but what it was worth on April 1, 1991 - the date Council Tax was introduced.
Council Tax bands range from A to H. A is the lowest band with the lowest charges and H has the highest charges.
Band A - Up to £27,000
Band B - Over £27,000 and up to £35,000
Band C - Over £35,000 and up to £45,000
Band D - Over £45,000 and up to £58,000
Band E - Over £58,000 and up to £80,000
Band F - Over £80,000 and up to £106,000
Band G - Over £106,000 and up to £212,000
Band H - Over £212,000
Your bill also takes into consideration whether or not you are eligible for a reduction or exemption.
How to check your Council Tax band
The band of every property in Scotland is available to check online here.
Could you be exempt from paying Council Tax?
You will not pay Council Tax if:
You are a full-time student
You are in the Armed Forces in Forces accommodation
You live in a care home or hospital
Your home is unoccupied and empty (up to six months) - for example, if you’ve gone into hospital
You have a severe mental impairment (e.g. dementia) - if you only live with someone who has dementia, then you’ll be treated as a sole occupant as they will be disregarded, but you won’t both be exempt
Contact your local authority about your eligibility and how you can apply for an exemption - a link to all 32 local authorities in Scotland is at the bottom of the page.
Could you be eligible for a discount on your Council Tax bill?
There are some circumstances where you may get a reduction on your Council Tax and the amount of discount varies depending on your circumstances.
If you live alone
The full Council Tax is calculated assuming there are two or more people living in each home – if you live alone, you should apply to your local council for a discount - you could get a 25 per cent reduction, regardless of your financial circumstances.
If you live with someone under 18 or a student
Council Tax is not calculated for anyone aged under 18, full-time students, student nurses and some apprentices or trainees.
If you are a carer
Carers who look after someone in the household for at least 35 hours per week and who meet additional criteria may be disregarded for Council Tax purposes, contact your local authority for their eligibility criteria.
Just be aware, this doesn’t apply if the person receiving care is the partner of the carer, or is the carer’s child aged under 18.
If there are major changes to the value of your home
You may be able to get your home moved to a lower band if it has decreased in value. For example, if you have made home adaptations for a disabled person, or if a motorway has been built nearby.
You may also get the band lowered if a room in the house is dedicated to equipment used by a disabled person on a daily basis.
If you change the way you pay
Although the total year’s amount will stay the same, you can request that your bill be split over 12 months instead of 10, so that you can spread the cost and reduce your monthly outgoings.
Alternatively, if you can afford to pay the whole bill in one lump sum, check with your local council if you can get a discount.
Apply for Council Tax support
You may be eligible to claim council tax support, sometimes called Council Tax Reduction, if you’re on a low income or claiming certain benefits.
You can also claim Council Tax support regardless of whether you own your own home or rent, or whether you’re working or unemployed.
Each local council is responsible for operating their own Council Tax support scheme, so the amount of support given across the country may vary.
The amount you will get depends on many factors, including:
Which benefits you receive
Your age
Your income
Your savings
Who you live with
How much council tax you pay
You may get more Council Tax support if you receive a disability or carers benefit.
If you receive the Guarantee Credit Part of Pension Credit you may even get your council tax paid in full. If you don’t have it, but are on a low income and have less than £16,000 in savings, you may still get some help.
To keep up to date with the latest cost of living news, join our Money Saving Scotland Facebook page here, follow us on Twitter @Record_Money, or subscribe to our newsletter which goes out Monday to Friday - sign up here.
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