Council tax explained: Who is eligible for a reduction on their bill?

Martin Lewis lays out when to expect £150 council tax refund

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There is no set amount of how much someone can save as it depends on each circumstances and where someone lives. As the cost of living crisis continues, getting money off a bill could be vital for families on low incomes who are struggling to keep up.

The amount of reduction people get depends on many factors, including which benefits they receive, their age, their income, their savings, who they live with and how much council tax they pay.

People can check to see if they can claim a discount automatically by entering their local council details on the GOV.UK website.

Britons receiving a disability or carers benefit may be eligible for council tax reductions.

Additionally, if someone receives the Guarantee Credit part of Pension Credit they may even get their council tax paid in full

If someone doesn’t get Guarantee Credit but they have a low income and less than £16,000 in savings, they may still get some help.

If they are not over state pension age, the council tax support they’re entitled to is worked out under ‘working age scheme’ rules. If they’ve reached state pension age, it depends if they or their partner get certain benefits.

The working age rules still apply when someone has reached state pension age and they or their partner get:

  • Universal Credit
  • Income-based Jobseeker’s Allowance (JSA)
  • Income-related Employment and Support Allowance (ESA)
  • Income Support

Britons should check these rules with their local council.

Additionally people might be able to apply for a council tax discount or exemption if they or someone they live with is disabled.

As well as council tax reductions there are other exemptions and discounts that might apply.

People might be able to get money off your council tax bill if:

  • They live alone
  • They are a carer
  • They or someone they live with has a severe mental impairment, such as dementia or a learning difficulty
  • There are adaptations in their home that make it suitable for someone with a disability who lives there
  • They have another person living with them who isn’t their partner and is on a low income
  • Their property is empty – for example, they’ve gone into hospital or moved into a care home
  • Where they’re living isn’t their main residence
  • There’s an issue, such as a flood, which may be covered by a discretionary discount offered by some councils.

Adults living alone can get a 25 percent discount on their council tax bill.

When it comes to tax, some people are not counted when determining how many people live in a property.

These individuals are known as “disregarded people” and include students, diplomats, apprentices and carers.

However, if everyone in the household comes under the “disregarded people” banner, the property will receive a 50 percent discount.

More information on who can get a reduction can be found on the Government website.

Additionally Britons might also be eligible for a council tax rebate. The Government announced the rebate to help households deal with rising energy costs.

Depending on the council tax band of someone’s property, they may be entitled to a £150 payment from their local council that doesn’t need to be paid back.

Britons will be eligible if their property is in council tax bands A to D.

Those who pay their council tax bill by direct debit should get this automatically. If people don’t pay their council tax bill by direct debit but they’re eligible, they’ll have to make a claim.

Around 90 percent of eligible households have received the Government’s £150 council tax rebate to help with the cost of living.

Households have until the end of September to claim the £150 payment.

Anyone who is yet to receive their rebate is urged to check their local council website for more information and make a claim.

An extra £144million has also be given to councils to provide discretionary support to any household in financial need due to rising energy bills, including people on low incomes in council tax bands E to H.

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