Millions on benefits including Universal Credit are missing out on help with key bill
MILLIONS of households on benefits including Universal Credit are missing out on
Almost 2.7million people are failing to claim a huge £3.5billion in council tax support, according to figures from Policy in Practice.
Council tax support is a scheme where those on a low income or benefits can get money off the bill.
You could get a discount of anything up to 100% of your bill through the support.
The unclaimed amount includes almost £1million in pension-age council tax support. The rest is for those of working age.
The average claim for working-age council tax support is £1,464, while the support for pensioners is worth an average of £1,670.
However, many households fail to claim because they simply don’t know it exists.
The support is given out by local councils in England and claiming varies by local authority so will depend on where you live, your income, dependants and other benefits.
Scotland and Wales also have national schemes.
You can find out if you’re eligible by visiting gov.uk/apply-council-tax-reduction.
You just have to enter your postcode and it will redirect you to your council’s website where you can find out more.
The amount of council tax you will get off varies and will likely depend on what band you are in as well.
Council tax bands range from A to H, with A homes paying the least and H the most.
For example, households in Birmingham can apply for Council Tax Support if they receive certain benefits such as Universal Credit or employment support allowance.
The support is calculated as a means-tested discount.
This means the amount each household will have to pay towards their bill will depend on their household circumstances.
Meanwhile, in Manchester, you can claim council tax support when you apply for Universal Credit.
How to check how much council tax you pay
BEFORE you cut your bill it is important to know how much you pay in council tax each year.
You can find your council tax band on GOV.UK for homes in England and Wales.
If you live in Scotland then you can check on the Scottish Assessors website.
You will need to enter your postcode and scroll through the listed addresses to find yours.
Local councils must contact you directly every time your bill is set to go up or down.
They should do this via letter or email.
You can find out which local council is yours on the GOV.UK website.
What other council tax discounts are available?
If you’re not receiving benefits or don’t qualify for your local authority’s low-income council tax support scheme, you may still be eligible for a reduction in your bill due to other circumstances.
For instance, certain pensioners can qualify for a discount of up to 100%.
Meanwhile, individuals who live alone or are full-time students may also benefit from substantial discounts.
Pensioners
Pensioners may also be able to get a council tax discount if they receive certain benefits.
Those on the guarantee credit element of pension credit could get up to 100% off their bill.
If you do not get guaranteed credit but have a low income and less than £16,000 in savings then you may still get some help.
Meanwhile, if you are a pensioner who lives alone then you will qualify for a 25% discount.
Single people
You could get a 25% council tax reduction if you live on your own or if others at home are classed as “disregarded”.
You are disregarded if:
- You are under 18 years old
- On certain apprentice schemes
- 18 or 19 years old and in full-time education
- A full-time student at a university or college
- Under 25 years old and receive funding from the Education and Skills Funding Agency
- A student nurse
- A foreign language assistant who is 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
For example, if a single adult lives with a severely mentally impaired person then they can get 25% off their council tax.
Meanwhile, if you live in an all-student household then you do not need to pay any council tax.
Severe mental impairment
You could apply for a 25% council tax discount if you live with someone who is severely mentally impaired.
To be eligible there must be no other adults in your household or everyone else in your home must have been disregarded.
If you are severely mentally impaired and you live on your own then you may qualify for a 100% discount.
You could also be exempt from paying council tax if any other adults in your household either qualify as severely mentally impaired or are full-time students.
You could also get a 50% discount on your council tax bill if everyone else in your household is disregarded.