Check for Council Tax help before new higher payments start next month

Scots struggling with Council Tax payments are being urged to get help ahead of the payments rising next month. Advice Direct Scotland, which runs the free moneyadvice.scot service, has seen a surge in people seeking financial support after falling into arrears.

The charity expects even more people to come forward as councils across Scotland confirmed Council Tax hikes from April, piling further pressure on families. Most people can expect to receive their 2025/26 Council Tax bill in the post or in their inbox now that all 32 local authorities have published their new rates.

In recent months, Advice Direct Scotland said it has helped people manage Council Tax debts ranging from £1,500 to £3,000. The charity also supported one person who faced a £15,000 arrears bill that had built up over six years.

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Another case involved a mother whose wages were arrested to pay off a £1,800 Council Tax bill, while she was also struggling with £12,000 in total debt due to a deepening gambling addiction.

Council tax arrears are classed as a ‘priority debt’, which means they must be addressed before other debts to avoid harsher enforcement measures, such as bank or wage arresstment. Councils can seize benefits and take other actions to recover the owed payments, risking the loss of homes or tenancy agreements if left unresolved.

Advice Direct Scotland is urging anyone who has missed a payment to contact their council immediately and request to pay in smaller amounts, rather than waiting to be contacted - or have their account passed to a debt collection agency.

The charity is also reminding people on low incomes to check if they qualify for a reduction on their Council Tax bill. For free expert support, moneyadvice.scot, which is regulated by the Financial Conduct Authority, can help assess finances, negotiate payment plans, and pause enforcement - experts can be reached online here or over the phone on 0808 196 2316.

John Baird, head of debt services with Advice Direct Scotland, said: “The looming Council Tax increases will heap even more pressure on individuals and families who are already struggling with rising energy bills and the cost-of-living crisis.

“It’s heartbreaking to see people distressed over council tax debts. We’ve seen a growing demand for our services and expect even more inquiries when the new financial year starts in April.

“We understand that receiving Council Tax letters when you’re already worried about money can create more anxiety. But it’s important not to bury your head in the sand - you should take action now. With the right support, people can manage their debts more effectively and avoid the serious consequences of falling behind on payments.”

People on a low income, student households and those with a disability or caring responsibilities may be unaware of the Council Tax Reduction scheme, which is only available north of the border.

The latest figures from the Scottish Government show 458,470 recipients were eligible for Council Tax Reduction in December 2024, saving an average of over £850 a year.

People can check whether they are eligible for a Council Tax Reduction through mygov.scot or by contacting their local council.

Below is everything you need to know about who might be eligible for a Council Tax saving.

Check if you could 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 this 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 your bill be split over 12 months instead of 10, so 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 Reduction

You may be eligible to claim a 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.