Martin Lewis urges millions of people to check for £1,500 annual Council Tax reduction
Martin Lewis has pulled out all the stops to help millions of people across the country save money on their Council Tax bills. In a special edition of The Martin Lewis Money Show Live on STV, the consumer champion spent most of the hour-long programme explaining the different ways people may be due a discount, reduction and even back payments on their Council Tax.
The financial guru shared a step-by-step guide on how to ‘check and challenge’ your Council Tax band if you think you’re in the wrong one, which can also be found in this week’s MoneySavingExpert (MSE.com) newsletter. However, he also highlighted how an estimated 2.25million people on benefits are missing out on Council Tax savings of up to £1,500 each year.
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Martin Lewis used a handy graphic to explain that “your full Council Tax bill is based on two or more adults living in the property”. He added: “If you don’t have that, and there are various reasons you may not have that then you may be able to pay less.”
He told viewers that if you are over 18 then you are classed as an adult and will be counted towards the bill. However, those under-18, or in full time higher education on a course for at least a year, or living with a severe mental impairment such as dementia, Alzheimer’s or Parkinson’s, do not count towards the Council Tax bill and are eligible for a discount.
Martin reminded people living on their own that they are entitled to a 25 per cent discount on their annual bill.
Then he turned to the “big one”.
He explained that there is Council Tax support worth up to £1,500 a year “missed by possibly 2.25m people”.
Martin continued: “It’s run council by council and it’s for people on low incomes and it can cut your Council Tax bill - in some cases - up to 100 per cent, but even if not, 50 per cent is still a lot. It often applies to people on means-tested benefits such as Universal Credit and Pension Credit.”
He explained how people on these benefits often mistakenly believe that they’ll automatically qualify for “everything that’s coming to them” but you don’t.
“Council Tax benefit, even if you’re on Universal Credit, you must apply separately to your council to get it and that is why so many are missing out,” Martin warned.
He added: “If you are on a lower income, look at your council’s policy and see if you can apply to get this money - it’s crucially important.”
Martin also said that people who have had to adapt their property for someone with a disability may be able to drop a Council Tax band.
Martin also explained that 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 isn’t banded by its current market value, but what it was worth on April 1, 1991 - the date Council Tax was introduced.
He added that the band valuation has not been done in Scotland and England since that date which is why “so many people may well be in the wrong band”.
Martin then explained two checks which may indicate that someone is in the wrong band - the neighbours check and the valuation check.
The neighbours check
This is where you have to compare your house to neighbours, in similar, or preferably identical properties, to see if you’re in a higher band.
You don’t have to ask your neighbours which Council tax band they’re on, just go to the Scottish Assessors Authority (SAA) website here, where you can see yours and your neighbours' addresses.
If that check shows you’re in too high a band, move to the next step, the ‘valuation check’.
The valuation check
This is where you have to work out what your house was worth in 1991 because that’s what decides the bands.
To do it, you’ve got to take a valuation of your house, or a similar house and then convert it back through a house calculator - there are free tools online that will do this for you.
There are eight Council Tax valuation bands in Scotland, from A to H. Band A is the lowest, while band H is the most expensive.
The valuation Council Tax band ranges can be found on the SAA website here.
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
Martin stressed how the checking process before going ahead and challenging your local council is the most important bit. he also warned people not to begin the challenge process unless you pass both of these checks.
The full step-by-step guide on challenging your Council Tax band and more information on discounts and reductions available can be found on MSE.com here.
You can also catch up with The Martin Lewis Show on the STV Player.
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.
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.
Local councils
Contact your local council from the list below to apply for a Council Tax Reduction or discount.
