Households in the UK are saving billions of pounds collectively on council tax through the Government’s reduction scheme
In Scotland alone, households have benefited by more than £4.1 billion since the scheme was introduced in 2013, the Scottish Government says.
The means-tested scheme replaced council tax benefit and saves recipients an average of £850 a year.
An estimated £3.4billion in support went unclaimed as of April 2024, according to research by Policy in Practice. This highlights the urgency of claiming available aid, especially with bills expected to rise by as much as 5% in April.
Finance Secretary Shona Robison urged households to check if they are eligible for a discount, stating: “The council tax reduction scheme is just one of the groundbreaking initiatives introduced. I urge people to check their eligibility for council tax reduction, council tax discounts and other financial support by contacting their local council.”
Council tax discounts
Council tax is a mandatory charge for individuals aged 18 and older, with the bill calculated based on at least two adults residing in a property. Spouses and partners who live together are jointly responsible for paying the bill.
However, certain individuals may qualify for discounts or exemptions based on their circumstances.
Some people are classified as ‘disregarded’ when determining how many adults live in a property. This classification can make households eligible for discounts if they either live with someone disregarded or if all residents fall into this category.
According to GOV.UK, people are disregarded if they are:
- Under 18 years old
- On certain apprentice schemes
- Aged 18 or 19 and in full-time education
- Full-time students at college or university
- Under 25 and receiving funding from the Education and Skills Funding Agency
- Student nurses
- Foreign language assistants registered with the British Council
- Severely mentally impaired
- Live-in carers for someone who is not their partner, spouse, or child under 18
- Diplomats.
Households can benefit from various discounts depending on their situation. A single-person discount of 25% applies if only one adult lives in the property.
If a household has more than one resident, but all except one are disregarded, they may also receive a 25% discount. A 50% discount applies if all residents are classified as disregarded.
If the property has been adapted for someone with a physical disability, the council tax bill may also be reduced. Additionally, people on low incomes or specific benefits, such as the Guarantee element of Pension Credit, might qualify for further help through the Council Tax Reduction scheme.
This scheme, run by individual councils, can offer reductions ranging from a small percentage to covering the full cost of the bill, depending on factors such as income, savings, and household composition.
To apply for any council tax discount or reduction, individuals must actively contact their local council.
Since each council operates its own system, the application process may vary. A helpful starting point is the Government’s online tool, where residents can check their local council by entering their postcode.
