The amount you pay in council tax varies depending on your area, your property, and who else you live with. While this is supposed to make the levy more appropriate for your situation, it can still be a burden if you have a low income. Fortunately, there is help available.
Here, we explain what to do if you can’t afford council tax, and what reductions are available.
What should I do if I can’t pay my council tax?
“If you’re struggling to pay for your council tax – or simply cannot afford to pay it at all – then it’s really important that you speak to your local authority as soon as you can,” advises Liz Hunter, director at comparison website Money Expert.
“If you do nothing and end up missing your council tax payments, councils will send reminder notices and give you seven days to pay the monthly amount. If payment is not made within these seven days, you will have to pay the full amount of council tax required for the whole year instead.”
If you let your council know that you are struggling, they may be able to help you get a discount, or even apply a discretionary reduction of up to 100 per cent.
How do I get a council tax reduction (CTR) for low income?
The good news is that when you’re on a low income, you might be able to get a council tax reduction (CTR) to reflect your situation. The bad news is that each council can set its own rules for these, so you will need to get in touch with them to find out whether they apply to you.
In general, a CTR might be on the table if you receive an income-related benefit such as universal credit, income-based jobseeker’s allowance, or income-related employment and support allowance.
There are usually different rules depending on whether you’re of working age, or have reached state pension age.
To apply, you need to contact your local council. You can find your local council’s website by searching your postcode on the Government website.
“Bear in mind that you’ll need to show your council evidence of your individual circumstances,” Ms Hunter says. “They’ll need to know where you live, your household income (including savings and pensions), who you live with and whether you have any children.”
Am I entitled to a council tax exemption?
Before applying for a reduction on your council tax bill, it is always worth checking that you’re being charged the correct amount to begin with.
People living alone are entitled to a 25 per cent reduction to their bill, known as the single-person discount. This also applies if you are the only eligible person in a household living with people who are “disregarded” for the purposes of the tax.
Disregarded people include children and most people studying full-time or on a recognised scheme. Someone who is severely mentally impaired is disregarded, as are live-in carers. Check the full list online.
If everyone in your house, including yourself, is disregarded, you should get a 50 per cent reduction. For homes where everyone is a full-time student, no council tax is due.
If you have a disability, you can usually get your bill reduced to the next lowest council tax band. This reflects that some people live in larger houses than they might otherwise due to their needs. You’ll have to show you either have an extra room to accommodate a disability, or that you have extra space inside to fit a wheelchair.
