Council Tax discounts based on who you live with. First, we’re focusing on discounts based on who lives in your household.
Here, Council Tax discounts depend on whether enough ‘qualifying adults’ live in your household (anyone who isn’t a qualifying adult is ‘disregarded’ for Council Tax). In brief :
- TWO or more qualifying adults. Where there are at least two qualifying adults in your household then no discount will apply and the full Council Tax rate will be due.
- ONE qualifying adult. Where only one qualifying adult lives in your household then the single person discount applies, equivalent to 25% off the Council Tax bill.
- NO qualifying adults. Where there are no qualifying adults in your household then either a discount of 50% or a 100% exemption will apply (this depends on exactly who lives there). Be aware ‘no qualifying adults’ isn’t the same as a property being empty.
Who is ‘disregarded’ for Council Tax?
As mentioned above, certain people don’t count as qualifying adults and as a result are ‘disregarded’ for the purpose of Council Tax. These people include:
Children. If you’re under 18 you’ll be disregarded for the purpose of Council Tax.
Full-time students. To count as a full-time student, your course must last at least a year and involve at least 21 study hours a week. Full-time student nurses normally qualify too and some councils also let part-time student nurses apply. Apprenticeship schemes sometimes count, as can getting funding from the Education and Skills Funding Agency (if you’re under 25) and British Council foreign language assistants.
Adults who are ‘severely mentally impaired’ (SMI). Such as those with Alzheimer’s, Parkinson’s, profound learning difficulties, multiple sclerosis and stroke sufferers. To qualify, you’ll need to be both medically certified as having an SMI and be receiving at least one of a number of benefits. See our SMI Council Tax discount guide for more.
Live-in carers. This is someone who looks after a person with a disability who isn’t their partner, spouse or child under 18, for an average of at least 35 hours a week – looking after a mother, father, brother, sister, niece, nephew, friend, uncle or aunt DOES count. The person cared for must be getting one of the following benefits:
Qualifying benefits for live in carers
– Attendance allowance.
– Middle or higher rate of the care component of disability living allowance.
– Standard or enhanced rate of the daily living component of PIP.
– An increase in constant attendance allowance.
– An increase in disablement pension.
– Armed forces independence payment.
You do NOT need to be receiving carer’s allowance to qualify for this Council Tax discount and more than one person in a household can qualify if each fits the criteria.
Care leavers (young adults). If you grew up in care and are now leaving (or did in the past) to live independently. In Scotland and Wales, you’ll be disregarded until the age of 24 or 25. In England, you won’t actually be disregarded, but local authorities often offer discretionary discounts to care leavers – it varies by council, so check.
Remember, if there is only one qualifying adult in your household then you’re due a 25% single person Council Tax discount. And if there are no qualifying adults then the discount is either 50% or 100%. Where you are eligible for a discount, you’ll need to apply.
Council Tax discounts if you’re on a low income:
You may qualify for a reduced Council Tax bill – by up to 100% – if you have a low household income.
Unlike discounts based on who lives in your home (where the rules are fixed by law), each council operates its own reduced bill scheme – meaning the size of any reduction and the qualifying criteria vary by local authority. This can result in households with similar incomes receiving significantly different levels of support.
Nevertheless, more than two million people are thought to be missing out on this type of Council Tax support. This may partly be because some eligible people think they’ll get the reduction automatically – but that’s not the case. You’ll need to apply for any reduction.
You’re on a low income and/or benefits
If you’re on a low income or claim benefits, such as Universal Credit, your household may qualify for a Council Tax reduction – which can be as much as 100%. It doesn’t matter if you own your home or rent, or whether you’re employed or not.
Rather, what you get depends on:
– Where you live.
– Your circumstances (such as income, number of children, benefits, residency status).
– Your income, including savings, pensions and your partner’s income.
– If any children or other adults live with you.
Remember, if you’re eligible you’ll need to apply – it’s not automatic.
You’re receiving Pension Credit:
If you or your partner are getting the ‘guaranteed’ part of Pension Credit, your household could be eligible for a full reduction on your Council Tax bill of up to 100%.
If you get the ‘savings’ part of Pension Credit, you may also be eligible for a reduced bill, though not by 100% – how much will depend on what savings you’ve got. And if you live with someone who isn’t dependent on you, then the reduction might also be less.
those in England in receipt of Pension Credit who are eligible for a Council Tax Reduction, only half are currently getting one,
Council Tax discounts if you’re terminally ill:
If you or someone else in your household is terminally ill, then you may be able to apply for an exemption from paying Council Tax. In brief:
– Only some councils allow this (under 30 currently, see the full list below).
– You won’t pay Council Tax again until the person who is terminally ill has passed away.
– Some councils limit the illness to a partner or family member.
– Some councils only offer the exemption to low household income homes, while other councils offer it to all households regardless of income.
In almost every case, a doctor or medical professional will be required to fill out what’s called an ‘SR1 form’, which confirms you’re terminally ill.
Properties adapted for a disabled person:
If you can prove your home has been adapted for a disabled person then you’re eligible to drop a Council Tax band. Where your property is already in band A (the lowest Council Tax band), your Council Tax bill will be reduced by 17% instead.
The types of adaptations could include:
– An extra bathroom or kitchen for a disabled person to use.
– Creation of sufficient floor space to make the home wheelchair-friendly.
– A room that’s ‘predominantly’ used by a disabled person (for example, a
downstairs room in a two-storey house that’s been turned into an accessible bedroom, or a room adapted specifically for a disabled person to use).
You must APPLY for a Council Tax discount
Discounts and reductions can be worth £100s off your Council Tax bill each month. You may be able to backdate too, though councils set their own rules about this – if they allow backdating, you’ll normally need to explain why you hadn’t claimed before.
Remember you need to apply for a discount or reduction. They’re not given automatically.
- England and Wales. Visit Gov.uk to find your council’s details and then apply.
