Help with council tax

Council tax is a local tax applying only in England, Wales and Scotland so the information below relates to those countries.  (If you live in Northern Ireland please visit our page about Rate Rebate. more...)

There are different ways in which you may be able to get help with your council tax bill and some people may be eligible for more than one type of help:

• The property itself may be exempt for council tax  or
• You may get a discount on the council tax bill if residents within the property fall into certain categories     and/or
• You may qualify for the disability reduction scheme if space within the property is used in a certain way   and/or
• You may qualify for Council Tax Benefit if your income is relatively low and your savings are under £16,000    and/or
• There are a numer of local schemes which may help to reduce your council tax bill

Council Tax exemption

There are a variety of ways in which properties can be exempt for council tax; the following are particularly relevant for carers and those for whom they are caring:

• If you have left the property empty for the purpose of receiving or providing personal care due to old age, disablement, illness, past or present alcohol or drug dependence, or past or present mental disorder
• If the property is wholly occupied by a person (or persons) who is severely mentally impaired and no one else could be liable
• If the property has been left empty by persons now resident in a hospital, a care home or a hostel where personal care is provided
• (In England and Wales only) where there are at least two properties (self contained units) within a single property and one occupant is a 'dependent relative' of someone resident in another part of the property.  The exemption applies to the part of the property where the dependent relative is resident and that dependent relative must be aged 65 or over, severely mentally impaired or 'substantially and permanently disabled'.

Discounts on the council tax bill

Council tax is paid at a flat rate regardless of how many people live in the property.  However, if only one person or no-one lives in the property (or is treated as such) a discount can be applied to the bill.  There are a number of people who are 'disregarded' (treated as not living in the property) when it comes to calculating council tax:

A 25% reduction - if, after taking into account disregarded people, there is only one resident in the property who would 'count' for council tax a 25% reduction is applied to the bill

A 50% reduction - if, after taking into account disregarded people, there are no residents who would count for council tax a 50% reduction is applied to the bill

To be 'disregarded' as a carer, you must:

• provide care for at least 35 hours a week and
• live in the same property as the person you are caring for  and
• not be the spouse or partner of the person you care for, or their parent if you care for a child under 18 and
• the person you care for must receive either the highest rate of the care component of Disability Living Allowance or the higher rate of attendance allowance or constant attendance allowance

You don't have to claim Carer's Allowance to qualify for this discount, and your income and savings will not affect your eligibility. If there is more than one carer in the property, they can both be ignored for council tax purposes as long as they both meet the conditions.

Other categories of people who are disregarded for council tax include the following:

• A person is considered 'severely mentally impaired' if they have a severe impairment of intelligence and social functioning and this impairment appears to be permanent. To qualify for the discount they will need a certificate from a registered medical practitioner confirming this and must be entitled to one of a number of specified benefits which include Disability Living Allowance (middle or high rate care component), Attendance Allowance, Constant Attendance Allowance, Severe Disablement Allowance, Incapacity Benefit and Income Support where a disability premium is included.
• Anyone under the age of 18 or up to 19 if Child Benefit is still in payment
• Full time students

For example:

1. Fred and Jean are liable for council tax on the property in which they live.  Jean's mother, Alice, who lives with the couple is suffering from dementia and is receiving the higher rate of Attendance Allowance - Jean cares for her at least 35 hours a week.  Fred also cares for Alice 35 hours a week, during weekends and before and after his paid work.  The only other person in the household is Fred and Jean's 15 year old son, Bob. All the residents in this property can be disregarded so the council tax discount is 50%. 
NB It doesn't matter whether or not Fred or Jean receive Carer's Allowance.

2.  Bill spends 35 hours a week looking after his son, Adam, who is 23, has severe learning disabilities and receives the highest rate of the care component of Disability Living Allowance.  Bill's mother Jenny also lives in the house but does not spend 35 hours a week looking after Adam. Bill and Adam are disregarded but not Jenny, so the council tax discount is 25%.

Disability reduction scheme

You may be able to get a reduction in council tax under the disability reduction scheme if anyone resident in the property (adult or child) is 'substantially and permanently disabled'.  In addition, one of the following conditions have to be met:

• there is an additional bathroom or kitchen in the property which is needed by the disabled person or
• there is a room (other than a bathroom, kitchen or toilet) needed by and mainly used by the disabled person or
• there is enough space in the property for the disabled person to use a wheelchair indoors

There is no general test of who is considered 'substantially and permanently disabled'.  Cases have clarified that if an extra room is required it means that it is additional i.e it would not be required for the relevant purpose if the person were not disabled.

A disability reduction will mean that the council tax bill is reduced to the amount payable for a home in the valuation band below yours.  If you are in the lowest band already (Band A) you get a reduction of one sixth of the bill.

For example:  Mina has a home which is placed in Council Tax Band C and has to pay £800 a year.  She qualifies for a disability reduction because there is an adapted bathroom in the home which is required by her disabled mother.  So Mina is placed in Band B, paying only £500 a year.

How to apply for council tax exemption, discount and/or disability reduction

You should check your council tax bill to see if these have already been awarded and, if not, should contact your local authority as quickly as possible to ask for them to be applied.  Your local authority may have special forms which you will need to complete and you will need to provide appropriate evidence.  Or you could use the standard letter at the foot of this page.

Backdating council tax exemption, discounts and disability reduction

Council tax exemption, discounts and disability reduction can be backdated to the date you should have received them (as far as April 1st 1993 when council tax was introduced) but you will need to produce evidence of eligibility for previous years.  You do not have to show any reason for failing to apply earlier.  If your local authority insists on this you should consider appealing to the Valuation Tribunal (see below).

Failing to report a change in circumstances which affects your council tax liability

You are obliged to promptly report changes in circumstances which affect your entitlement to an exemption, discount or disability reduction.  If you fail to do so, the local authority may impose a penalty.

What to do if refused an exemption, discount or disability reduction

You can appeal most of these decision by writing to the Local Authority and you should expect a reply from them within 2 months.  If this appeal is also refused (or they do not reply within 2 months) you have 2 months to appeal to the Valuation Tribunal (England and Wales) or the Valuation Appeal Committee (Scotland).

• Some decisons about property exemption cannot be dealt with by the Tribunal and you may need legal advice
• The Valuation Tribunal/Appeal Committee hearings are relatively informal, free of charge and held at different venues across the country
• For further information see www.valuation-tribunals.gov.uk or telephone 020 7841 8700 (England and Wales).  In Scotland if you want to appeal, you need to inform your local council who will pass the appeal to the secretary of the Valuation Appeal Committee for your area

Local Authorities often fail to understand the various types of help with council tax they are obliged by law to offer and their written or online information can be confusing.  You may need to be persistent with your appeal. 

For further advice, ring CarersLine on  0808 808 7777 (Wednesdays and Thursdays 10am to 12 noon and 2 to 4pm)

Council Tax Benefit

Council Tax Benefit is a means-tested benefit paid to help people with their council tax bill. The amount you get depends upon who is in your family, your income and savings, and how much council tax you have to pay.

To qualify for Council Tax Benefit, you must:

• be liable for council tax
• be on a low income - from benefits or work
• have savings of less than £16,000
• not be subject to immigration control
• meet the residence and presence conditions

If you get or have underlying entitlement to Carer's Allowance, you may be able to get extra help paying your council tax because a carer premium will be included in your Council Tax Benefit.

To claim Council Tax Benefit, contact your local authority and ask for an application form; you should make your claim as soon as you can to avoid losing benefit.

Backdating Council Tax Benefit

You can backdate Council Tax Benefit up to 52 weeks but normally have to show 'continuous good cause' i.e. reasons for failing to apply for the benefit earlier, such as health problems and/or language difficulties.  But if you or your partner are aged 60 or over, Council Tax Benefit can be backdated automatically for 52 weeks without having to provide reasons.

Failing to report change in circumstances affecting payment of Council Tax Benefit

Failing to report a change in circumstances can lead to an overpayment which you will have to repay and sometimes can lead to a prosecution for fraud if found to be deliberate.

How to appeal against a refusal of Council Tax Benefit

If benefit is refused you have the right of appeal to a Social Security Tribunal but you must be careful of time limits, as an appeal must normally be made within one calendar month of the date of the decision.  The appeal is made in the first instance to the Local Authority.

Local Schemes

It is also worth checking to see if any of the following apply in the area where you  live:

• Council tax rebate scheme linked to British Gas.  In some areas each household purchasing home insulation from British Gas can receive a rebate of up to £100 on their council tax bill.   For further information go to www.house.co.uk or telephone 0845 971 7731
• Some local authorities use their discretion to award council tax reductions to certain categories of people (for example, to those over 65 who do not currently receive Council Tax Benefit).  You could check with your own local authority to  find out if they have any special reductions.