Millions of Britons on low incomes and benefits could be entitled to significant reductions on their council tax bills, with some qualifying for up to 100 per cent off.
The call comes as councils across England face a mounting debt crisis, with thousands of residents being taken to court over unpaid bills.
Some could get Council Tax Reduction worth up to £1,500 per year, as figures reveal around 2.25 million people may be missing out on vital support.
Martin Lewis, the money saving expert said: “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.
“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.”
The support often applies to those receiving means-tested benefits such as Universal Credit and Pension Credit. However, Lewis warned that many people mistakenly believe they’ll automatically receive all available benefits.
Each local council operates its own reduction scheme
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Each local council operates its own reduction scheme, with eligibility depending on factors including age, income, savings, household composition and current Council Tax payments. Additional support may be available for those receiving disability or carer’s benefits.
Those receiving the Guarantee Credit part of Pension Credit may even get their Council Tax paid in full.
If they don’t get Guarantee Credit but have a low income and less than £16,000 in savings, they may still get some help.
The scale of the council tax crisis is rapidly escalating, with councils in England now seeking around 5,300 debt orders per day, up from 4,500 last summer, according to Freedom of Information data.
In some of England’s poorest areas, particularly in the North and Midlands, as many as one in five residents are facing court action over unpaid council tax.
Local authorities have sought at least three million liability orders from households since last March.
The orders grant councils extensive powers for debt recovery, including the use of bailiffs and the ability to deduct money directly from wages or benefits.
Councils can demand payment of the entire year’s bill – typically over £2,000 – within seven days if just one monthly payment is missed.
Working-age applicants face different rules, which are typically less generous and vary by council.
The amount of Council Tax Reduction available depends on multiple factors specific to each case. Key criteria include the applicant’s age, income including benefits, savings level, and household composition.
The reduction scheme operates differently across local councils, meaning support levels can vary significantly depending on where you live.
Residents are advised to check their local council’s specific policy to understand potential entitlements. Those with disabilities or caring responsibilities may qualify for enhanced support through the scheme.
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The mounting council tax crisis comes ahead of a planned five per cent rise in bills across England next April.
When residents face difficulties with payments, councils can pursue aggressive recovery measures that campaigners say are harsher than those allowed in the private sector.
If payment arrangements cannot be met, local authorities can seek liability orders through magistrates’ courts, adding up to £150 in extra fees to existing debts.
The consequences can be severe, with councils having the power to force property sales or even seek imprisonment.