Those claiming a wide variety of benefits may be able to get a significant discount on their council. In some cases, they may even be able to have all of their council tax written off. If you live alone, you can receive a 25 per cent discount on your council tax bill.
This discount also applies if you live with a ‘disregarded person’. ‘Disregarded people’ are individuals who are not considered by the local authority when calculating a household’s council tax.
A person will be disregarded if they’re:
- Aged under 18
- Aged 18 or 19 and someone is entitled to Child Benefits for them
- Aged 18 or 19 and were still in education on 30 April – if they’re a school or college leaver aged 18 or 19 and they left after 30 April, they’ll be disregarded until 1 November.
They must also be claiming one of the qualifying benefits which includes benefits such as:
- Incapacity benefit
- Attendance allowance
- Severe disablement allowance
- Disability living allowance (higher or middle-rate care component)
- Increase in disablement pension (due to constant attendance being needed)
- Unemployability supplement or allowance
- Constant attendance allowance
- Income support (which includes a disability premium)
- Personal independence payment (standard or enhanced daily living component)
- Armed forces independence payment
In England and Wales you can also be receiving:
- Disability working allowance (based on getting income support including disability premium)
- Universal credit (including an element for limited capability for work or limited capability for work and work-related activity)
In Scotland you can also be eligible for, or receiving:
- Tax credits (including disability element)
- Employment and support allowance
- Universal credit
To qualify for the disabled person’s reduction, your property must have been adapted to meet the needs of the disabled person and meet certain criteria. There is also a severe mental impairment discount available.
If you are categorised as having a severe mental impairment (SMI) and live alone, you could be eligible for a 100 per cent council tax exemption. This also applies if you share your home with one or more adults who are also classified as SMI or are full-time students.
Households composed entirely of SMI individuals or students (or a mix of both) are completely exempt from paying council tax. A 50 per cent discount may be granted to an individual with an SMI living with one or more other adults who are also exempt from council tax.