MILLIONS of households will see their council tax bills jump dramatically in a matter of weeks – but there’s steps you can take to reduce the cost.
People across the country are facing an average 5% rise in council tax, but 29 local authorities have been given permission to raise bills even further.
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The level of the tax, which pays for local services such as road upkeep and state schools, is set by your local authority.
You can find out what council area you live in on the Government website.
Local authorities in England can raise council tax by up to 4.99% each April without holding a referendum.
But they can increase bills further if they hold a local referendum for public approval.
If you’re living in Scotland, the councils there aren’t subject to strict caps on annual increases.
Councillors in Falkirk have approved the largest council tax increase in the UK – a whopping 15.6%.
The rise means the average Band D household in the area, including parish charges, will see their annual bill increase from £1,363.82 to £1,576.57.
That’s an additional £212.75.
The rises are another blow to struggling households, but there are some steps you can take to help get costs down.
Here’s what you should check…
Are you or the people you live with eligible for a discount?
You might not be aware that you can get a discount on your council tax bill, or even get it for free.
People who live on their own, for example, are entitled to 25% off.
This also applies if there is one adult and one student living together in a household.
You may also be able to get 50% off your bill if you live with someone who doesn’t have to pay council tax, such as a child or someone who is severely mentally impaired.
Pensioners might be eligible for a reduction too.
If you receive the Guarantee Credit element of Pension Credit, you don’t have to pay.
If not, you could still get help if you have a low income and less than £16,000 in savings.
Other people on a low income or receiving benefits might also be eligible for a reduction.
You’ll need to check with your local council for full details about discounts and exemptions.
Those who live in an all-student household don’t have to pay for council tax at all.
In any case, you will need to apply to the council for a reduction.
Is your home itself eligible for a discount?
You may also be able to get a discount based on the property itself – but again you’ll need to apply.
Your home could be eligible if it has been adapted for a disabled person.
If you can demonstrate this, you will drop a council tax band (or if you’re in Band A, your bill will be reduced by 17%).
The adaptations could include an extra bathroom or kitchen for a disabled person to use, extra floor space, or a room predominantly used by a disabled person.
Properties undergoing major repair work or structural alterations to make them liveable may also be exempt from council tax for up to a year.
You may also not need to pay council tax if your home is empty.
Reasons for this can include:
- If you’re a long-term resident of a care home or hospital
- You’re in prison
- The owner of the property has died.
You may be able to get a discount if your home has an annexe or similar extension.
An annexe is typically described as a self-contained and separate living area from your main home.
If the council believes you have an annexe, you will receive two council tax bills – one for the annexe and one for the rest of your home.
You can get 50% off the annexe’s council tax in this case, although you’ll still need to pay council tax as normal on the rest of your home.
Are you in the right council tax band?
The amount you pay isn’t just determined by the area you live in – it’s also what council tax band your property is in.
The bands go from A to H, and they are based on the estimated value of your property.
People with more expensive homes will therefore pay more in council tax.
You can work out which band your home is in by checking with your local authority or on the postcode checker.
Hundreds of thousands of homes across England and Scotland are thought to be in the wrong band – which means you could be paying more than you should.
If you think this might be the case, you can try to change the band.
You might even get a payout if it turns out you’ve been charged too much.
A good starting point is to check if your band is higher than neighbours in similar or identical properties.
You can use the postcode checker again to find this out.
If neighbours in similar properties are in a lower band than you, you may be able to claim.
However you need to be careful with this as it’s possible your council tax band can be increased as well as decreased, and you could even end up dragging up your neighbours’ bills too.
Therefore it’s important to do a second check on the value of your property before you contact your council.
You will need to estimate what your home was worth in 1991, as the bands are still valued on prices from that year.
If you bought your house after 1991, you can use its price and date of sale.
If you rent or bought earlier, you’ll need to find an estimated price.
Once you have your home’s most recent sale price and the date of its sale, you can use a free online calculator to work out an estimate of what it would have been worth in 1991.
Then if you are still sure your home is in the wrong council tax band, you can contact the Valuation Office Agency (VOA) in England and Wales or the Scottish Assessors Association (SAA) in Scotland to do this.
Make sure you’ve got the evidence to hand showing you’re paying more, such as addresses of similar properties to yours in a lower band.
If the VOA agrees that your property is in the wrong section, it will contact you to let you know it will be changed.
Can you pay in a lump sum?
Of course, this option won’t be possible for everyone.
But if you can pay your council tax in a lump sum rather than monthly, you may be able to get a small discount.
You should check whether your local authority offers this.
For example, the London Borough of Havering offers a 1.5% discount on council tax bills to those who pay early in a lump sum.
