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Five groups could pay less for their council tax – check if you’re eligible

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You may be able to get a reduction on your payments if you fit into one of five categories.

Woman paying bills
Five groups of people could be entitled to council tax reduction depending on their income(Image: Getty)

Brits are urged to check if they could be eligible for a discount on their council tax. You may be able to get a reduction on your payments if you fit into one of five categories.

Council tax is set by your local authority and helps fund services such as rubbish collection and road upkeep. The amount you pay is determined by your home’s valuation band and the council area in which you reside.

However, not everyone is expected to pay the full amount. Citizens Advice explains that some people are entitled to what is known as council tax reduction (CTR).

This is available to people are on a low income or claim benefits. Citizens Advice says: “If you’re on a low income you might be able to get your council tax reduced. If you get benefits or have other people living with you, this might affect how much your council tax is reduced by.

Man paying council tax bill
If you are on Universal Credit or some other benefits you could be entitled to a reduction of your council tax(Image: Getty)

“Your local council will ask you details about your income and your circumstances, so they can work out if you’re entitled to council tax reduction (CTR). They will then work out your new bill and tell you how much council tax you need to pay.

“If you have other people living with you who are aged 18 or over, you might all be responsible for paying council tax. Only one of you needs to apply for CTR.”

It’s important to note that if you’re awarded CTR, you won’t normally get an actual payment. The council will reduce the amount of council tax you have to pay.

There are two types of CTR – working age and State Pension age. Your eligibility for the working age CTR will vary depending on your council.

You need to check details with your local council to see whether you are eligible for a reduction. However, people who come under five categories will be eligible for a reduction.

Money
Your council tax bill will also depend on the band value of your house and where you live(Image: Getty)

Citizens Advice says you can apply for CTR if you’re liable for the council tax bill and you get:

  • Guarantee credit part of Pension Credit, either on its own or with the savings credit. You can apply for full CTR even if your weekly entitlement to the guarantee credit is too small to be payable
  • Universal Credit
  • Income Support, income-based Jobseeker’s Allowance, or income-related Employment Support Allowance – you’ll get maximum council tax reduction less any non-dependent deduction.

If another adult who is not your partner lives with you, your maximum council tax reduction might be less because they are expected to contribute to the council tax bill. This is called a ‘non-dependent deduction’.

If you do not get one of these benefits, you can still apply for CTR if you have a low income and capital below £16,000.

You can also get 25 per cent off your council tax bill if you:

  • Live on your own
  • Or everyone else in your home is “disregarded”.

People are classed as “disregarded” and therefore do not pay anything towards council tax if they are:

  • Under 18 years old
  • On certain apprentice schemes
  • 18 or 19 years old and in full-time education
  • A full-time student at college or university
  • Under 25 years old and get funding from the Education and Skills Funding Agency
  • A student nurse
  • A foreign language assistant registered with the British Council
  • Severely mentally impaired
  • A live-in carer for someone who is not your partner, spouse, or child under 18
  • A diplomat.

To find out more, visit gov.uk/council-tax/who-has-to-pay or contact your local council.

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