TAXING TIMES
Martin Lewis warns millions could face paying £100s more on council tax bills & reveals who could be affected
One policy rumoured to be under consideration for the budget is ending the single person discount for council tax
MARTIN Lewis has warned millions of Brits that they could face paying hundreds of pounds more on their council tax bills.
The Money Saving Expert spoke out amid reports the Labour Party government could axe the 25% single-person discount.
2
2
Martin warned on X: "Reports out that the govt hasn't ruled out ending the 25% single person council tax discount.
"Clearly this would be a painful hit for single adults and single-parent families."
Sir Keir Starmer refused to rule out the change when asked about it during Prime Minister's questions on Wednesday, saying he would not "pre-empt the budget."
Money whizz Martin also questioned whether those with Severe Medical Impairments could be affected if they lived with another adult.
Read More in Money
And the financial expert claimed that any substantial council tax changes should not be done until a re-banding is complete with up to 400,000 homes in the wrong band.
Scrapping the 25% single-person council tax discount would save the public purse £3 billion a year, according to the Institute for Fiscal Studies.
It cuts around £543 per year from the average Band D council tax bill in 2024-25.
However, it's important to note that any decision to axe council tax discounts is still speculative at this stage.
Most read in Money
Any changes announced in the budget would also be unlikely to come in straight away.
The current discount is available to households with one adult person living inside, or a household with one single adult and others who don't count as having to pay council tax.
How to challenge your council tax band
This means if someone is severely mentally impaired, a carer, in hospital, a care home or hostel, has another main residence, or is a student, youth trainee or apprentice.
For example, if one single adult lives with a student, they can get 25% off their council tax.
The 25% single-person discount also applies to widows living alone after a partner.
Given the current average Band D council tax bill in England for 2024-25 is £2,171, scrapping the 25% discount would be worth £542.75 a year.
It comes with millions of pensioners set to lose out on the winter fuel payment after the Government confirmed it would become means-tested.
Help you can get paying your council tax
It's not just single people, as it stands, who can get a discount on their council tax.
You can also get money off the priority bill if you meet other criteria, including if you are a household of students.
If you live in a household with a carer you can get up to 50% off and sometimes if your home is undergoing major repair work too.
There are a few other ways you can get a discount:
Retirees
Pensioners can also get a council tax discount, including those on the Guarantee Credit element of Pension Credit who can get 100% off.
If not, you could still get help if you have a low income and less than £16,000 in savings.
And of course, if you are a pensioner living alone but not on the Guarantee Credit element of Pension Credit, you can still get 25% off.
Low-income households
Low-income households or those on benefits can also apply for a reduction on their council tax.
Whether you are eligible depends on where you live.
You could also get a deferral if you're struggling to pay your bill, or you can speak to your council about setting up a payment plan to manage the cost.
If someone has died
If you’re selling a property because the owner has died, you don’t pay council tax until after probate is granted, as long as the house remains empty.
After probate, you might be able to get a six-month exemption, as long as the property remains empty and ownership hasn’t changed hands.
How to challenge your council tax band
If you think your home is in the wrong Council Tax band, then you'll need to place a formal challenge.
Contact the (VOA) in England and Wales or the (SAA) in Scotland to do this.
Gather together evidence showing you're paying more - this could be having addresses of similar properties to yours in a lower band, for example.
If the VOA agrees that your property is in the wrong band, it will contact you to let you know your band will be changed.
It can take up to two months for the VOA to review your case.
But be warned - challenging your band might not work.
While you could get moved to a lower band and pay less, there's also the chance the VOA could find you're not paying enough.
This could mean you're moved to a higher band - and your neighbours too.
If you disagree with the VOA's ruling, you may be able to appeal your case - but only if you've told this will be possible when you get the decision.
You must appeal within three months of your decision - to do this, get in touch with the .
If the Valuation Tribunal agrees with you, it will get the VOA to change your band - and your bill will change.
Other council tax bill help
If you're not eligible for a council tax discount or can't move bands, there are some other options.
Section 13A relief
You can make an application for what is called "discretionary relief" for your council tax bill by filling out a Section 13A application.
All local authorities must have a Section 13A scheme where a person can request for their council tax to be reduced or written off.
But you will most likely have to prove you are in financial hardship and all other avenues to get money off the bill have been explored.
You can request a Section 13A form from your local council.
Once you’ve sent it to your local authority, you should be told about a decision within 14 days.
Council tax disability reduction scheme
You can get your bill slashed if you or someone in your home is classed as "substantially and permanently disabled" and one of the following applies:
READ MORE SUN STORIES
- there's a room in the property which is used to meet your needs (such as for the purposes of dialysis or the storage of health equipment)
- there's a second bathroom or kitchen designed to meet your needs
- there's enough space in your home to allow wheelchair access
If the above criteria is met, your council tax bill is reduced to the next lowest band.
What council tax support is available?
THERE are several ways you can get discounts and reductions on your council tax bill.
In some cases, you can even get the bill completely wiped with a council tax reduction.
Factors such as your household income, whether you have children, and if you receive any benefits, will influence what you get.
To apply, visit //www.gov.uk/apply-council-tax-reduction.
You'll need your National Insurance number, bank statements, a recent payslip or letter from the Jobcentre, and a passport or driving licence when filling out the details.
Below, we reveal all the ways you can get discounts or a reduction on your bill:
Single person discount
If you live on your own, you can get 25% off your council tax bill.
This also applies if there is one adult and one student living together in a property, or if there is one adult and one person classed as severely mentally impaired in the home.
If you live with someone who doesn't have to pay council tax, such as a carer or someone who is severely mentally impaired, you could get a larger reduction too, of up to 50%.
And, if you live in an all-student household, you could get a 100% discount.
Retirees
Pensioners may also find themselves eligible for a council tax reduction.
If you receive the Guarantee Credit element of Pension Credit, you could get a 100% discount.
If not, you could still get help if you have a low income and less than £16,000 in savings.
And a pensioner who lives alone will be entitled to a 25% discount too.
Low-income households
If you are on a low income or receiving benefits, you could be eligible for a reduction on your council tax.
Whether you are eligible will vary depending on where you live.
You could also get a deferral if you're struggling to pay your bill, or you can speak to your council about setting up a payment plan to manage the cost.
But one thing to remember is if you are struggling you should contact your council as early as you can.
Topics