BILL BLOW
Millions of households brace for essential bill to rise by £109 a year after No10 gives green light
If you are on a low income, you could be eligible for some help
MILLIONS of households are bracing for an essential bill to rise by a whopping £109.
Downing Street confirmed this week that town halls will be free to whack up council tax levies by up to 5% in April - significantly above the current 1.7% inflation rate.
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At a fiery PMQs on Tuesday, Conservative Party leader Kemi Badenoch had demanded the Prime Minister rule out a rise.
But despite pledging in 2023 to freeze caps in Labour's first year of government, Sir Keir Starmer replied: “On the question of councils, she knows what the arrangements are.”
The opposition chief responded: “I think the House will have heard that the Prime Minister could neither confirm nor deny whether the cap on council tax was being raised.”
The move will see bills in the average band D family household increase by £109.
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The Tories accused ministers of secretly plotting to raise council tax by a whopping £2.4 billion.
At PMQs Ms Badenoch also slammed Sir Keir for not exempting care homes from the Budget employer's national insurance raid.
She accused Labour of creating a "social care funding gap".
The PM responded that an additional £600m for local authorities announced at the Budget would help plug any funding black holes.
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Council Tax bills usually rise in April each year.
Earlier this year most local authorities increased bills by 5% adding £103 a year for the typical Band D property.
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But some councils were given special permission to hike bills by as much as 10%, adding £206.50 to bills.
See how much your council tax bill went up by in April this year with our interactive map.
The national limit on how much council tax can be raised is set by the government every year, this is then applied to bills from April.
It's then up to each local authority to decide if it will choose the maximum and some may decide to increase council tax by less.
It's important to bear in mind that each council sets their own rates and that what residents actually pay is determined by your council tax band.
Bands are based on your home's value - the more expensive the property, the more council tax will be charged.
Local authorities usually spend time consulting on how much to hike bills by before confirming the amount closer to April.
It comes after The Sun reported how thousands of households could cut their council tax bill by up to £2,100 a year by filling in an easy form.
How you could get a discount on council tax
Those on low incomes are usually eligible for council tax support.
This reduces the amount of council tax you have to pay.
The size of the discount you get depends on your income.
There is a maximum discount of 75%, unless you qualify as a member of a , but this will vary from council to council.
For example, households in Leeds can claim up to 100% discount on their council tax if they fall into the following groups:
- pensioners
- disabled people entitled to an Enhanced or Severe Disability Premium
- lone parents responsible for one or more dependent children under five, they must not have a partner living with them
- carers eligible for Carer’s Allowance
- war widows and war pensioners, who must be in receipt of a War Widows Pension, War Disablement Pension or Armed Forces Compensation Payment
Meanwhile, households in Wandsworth, London, can get a 100% discount if they receive any of the following benefits:
- Disability Living allowance
- Personal Independence Payment
- Attendance Payment
- Carer’s Allowance
Across the country, you may be eligible for Council Tax Support if you:
- Live in the UK
- Pay council tax
- Are on a low income
Each council runs its own council tax support scheme.
Local authorities are given a different portion of funding depending on the size of the catchment area, population, and need.
Eligibility requirements will vary depending on where you live - so check directly with your council if you could get the cash help.
You can find out all of this information at www.gov.uk/apply-for-council-tax-discount.
If you are on a low income or receiving benefits, you could be eligible for some help towards your council tax.
Whether you are eligible will vary depending on where you live.
If you find yourself struggling to pay your bill, you may also be able to get a deferral or 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.
However, those on low incomes can get their council tax bills reduced by up to 100%.
With the average Band D council tax set by local authorities in England currently standing at £2,171, it means households could potentially save thousands of pounds a year.
The highest possible council tax is for people who live in Band H properties in Rutland, where they will be charged a hefty £5,087 each year.
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This year is the first time that this levy has cleared £5,000 for any household.
While most of us have more modest payments, the sharp rises may leave many families feeling the pinch, especially against the backdrop of a cost-of-living crisis.
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