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Daily Record

Lifestyle

Linda Howard

Check for unclaimed Council Tax discounts this month to help boost finances during cost of living crisis

Council Tax Scottish Government Citizens Advice Citizens Advice Scotland

Citizens Advice Scotland is warning that Council Tax arrears could soar this year after new data showed its clients need help clearing debts almost three times higher than the average bill as a result of the cost of living crisis. The charity revealed that people using its free and confidential advice service owed a cumulative £12.7 million to local authorities for unpaid Council Tax between September 2021 and September 2022.

Citizens Advice Scotland’s financial health spokesman Myles Fitt, said: “Council Tax debt is the biggest debt issue the Citizens Advice network deals with and these figures suggest the cost of living crisis could see an explosion in the levels of arrears across the country as people prioritise expenditure for immediate cost of living needs. Clients owe over £12.7 million in arrears, with the average debt being almost three times as much as the average bill.”

He urged people to check if they are entitled to any savings or exemptions through the Council Tax Reduction scheme using the dedicated page on the Citizens Advice website here.

The latest figures published by the Scottish Government show that 456,790 people were in receipt of a Council Tax Reduction in October 2022, meaning around one-in-five households were benefiting from the scheme.

Scottish households have saved more than £3 billion in Council Tax since the Council Tax Reduction scheme was introduced almost 10 years ago.

Households entitled to a discount or exemption could see their Council Tax bill reduced to nil, depending on their circumstances. One of the most common discounts is a 25 per cent deduction for single person occupancy. This can also be claimed in households where someone, including mature students, is in further education at college or university.

The Scottish Government said that people who receive a Council Tax Reduction save on average £750 a year and become eligible for up to 35 per cent off their water and waste charges. However, many people may simply not be aware that they qualify for a discount - whatever band they are in - and could be missing out on savings worth hundreds of pounds this year.

Even though the new Council Tax year started in April, you can still make a claim now and processing times are typically within four weeks - if not sooner. The Scottish Government said that people who receive a Council Tax Reduction save on average £750 a year and become eligible for up to 35 per cent off their water and waste charges.

Below is our quick guide on how to check your Council Tax bill and a list of circumstances which could see you paying less each month.

How is Council Tax worked out?

How much Council Tax you pay depends on your local authority, which sets an overall amount each year and assigns a ‘band’ to your home, based on its value - it’s isn’t banded by its current market value, but what it was worth on April 1, 1991 - the date Council Tax was introduced.

Council Tax bands range from A to H. A is the lowest band with the lowest charges and H has the highest charges.

Band A - Up to £27,000
Band B - Over £27,000 and up to £35,000
Band C - Over £35,000 and up to £45,000
Band D - Over £45,000 and up to £58,000
Band E - Over £58,000 and up to £80,000
Band F - Over £80,000 and up to £106,000
Band G - Over £106,000 and up to £212,000
Band H - Over £212,000

Your bill also takes into consideration whether or not you are eligible for a reduction or exemption.

How to check your Council Tax band

The band of every property in Scotland is available to check online here.

Could you be exempt from paying Council Tax?

You will not pay Council Tax if:

You are a full-time student
You are in the Armed Forces in Forces accommodation
You live in a care home or hospital
Your home is unoccupied and empty (up to six months) - for example, if you’ve gone into hospital
You have a severe mental impairment (e.g. dementia) - if you only live with someone who has dementia, then you’ll be treated as a sole occupant as they will be disregarded, but you won’t both be exempt

Contact your local authority about your eligibility and how you can apply for an exemption - a link to all 32 local authorities in Scotland is at the bottom of the page.

Could you be eligible for a discount on your Council Tax bill?

There are some circumstances where you may get a reduction on your Council Tax and the amount of discount varies depending on your circumstances.

If you live alone

The full Council Tax is calculated assuming there are two or more people living in each home – if you live alone, you should apply to your local council for a discount - you could get a 25 per cent reduction, regardless of your financial circumstances.

If you live with someone under 18 or a student

Council Tax is not calculated for anyone aged under 18, full-time students, student nurses and some apprentices or trainees.

If you are providing unpaid care for someone for 35 hours per week you could be due a Council Tax discount (Getty Images)

If you are a carer

Carers who look after someone in the household for at least 35 hours per week and who meet additional criteria may be disregarded for Council Tax purposes, contact your local authority for their eligibility criteria.

Just be aware, this doesn’t apply if the person receiving care is the partner of the carer, or is the carer’s child aged under 18.

If there are major changes to the value of your home

You may be able to get your home moved to a lower band if it has decreased in value.

For example, if you have made home adaptations for a disabled person, or if a motorway has been built nearby.

You may also get the band lowered if a room in the house is dedicated to equipment used by a disabled person on a daily basis.

If you change the way you pay

Although the total year’s amount will stay the same, you can request that your bill be split over 12 months instead of 10, so that you can spread the cost and reduce your monthly outgoings.

Alternatively, if you can afford to pay the whole bill in one lump sum, check with your local council if you can get a discount.

Apply for Council Tax support

You may be eligible to claim council tax support, sometimes called Council Tax Reduction, if you’re on a low income or claiming certain benefits.

You can also claim Council Tax support regardless of whether you own your own home or rent, or whether you’re working or unemployed.

Each local council is responsible for operating their own Council Tax support scheme, so the amount of support given across the country may vary.

The amount you will get depends on many factors, including:

Which benefits you receive
Your age
Your income
Your savings
Who you live with
How much council tax you pay

You may get more Council Tax support if you receive a disability or carers benefit.

If you receive the Guarantee Credit Part of Pension Credit you may even get your council tax paid in full. If you don’t have it, but are on a low income and have less than £16,000 in savings, you may still get some help.

Local councils

Contact your local council from the list below to apply for a Council Tax discount or to check if you are eligible for their support scheme.

To keep up to date with the latest cost of living news, join our Money Saving Scotland Facebook page here, or subscribe to our newsletter which goes out four times each week - sign up here.