The DWP benefits can slash or even erase your council tax bill. From single discounts to full exemptions, find out if you’re eligible for significant savings that many people miss out on!
Council Tax Relief: DWP Benefits That Could Make Your Bill Disappear Completely
By Chourouk Derkaoui
Published on 13 November 2024 15:11
Many households are facing a crippling council tax hike, especially with recent increases. However, people on benefits or meeting certain criterion may be able to lower their council tax – or eliminate it. Below are some possible cuts and exemptions.
However, if you live alone, you’re entitled to an automatic 25% discount on your council tax. Additionally, if all residents of a home qualify for an exemption (such as students or those with certain disabilities), a 50% reduction is available. Full exemptions are also possible in certain situations.
Council Tax Support Scheme
The old Council Tax Benefit is converted to a new scheme called a Council tax support. This offer means-tested discounts to … which reduces or even cancels the council tax bill. Even though it is available to all, your chance to claim one is turning out to be one of the greatest unclaimed benefits in the UK, with 2,700,000 people missing out on £2.8 billion.
Although, the criteria for Council Tax Support vary by local authority, so it’s essential to check with your council. This benefit is means-tested, meaning your income, savings, and overall household circumstances determine the amount you’ll need to pay.
Eligibility for 100% Council Tax Support
In some cases, households can receive up to 100% Council Tax Support, eliminating their bill entirely. Eligibility criteria include:
- Pensioners (currently aged 66 or older)
- Individuals entitled to:
- Disability premium or disabled child premium (top-ups available for those on income-based benefits)
- Employment Support Allowance (ESA) along with a qualifying disability benefit (e.g., Personal Independence Payment, Attendance Allowance, or Disability Living Allowance)
- Carer’s premium for those receiving income-based ESA, Jobseeker's Allowance, Income Support, Pension Credit, or Universal Credit
- War Disablement Pension, War Widow’s Pension, or War Widower’s Pension
- Support for a dependent child under the age of six
For those of working age not meeting these specific conditions, councils typically require some contribution towards council tax.
Disabled Band Reduction Scheme
Local councils also offer a Disabled Band Reduction Scheme. If you or someone in your household is disabled, and you need additional space or amenities due to the disability—such as an extra bathroom, kitchen, or room, or extra space for wheelchair use—you may qualify for a reduced council tax rate. Under this scheme, your bill would be recalculated based on the next lowest council tax band.
Checking Your Eligibility
To confirm your eligibility for council tax exemptions or reductions, get in touch with your local government. This is because the requirements and procedures for applying for various schemes differ. Making use of these advantages can have a big impact on your overall financial health.