Households with disabled members may be entitled to significant reductions on their council tax bills through a scheme that does not require claimants to be in receipt of any disability benefits. The eligibility criteria centres on the physical characteristics of the property rather than the financial or medical circumstances of its occupants.
How the Disabled Band Reduction Scheme Works
Known as the Disabled Band Reduction Scheme, qualifying households can have their council tax bill reduced to the next lower tax band, or by a flat rate of 17% for those already in the lowest band, Band A. The scheme is designed to support disabled people who face additional housing costs as a result of their disability, such as requiring a larger property than they would otherwise need.
To illustrate the potential savings, a property in the City of London currently rated at Band E carries a council tax bill of £1,625.02 for the year. Under the scheme, that household’s bill would fall to the Band D rate of £1,329.56, a saving of more than £300 annually.
To qualify, a property must feature either additional indoor space to accommodate wheelchair use, or an extra bathroom, kitchen or room that is genuinely necessary for the disabled resident, for instance, a spare room used for dialysis treatment or to store medical equipment. The home must also serve as the primary residence of at least one disabled person, whether an adult or a child, and that individual need not be the person responsible for paying the council tax bill. Applications can be submitted online through the Gov.uk website.
Further Discounts for Severely Mentally Impaired Residents
For households where a disability is present but the property does not meet the scheme’s physical criteria, separate provisions exist. According to government guidance, a reduction is available for residents who are classed as severely mentally impaired, and in certain circumstances this can eliminate the council tax bill entirely.
A full 100% reduction applies where the severely mentally impaired individual lives alone, resides solely with others who are also severely mentally impaired, or shares the property with full-time students. Where all remaining household members are disregarded for council tax purposes on other grounds, a 50% discount is available. If, however, the severely mentally impaired person lives with another adult who has no disability and is not otherwise disregarded, the maximum reduction available falls to 25%.
The range of people considered disregarded for council tax purposes is broader than many households may realise. It includes those under 18, full-time students at college or university, student nurses, apprentices on certain schemes, those aged 18 or 19 in full-time education, individuals under 25 receiving funding from the Education and Skills Funding Agency, foreign language assistants registered with the British Council, live-in carers for someone who is not their partner, spouse or child under 18, and diplomats.
Households uncertain about their eligibility for either reduction are encouraged to check their status and apply through the official Gov.uk portal.
