Council tax is one of the significant ongoing expenses for households across the UK, impacting many families’ budgets. Recent reports from the Daily Record have highlighted how the rising cost of living has made it increasingly difficult for some to keep up with these payments. Fortunately, there are various avenues available that can help alleviate this burden.
For instance, some individuals may qualify for a reduction of up to £850 annually through the Council Tax Reduction (CTR) scheme. This article will examine how the CTR scheme works and explore additional discounts and exemptions that could ease the financial pressure for eligible households.
Understanding the Council Tax Reduction Scheme
The Council Tax Reduction (CTR) scheme is a government initiative that aims to help those on low incomes reduce their council tax bills. Launched in 2013, the scheme has provided crucial financial relief to many households. In July, 458,320 households received reductions, collectively saving around £8.2 million in weekly support. This means a significant number of people are benefiting from the scheme, but many others may still be missing out.
One of the main benefits of this scheme is that it can lower your council tax bill by up to 100%, depending on your household’s income, savings, and personal circumstances. For example, if you live alone, you could qualify for a 25% discount, regardless of your income. Even if you don’t receive other benefits, you might still be eligible if you’re on a low income and have savings below £16,000.
John Baird, head of debt services at Advice Direct Scotland, pointed out the growing pressure on families, saying: “We know this year’s Council Tax increases have put even more pressure on individuals and families already struggling with rising energy bills and the cost of living crisis. We’ve seen unprecedented demand for our services, and it’s heartbreaking to see people distressed over council tax debt. Demands for payment and threats of enforcement can make money worries even more stressful.”
If you’re unsure whether you qualify, you can check your eligibility online at mygov.scot or by contacting your local council directly.
Additional Discounts and Exemptions
In addition to the CTR scheme, there are several other ways to reduce your council tax bill. For example, if you live with someone who is under 18 or a full-time student, you won’t be counted for council tax purposes. Full-time students and certain apprentices are exempt from council tax entirely.
You may also be eligible for discounts or exemptions if you are a carer. If you care for someone in your household for at least 35 hours per week, and meet additional criteria, you may be disregarded for council tax purposes. People with severe mental impairments, such as dementia, are also considered for exemptions, but the rules vary depending on who else is living with you.
Another option for reducing your bill is if your home’s value has changed significantly. For instance, if you’ve made home adaptations for a disabled person or if a nearby development has lowered your property’s value, you may be eligible for a council tax band reduction.
The Council Tax Reduction scheme has been beneficial for many, but the number of recipients has been slowly declining. Since the scheme’s launch in 2013, the number of recipients has fallen by 94,000 households—a 17% decrease. In December 2022, the number of people receiving reductions hit a record low of 454,180 households.
How to Deal with Council Tax Arrears
If you’re behind on your payments, it’s crucial to act quickly. Council tax arrears are classified as a “priority debt”, meaning they must be addressed before other debts to avoid severe enforcement actions, like bank or wage arrestment. If left unresolved, it could even risk your home or tenancy agreement.
John Baird emphasized the importance of managing council tax debt: “We’ve seen unprecedented demand for our services, and it’s heartbreaking to see people distressed over council tax debt. Demands for payment and threats of enforcement can make money worries even more stressful.”
If you’re struggling to make payments, contact your council to request a payment plan. Councils are often willing to work with you to ensure you don’t face harsh enforcement measures.
Payment Flexibility
In addition to discounts, there are options to change how you pay your council tax. If paying over the typical 10 months feels too tight, you can ask to have your payments spread over 12 months to make it more manageable. Alternatively, some councils offer discounts to those who can pay the full bill upfront. It’s always worth checking with your local authority to see if such options are available.
Local Authorities Offering Support
If you’re eligible for a reduction or exemption, you can apply through your local council. Below is a list of councils in Scotland where you can apply for Council Tax reductions or discounts:
- Inverclyde
- Renfrewshire
- West Dunbartonshire
- East Dunbartonshire
- Glasgow
- East Renfrewshire
- North Lanarkshire
- Falkirk
- West Lothian
- Edinburgh
- Midlothian
- East Lothian
- Clackmannanshire
- Fife
- Dundee
- Angus
- Aberdeenshire
- Aberdeen
- Moray
- Highland
- Na h-Eileanan Siar
- Argyll and Bute
- Perth and Kinross
- Stirling
- North Ayrshire
- East Ayrshire
- South Ayrshire
- Dumfries and Galloway
- South Lanarkshire
- Scottish Borders
- Orkney
- Shetland
It’s essential to check if you qualify for any of the reductions or exemptions available. The earlier you apply, the sooner you can benefit from financial relief. For guidance, you can contact Advice Direct Scotland at 0808 196 2316 or visit their website at www.moneyadvice.scot
