Martin Lewis, the founder of Money Saving Expert, has shed light on a valuable yet underutilised scheme that could help individuals with severe medical conditions save hundreds—or even thousands—on their Council Tax bills. Known as the Severe Mental Impairment (SMI) discount, this scheme offers eligible individuals a 100% reduction in Council Tax if they live alone, or a 25% discount if they live with another adult.
Despite its potential to provide significant financial relief, many eligible households remain unaware of the SMI scheme. Martin Lewis highlighted its importance on his ITV show, stating:
“A severe mental impairment—horrible term, not mine—is defined as [impact on] intelligence and social functioning which appears to be permanent. To qualify, it must be medically certified, you need a doctor to sign this.”
This article explores how the scheme works, who qualifies, and the steps to claim this vital support.
How the SMI Discount Works
The Severe Mental Impairment (SMI) discount is designed to help individuals whose medical conditions permanently affect their ability to manage day-to-day tasks and social interactions. Eligible individuals can receive either:
- A 100% Council Tax exemption if they live alone.
- A 25% discount if they live with one other adult.
Martin Lewis explained the types of conditions typically covered by the scheme, stating:
“It is common with severe dementia, strokes, severe Parkinson’s, brain injuries, or other conditions. Those are the type of condition that will get an SMI.”
The scheme applies across England, Wales, and Scotland, but eligibility requirements vary slightly. For example, in Scotland, individuals must be eligible for a qualifying benefit, even if they are not actively claiming it.
To qualify for the SMI discount, individuals must meet two key criteria:
- Medical Certification: The condition must be medically certified by a doctor as permanently affecting the individual’s mental capacity.
- Qualifying Benefit: The individual must be receiving, or eligible for, a benefit such as:
- Attendance Allowance (commonly underclaimed).
- Disability Living Allowance (DLA).
- Personal Independence Payment (PIP).
- Severe Disablement Allowance.
- In some cases, Universal Credit.
Lewis also highlighted that families of those unable to claim for themselves should step in to help. He stated:
“A common one is someone with an SMI is living with their partner, so the 25% discount is the most probable one there.”
Claiming the Discount
Applying for the SMI discount is a straightforward process, but it requires documentation to confirm eligibility. Here’s what you’ll need to do:
- Obtain Medical Certification
- The individual’s doctor must certify that they have a severe mental impairment that permanently affects their intelligence and social functioning.
- This step is essential for securing the discount.
- Provide Proof of Benefits
- Supply evidence of the qualifying benefit(s) the individual receives or is eligible for. This could include letters confirming payments from the DWP or details of eligibility.
- Contact Your Local Council
- Each local authority handles Council Tax reductions, so you’ll need to apply directly through your local council. Many councils have dedicated teams or online resources to guide applicants.
Martin Lewis’ Money Saving Expert website offers a detailed guide on how to claim the SMI discount, along with links to council contact pages.
Additional Support for Disabled Households
If an individual doesn’t qualify for the SMI discount, there are other ways to reduce Council Tax bills. For example, the Disabled Band Reduction Scheme helps households where modifications have been made to accommodate disabilities, such as wheelchair access or a larger property due to medical needs. Under this scheme, properties may be placed in a lower tax band, reducing the annual bill.
Martin Lewis stressed the importance of checking all potential avenues for financial relief, especially as many support schemes are underutilised.
Why It’s Essential to Act Now
Many households eligible for the SMI discount remain unaware of its existence, leaving valuable financial support unclaimed. This is particularly significant as Council Tax bills continue to rise, adding pressure to families and individuals already facing the challenges of living with severe medical conditions.
For those affected, the SMI discount can provide much-needed financial relief, reducing household expenses and freeing up resources for other essentials. Martin Lewis urged viewers to spread the word, stating:
“If you know someone in that situation who can’t claim for themselves, help them apply. It could make a huge difference to their lives.”
By taking the time to check eligibility and apply, individuals and families can secure meaningful support that eases financial burdens and improves their quality of life. Don’t miss out on this opportunity—contact your local council and explore how these schemes can help today.
