More than 462,000 households in Scotland are receiving a Council Tax Reduction (CTR), with support worth an estimated £8.9 million each week. This works out at an average reduction of around £19 per household per week, or just over £1,000 across the full financial year.
The actual amount someone receives depends on individual circumstances, but in some cases a Council Tax Reduction can cover up to 100 per cent of the bill. Crucially, people do not necessarily need to be receiving benefits to qualify.
Who is eligible for support
Advice Direct Scotland, which runs the free moneyadvice.scot service, is encouraging people struggling with payments to check whether they could qualify. Craig Tobin, head of business development and impact at Advice Direct Scotland, said: "It's harrowing to hear from people distressed over Council Tax debt. This year's Council Tax increases have placed further pressure on individuals and families already struggling with rising energy bills and the cost-of-living crisis.
"Demands for payment and threats of enforcement over Council Tax debt can make money worries even more stressful. That's why it's so important to make sure you're receiving all the financial support you're entitled to."
Exemptions and discounts to consider
You will not pay Council Tax if you are a full-time student, in the Armed Forces in Forces accommodation, live in a care home or hospital, or if your home is unoccupied and empty for up to six months. A severe mental impairment such as dementia can also lead to exemption.
If you live alone, you could get a 25 per cent reduction regardless of financial circumstances. Those living with someone under 18, full-time students, student nurses or some apprentices may also pay less. Carers who look after someone for at least 35 hours per week and meet additional criteria may be disregarded for Council Tax purposes.
You may also get your home moved to a lower band if it has decreased in value, for example due to home adaptations for a disabled person or a motorway built nearby. A room dedicated to equipment used by a disabled person daily could also lower the band.
How to apply and manage arrears
You may be eligible for a Council Tax Reduction if you are on a low income or claiming certain benefits. Each local council operates its own scheme, so the amount of support may vary. Factors include which benefits you receive, your age, income, savings, who you live with, and how much council tax you pay.
If you receive the Guarantee Credit part of Pension Credit, you may get your Council Tax paid in full. Those on a low income with less than £16,000 in savings may still get some help.
Most Council Tax bills are paid over 10 months, but this can be changed to 12 if you agree to pay by Direct Debit. Even in November, those on the 10-month plan due to finish in January can ask for the schedule to be extended to March.
Advice Direct Scotland urges anyone who has missed a Council Tax payment to contact their local authority as soon as possible. Councils have powers to recover unpaid Council Tax, including taking money from wages or bank accounts. Free support is available through moneyadvice.scot or by calling 0808 196 2316.
