Households in England, Wales and Scotland may be able to reduce their council tax bill to £0 if they or someone living with them has a qualifying health condition such as dementia or Parkinson's, under rules confirmed by the Labour Party government.
Reductions range from 25 per cent off the bill to the full 100 per cent of the charge. Martin Lewis, the BBC and ITV money expert, says there are two criteria to meet.
Qualifying Conditions and Certification
The first criterion is being medically certified as 'severely mentally impaired'. Lewis, 54, lists seven examples: dementia (including Alzheimer's), Parkinson's, severe learning difficulties, multiple sclerosis, complications from cerebral palsy, or after a stroke.
Lewis added: "This all depends on each person's individual case and be aware that simply having been diagnosed with one of these conditions doesn't automatically mean they qualify for the discount – a doctor must also certify they are 'severely mentally impaired'."
He noted that GPs are not allowed to charge for severe mental impairment certification.
Benefits Required for Eligibility
The second criterion is that the person must be receiving at least one of a set of qualifying benefits. In Scotland, being eligible for but not actually receiving the benefit can be enough, though it varies by council.
The qualifying benefits include Incapacity Benefit, Attendance Allowance, Severe Disablement Allowance, Disability Living Allowance (higher or middle-rate care component), Increase in Disablement Pension (due to constant attendance being needed), Unemployability Supplement or allowance, Constant Attendance Allowance, Income Support (which includes a disability premium), Personal Independence Payment (standard or enhanced daily living component) and Armed Forces Independence Payment.
Those in England and Wales may also qualify if they receive disability working allowance (based on getting income support, like disability premium), or Universal Credit (including an element for limited capability for work or limited capability for work and work-related activity). In Scotland, residents may additionally be eligible for or receiving tax credits (including disability element), Employment and Support Allowance and Universal Credit.
Reader Experiences and Impact
One MoneySavingExpert reader said: "My aunt received a refund worth over £7,000 and won't have to pay Council Tax again." The reader described her aunt as profoundly deaf since birth and now with dementia, at 96 and bed-bound, noting the refund would go towards getting her the support she requires.
A second reader said: "Thanks so much for the tip about this Council Tax discount, I'd never heard of it. My aunt, who has dementia, just received a refund from her council for £4,200." The same reader added that her aunt will be saving around £1,200 per year off her council tax bill, a significant sum for a 92-year-old with limited income.
