Households could save thousands of pounds a year through a much overlooked discount scheme, according to Martin Lewis. The consumer champion urged people to check if they are eligible for the "massively undercommunicated" scheme, on his BBC podcast.
With the average Band D council tax bill in England sitting at £2,392 per year, cashing in on some savings here can make a big difference. You could get a range of discounts through a much under appreciated scheme, up to a full 100 per cent exemption, with nothing to pay.
Listener's question sparks advice
The issue came to light after a listener to the podcast asked a question about their living setup. They explained they were living with and caring for their father while receiving Carer's Allowance, with the father claiming Attendance Allowance (a non-means-tested benefit for people of state pension age requiring daily support). The listener wanted to know if their situation qualified them for a reduction.
Mr Lewis confirmed they might well qualify. He said: "If there's only the two of you in the household, I would think you're entitled to at least a 25 per cent discount if your father has a severe mental impairment. Now, the fact he gets Attendance Allowance signifies to me there's quite a chance he would be due a severe mental impairment (SMI) discount."
How to prove severe mental impairment
Mr Lewis went on to explain how you prove you have an SMI, to secure the reduced bill. He said: "It is about a doctor certifying that you have a severe mental impairment that affects someone's social functioning. So if a doctor will sign that off—'cause just getting Attendance Allowance doesn't mean you get SMI, you need it to be signed as an SMI—well, then you're certainly entitled to a 25 per cent discount and possibly entitled to a 50 per cent discount if you're a carer in the right circumstances."
To get an SMI discount applied to your case, you will need to contact your local council directly and complete their specific form. Mr Lewis said that applicants should make sure to "tick the getting a qualifying benefit" section when filling out the form.
Qualifying conditions and benefits
To get the discount, you will need to be certified by a doctor that you have a severe mental impairment. A range of conditions may mean you are eligible, such as having dementia, including Alzheimer's, Parkinson's, severe learning difficulties or complication from cerebral palsy or a stroke.
You also must be receiving a qualifying benefit. These 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), Armed Forces Independence Payment.
Discount amounts
You can get a 100 per cent discount on your council tax bill if either: you live on your own, or any other adults in your household either qualify as severely mentally impaired or are full-time students. You could get a 50 per cent discount if everyone else in your household is classed as 'disregarded' for council tax purposes. You could get a 25 per cent discount if you live with someone who has an SMI and either there are no other adults in your household or everyone else in your home is disregarded.
