Martin Lewis has warned that millions of households are missing out on up to £1,500 in discounts off their bills. He said people on DWP benefits often misunderstand the rules and so miss out on what they are entitled to.
Speaking on his BBC podcast, the financial journalist discussed Council Tax Support, bespoke schemes run council by council, providing discounts to people on low incomes, such as those on DWP benefits. Mr Lewis said it is definitely worth checking if you qualify, as you can get up to £1,500 through these schemes.
No standard definition
Mr Lewis told his listeners: "This is separate from discounts. Every council runs its own council tax reduction scheme, so what you get depends on where you live. There's no standardised definition, and there's no standardised amount that you get reduced."
He said in some cases you can get a 100 per cent reduction of your council tax bill, so you don't have to pay a penny. Yet there is a "jungle of variation" as the qualifying rules vary widely.
'Totally separate' systems
DWP claimants on low-income benefits may well be eligible, but you need to take action to secure the discounts. Mr Lewis warned: "The biggest mistake people make about this is they think, 'If I'm eligible for Universal Credit' - which is, you know, the catch-all national benefit - 'then I'll automatically get my council tax support'."
But this simply is not the case. Mr Lewis clarified: "They are totally separate systems. You have to apply for council tax support separately. Now, the people who are likely to get it are those people who are on Universal Credit or Pension Credit, but you won't get it automatically, and that's why so many people miss out."
How do I claim Council Tax Support?
Mr Lewis shared some more general rules about how to find out if you are eligible and get in your application. You will need to check with your local council what the exact qualifying rules are.
You can find their details through the gov.uk website by providing your postcode. Mr Lewis said you may need to "provide evidence" as part of the application.
Some particulars you may need to provide include:
- Your identity
- Your income
- Your savings
- Your rent or mortgage payments.
Get on the case
One fan of the show sent in a question as they were struggling to get the details for their particular council's scheme. They said that both they and their daughter were on a low income and were on Universal Credit.
They had got in touch with their council to ask if they could get any discounts, but had not had any reply to date. The frustrated pair asked Mr Lewis what they should do.
The consumer expert had a simple suggestion for them. He said: "Get in touch with them and persevere."
