Thousands of Britons could be missing out on a council tax discount worth hundreds, if not thousands, of pounds. The "severely mentally impaired" (SMI) discount can reduce a household's council tax bill by 25% to 50% or result in a complete exemption.
Severe mental impairment involves a permanent loss of intelligence and social functioning. It can be caused by conditions such as dementia, Alzheimer's disease, severe learning difficulties, or strokes.
Qualifying for the Discount
There are two main requirements to qualify for the discount or exemption. First, a doctor or GP must sign a certificate confirming the severe impairment. Second, the person must be eligible for, or in receipt of, a benefit such as Attendance Allowance, Disability Living Allowance, or Personal Independence Payment (PIP).
The size of the discount varies. Those who live alone get 100% off; someone living with an adult carer can get a 50% reduction, and a person living with one qualifying adult may be entitled to 25% off. A person with SMI who lives with two or more qualifying adults is not eligible for the discount.
Examples of Payouts
According to Money Saving Expert, payouts can run into the thousands. The consumer website cited several examples in which its advice led to successful claims. One man's 98-year-old mother, who MSE said has vascular dementia, saw her council tax bill slashed to zero and was awarded a £15,000 backdated payout.
To check if you can claim, you should contact your local authority. Claim forms should be available on council websites or sent by post. Some councils require written proof of medical diagnosis of SMI as part of the claim, while others ask for your doctor's details. Not all councils will backdate claims, so you should ask to make sure.
Appealing a Rejection
If your council rejects your application and you want to appeal, there is a process for doing so. It varies depending on where you live. In England, you should first appeal to your council, and if they continue to reject, then contact the Valuation Tribunal Service.
In Wales, the council should send you a form to make your appeal, which should be sent to the Valuation Tribunal for Wales. Scots should appeal to their council, which will refer it to the local Valuation Appeal Committee if the dispute isn't resolved within two months or they haven't responded within that time. You will need to have written to your council to let them know you want to appeal to the Committee and to have sent that within four months of first appealing.
Benefits That Qualify
Benefits that can qualify include Armed Forces Independence Payment, Attendance Allowance, Constant Attendance Allowance, Disability Living Allowance (higher or middle-rate care component), Incapacity Benefit, Income Support (which includes a disability premium), Increase in Disablement Pension (due to constant attendance being needed), Personal Independence Payment (standard or enhanced daily living component), Severe Disablement Allowance, and Unemployability Supplement or allowance.
In England and Wales, a person can also receive Disability Working Allowance (based on receiving income support, such as disability premium), and Universal Credit (including an element for limited capability for work or limited capability for work and work-related activity). In Scotland, these benefits can apply too: Employment and Support Allowance, Tax credits (including the disability element), and Universal Credit.
