Martin Lewis has highlighted a council tax discount scheme that could save pensioners over £2,300 a year, calling it "massively undercommunicated." The programme offers a range of discounts depending on household circumstances.
Discounts worth up to 100%
On a "best bits" compilation of his BBC podcast, Lewis revisited advice on council tax. Many people may not realise they qualify for discounts, with reductions of 25% or more available. The average Band D council tax bill in England is now £2,392 a year, and in some cases, a 100% discount could apply, leaving nothing to pay.
A listener asked about living with and caring for their father, who receives Attendance Allowance, a non-means-tested benefit for people of state pension age needing help. Lewis said they may qualify for discounts, stating: "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."
Proving severe mental impairment
Lewis explained that a doctor must certify a severe mental impairment (SMI) affecting social functioning. He noted: "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 apply, contact your council and fill in their form. Lewis advised ticking the "getting a qualifying benefit" box on the application.
Qualifying conditions and benefits
To get the SMI discount, you must be certified by a doctor as having a severe mental impairment, including conditions like dementia, Alzheimer's, Parkinson's, severe learning difficulties, or complications from cerebral palsy or a stroke. You must also receive a qualifying benefit, such as Incapacity Benefit, Attendance Allowance, Severe Disablement Allowance, Disability Living Allowance (higher or middle-rate care component), Personal Independence Payment (standard or enhanced daily living component), or Armed Forces Independence Payment.
The discount can be 100% if you live alone or all other adults are severely mentally impaired or full-time students. A 50% discount applies if everyone else is 'disregarded' for council tax purposes, and a 25% discount if you live with someone with an SMI and no other adults or all others are disregarded.
