Martin Lewis has urged households to check whether they could save up to £1,500 on their bills. The money-saving guru shared some tips about the discount scheme on his BBC podcast. He said that those claiming benefits such as Universal Credit and Pension Credit may be eligible.
Council tax support explained
The financial expert shared a wide range of tips regarding council tax and how to potentially reduce your bill. One initiative he was particularly keen to highlight is council tax support. He said that up to 2.25 million people on lower incomes could be missing out on savings worth up to £1,500 through the scheme.
Mr Lewis broke down how the scheme works: "This is separate from discounts. Every council runs its own council tax reduction scheme. What you get depends on where you live, there is no standardised definition." He said that some councils will slash your bill by 100 per cent through their individual schemes.
The consumer champion cautioned that the "biggest mistake" people make is assuming that eligibility for Universal Credit automatically qualifies them for the support — which is not the case.
You have to apply separately
Mr Lewis stressed: "They are totally separate systems. You have to apply for council tax support separately. 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."
He directed listeners to the gov.uk website, where you can find the contact details for their local council, to find out whether a scheme is available in their area. When submitting your application, you may be required to supply proof of a low household income or provide information about your rent or mortgage payments.
Mr Lewis said: "If you're generally someone who is on Universal Credit or who is on a lower income, you should check out your council's criteria for council tax support." The expert noted it's worth investigating as the scheme can be worth "big money".
Keep trying with your council
One listener said they had contacted their local authority to enquire about what assistance they could get, as they are on a low income. Yet they had received no response. Mr Lewis encouraged them to "get in touch with them [the council] and persevere".
Another query came from a benefit recipient who was receiving the support from their local authority, yet their council tax bill rose 25 per cent when they transferred to Universal Credit. Mr Lewis explained this was probably because they had been on a legacy benefit, one of the older benefits superseded by Universal Credit, and when they switched to Universal Credit, their entitlement decreased. Many people in this position receive a transitional protection payment, supplementing their benefits to match their previous entitlement.
However, as this top-up can be classified differently from your benefit payment, this can influence the level of discount you receive through the support scheme. Once again, it's best to check the specific rules with your local council.
Mr Lewis blasted the current complexities of the system. He said: "It's crackers, but that's just how it works." He noted there is regrettably a "postcode lottery" regarding how the support scheme works, as different regions have varying criteria.
