Millions may not realise they’re entitled to the support as it follows a completely separate application process
Up to 2.6 million households are missing out on council tax support according to Money Saving Expert as the experts issued an alert to people in the latest newsletter urging them to check their eligibility. This support reduces the amount of council tax a household is liable to pay and on average offers £1,300 a year.
Exactly how much a household can have taken off their council tax bill through this support will differ depending on the area they stay in as each council runs its own scheme. However, it can cut the bill by up to 100% which could mean thousands in savings for low income households struggling to make ends meet.
It doesn’t matter if you rent or own your home, you could still qualify for council tax support. However, your income, number of people in the household, other benefits and residency status can affect your eligibility.
For example, in the London borough of Camden, residents receive a certain discount depending on their weekly income and the number of children they have. This can range from 65% of their bill for those with children earning up to £221.59 per week down to 15% council tax discount for those earning between £548.46 and £623.25 per week.
Some people may also be able to use other reductions in council tax. A few MSE readers reported being able to get the 25% single person discount in addition to a low-income reduction on their council tax bill. There may also be different rules if you or your partner have already reached state pension age, according to Citizens Advice.
While each council will have its own specific eligibility criteria too, generally people who qualify for benefits like Universal Credit or Pension Credit and live in England, Scotland or Wales could be entitled to the support.
The support is not automatic, which may see many people missing out simply because they don’t know they need to or how to apply. Those in England and Wales can find their council’s details on the Gov.uk website to find out more while those in Scotland will need to use the Mygov.scot service.
Applicants may be asked for proof that they are eligible for this support which can include evidence of their identity, income, rent or mortgage payments. People who receive the reduction will need to inform the council if any changes in circumstances occur that could make them ineligible.
Citizens Advice also recommends applying for the support as soon as you believe you could be eligible, even if you don’t meet the eligibility criteria just yet. The experts noted: “If you’re eligible for CTR, it’s best to apply as soon as you can.
“You can apply early if you know when you’re going to be eligible. If you apply early, you won’t have to wait as long to get CTR when you become eligible.”
Some people may also be able to backdate their reduction. For example, if they didn’t realise they had been eligible for the reduction for a while or had a good reason for not applying earlier such as being ill, although the rules and restrictions around this will depend on the local council.
Citizens Advice recommended highlighting if you may be eligible for a backdated payment on the application form. It suggested: “The form might have a section about backdating – it’s sometimes called a ‘late application’. If there isn’t a section about backdating or late applications, write on a separate piece of paper and send it to the council with your form.”