Who is entitled to council tax rebates when prices go up?

The County Councils Network (CCN) announced earlier this year that three-quarters of England’s social care councils are planning a 5% increase from April.

This would cost average Band D households an additional £100 a year.

Councils can do so after Jeremy Hunt’s budget announcement gave them the power to raise prices by 5% without holding a referendum. Previously, they were only allowed to increase the municipal tax by up to 2%.

But is there a way to save money on council tax?

Who can save on council tax?

Depending on your circumstances, there are three different ways you can save money on your council tax.

These include:

• Eligible discounts – for example for a single person
• Council Tax Reduction (CTR) on low incomes.

What municipal tax reductions are there?

A common reason someone might be eligible for a discount is if they live alone.

If you’re the only adult in your household, you get a 25% discount on your council tax bill.

According to Citizens Advice, disregarded people include:

• Persons under the age of 18 (school or college graduates aged 18 or 19 who left after April 30 will not be considered until November 1)
• Everyone who is 18 or 19 years old and one person is entitled to child benefit
• Full-time students (undergraduate or postgraduate studies)
• A person aged 19 or younger in a pre-degree course – for example A-Levels or GNVQ Level 3
• student nurses
• A young person in a government training program
• People doing some kind of training
• A foreign language assistant in the official program of the British Council.

Other unaccounted for are people who are considered temporarily away from home – these may include long-term hospital patients, nursing home residents and prison inmates.

People with a learning disability or severe mental impairment – for example dementia – are also exempt from municipal tax. You will need a doctor’s note and must apply for some form of benefit, including Universal Credit or Income Support.

You get a 50% discount on your bill if everyone else in your household is discounted.

Who is eligible for a Council Tax Reduction (CTR)?

You might be eligible if you have low income or are claiming benefits. Your bill could be reduced by up to 100%.

The amount you save depends on:

• where you live – each municipality operates its own system
• Your living conditions (e.g. income, number of children, benefits, residence status)
• Your household income – this includes savings, pensions and your partner’s income
• if your children live with you
• if other adults live with you.

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