Council tax: four legitimate ways to cut your bill

Council tax arrives as one bill for the whole household, and most people pay it in full simply because they do not know the discounts exist. There are several, they are independent of each other, and some of them take the bill to zero. Here is what they are and who qualifies.

Who has to pay council tax

Adults aged 18 or over usually pay. A full bill assumes at least two adults live in the home. Partners who live together are jointly responsible for it.

The 25% single person discount

This is the best known and most often missed discount: if you live alone, your bill is reduced by 25%. It is not applied automatically — you have to ask your council for it.

Who is not counted as an adult

Some people are "disregarded" — they are not counted when working out how many adults live in a home. GOV.UK lists: under-18s; some people on certain apprenticeship schemes; 18- and 19-year-olds in full-time education; full-time college or university students; under-25s funded by the Education and Skills Funding Agency; student nurses; foreign language assistants registered with the British Council; people who are severely mentally impaired; live-in carers looking after someone who is not a partner, spouse or child under 18; and diplomats.

What that means in money: if everyone in the household is disregarded, the bill is cut by 50%. If you pay the bill and either live alone or everyone else in the home is disregarded, it is cut by 25%.

Being disregarded does not switch the discount on by itself — you still have to apply.

What full-time students get

Households where everyone is a full-time student do not pay council tax at all. If a bill still arrives, you apply for an exemption.

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A course counts as full-time if it lasts at least 1 year and involves at least 21 hours of study a week. For qualifications up to A level, if you are under 20, the threshold is lower: at least 3 months and at least 12 hours a week.

If even one adult in the home is not a full-time student, a bill will arrive. The household may still qualify for a discount under the disregarded rules above.

Disability discounts

The Disabled Band Reduction Scheme works separately. Where it applies, the property is charged at the next lowest band — Band D is billed at the Band C rate, for example. If the home is already in Band A, you get a 17% discount instead.

The conditions: you live in a larger property than you would need if no occupant were disabled; you can show an extra bathroom, kitchen or other room needed for the disabled person, or extra space inside for using a wheelchair; and the property is the main home of at least one disabled person, adult or child, who does not have to be the person paying the bill.

Severe mental impairment has its own rates: a 100% discount if the person lives alone, or if the other adults are also severely mentally impaired or are full-time students; 50% if everyone else in the household is disregarded; and 25% if you live with such a person and there are no other adults, or everyone else is disregarded. You will need a certificate from a medical professional, such as your GP, and proof of eligibility for certain benefits.

Council Tax Reduction: help based on income

This is a separate mechanism from all of the above. You can apply if you are on a low income or claim benefits — whether you own your home or rent, and whether you are working or not. The bill can be reduced by up to 100%.

How much depends on where you live, because every council runs its own scheme. It takes into account your household income, including savings, pensions and your partner's income, whether children live with you, whether other adults live with you, and your residency status.

You apply to your local council, which you can find by postcode on GOV.UK. Northern Ireland has a separate scheme, through nidirect.

What to do now

Check three things in order: whether you live alone (25%), whether anyone in the home falls into the disregarded list, and whether you qualify for Council Tax Reduction on income. All three are free to check and go to the same local council.

ONLYWAY NEWS notes that none of these discounts applies itself. The bill stays full until you claim one.