Universal Credit claimants urged to claim Council Tax discounts ‘straight away’

UNIVERSAL Credit claimants are being urged to claim a discount on their council tax “straight away” to cut down their outgoings.

Low income households on certain benefits are entitled to money off – in some cases up to 100% – the tax to ease the financial burden.

Council tax bills will rise for millions of households from April

Millions of families will see bills rise by up to 5% in April after the Treasury gave the green light for the tax hike in last year’s spending review.

The price hikes could see over £100 a year added to payments.

The Government advises those who may be entitled to a discount to claim it as soon as possible.

A warning on Gov.uk says: “If you are claiming Universal Credit for the first time we would advise you to apply for Local Council Tax Reduction (LCTR) straight away, as many local authorities will not backdate it for you.”

How to check your council tax bill and whether it’s going up

MANY local authorities will be hiking council tax bills from April – here’s how to check if you’ll be paying more.

You’ll first need to find out what council tax band your home is in to work out how much you have to pay.

This can be done on Gov.uk for homes in England an Wales, or on the Scottish Assessors website if you live in Scotland.

You’ll need to enter in your postcode and scroll through the listed addresses to find yours.

Local councils must contact you directly to let you know if your bill is going up or down, for example, via a letter or email.

If you still haven’t heard from your council, you should contact them directly.

The contact details of your local council can be found on the Gov.uk postcode checker.

The coronavirus crisis has pushed millions of more people onto the benefits system in the past year as businesses and employers have been forced to close.

As of January 2021, six million Brits were on Universal Credit, up from 2.8million in the some month a year earlier, according to Government stats.

Sara Willcocks, head of external affairs at poverty charity Turn2Us, said: “It is so important for people to get all the support they are entitled to before rates go up in April.

“Carers, students, single adults and people with disabilities are all eligible for money off their council tax bills.

“In addition to Council Tax Discounts, you might also be able to get other forms of Council Tax Support.”

Who can get a council tax discount?

Each council runs its own reduction scheme so how much your discount is worth depends on where you live.

Your circumstances will also have an effect on your discount, such as your earnings, households income, number of children you have and how many people live with you.

Your residency status and what benefits you’re entitled to will also have an impact.

You may be able to get a council tax reduction in certain circumstances even if you’re not on a low income, Universal Credit or benefits.

Those living on their own can get 25% off their tax bill. This includes where one adult and one student are living together, or one adult and one person who is classed as severely mentally impaired.

If you live with someone who officially doesn’t have to pay council tax, such as a carer, or someone who is severely mentally impaired, you can get 50% off.

If you live in an all-student household you can get 100% off your council tax.

A full reduction is also possible in households where someone under 18 is living with someone who is severely mentally impaired.

For the a full list of circumstances that exempt you from paying council tax can be found on Citizens Advice.

How to apply for a council tax discount?

You can apply for a council tax discount through Gov.uk – there’s a different scheme you’ll need to apply to if you live in Northern Ireland.

Applicants will need their National Insurance card, bank statements, a recent payslip or a letter from the Jobcentre or Tax Credits showing your NI number, and a passport or driving licence at the ready.

If you live with other adults, then they may also have to provide documents showing their income, such as payslips.

You might also be able to get £150 off your council tax bill due to the coronavirus crisis.

The council tax hardship fund, which was first announced in March, is available to working-age people who get council tax support.

You’ll get the reduction through your local council.

What if I think I’m overpaying tax?

You might find that you’re already paying more for your council tax anyway even before the price hike, according to Martin Lewis.

The consumer guru urged Brits to check their council tax band last month to see if they’ve been paying more than they should be.

As many as 400,000 homes are potentially in the wrong council tax band.

Martin tweeted a guide on how to check if you’re paying the right amount.

The first step is to check what council tax band your neighbours are on – you can then see if it matches your band.

Finally, you’ll also need to work out how much your property was worth in 1991, as this is when council tax was launched by the government.

MoneySavingExpert has a free calculator tool to help you do this, as well as a table on what band you should have been put in.

If you want to go ahead with a challenge, you can contact the Valuation Office Agency (VOA) in England and Wales or the Scottish Assessors Association (SAA) in Scotland.