How much council tax could rise next year and where to get help if you’re struggling
HOUSEHOLDS could face punishing rises in council tax bills next year.
Chancellor Jeremy Hunt has announced plans to allow local authorities to increase council tax above the cap of 2.99 per cent.
Charities such as Citizens Advice are already warning that council tax is one of the areas where people are struggling the most.
We look at why bills are rising and how to get help now if you’re struggling.
WILL YOUR BILL RISE? The change announced in the Autumn Statement paves the way for local authorities to bring in larger rises in council tax next year to raise cash for social care.
The current rules mean councils need to hold a local referendum to increase it by more than 2.99 per cent.
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But they will now be able to bring in rises of up to three per cent without a public vote.
Every year, councils decide how much to increase council tax bills by.
Of course, the amount your bill will rise by is still being decided.
Confirmation of rises are usually shared at the beginning of the new financial year in April.
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The average cost for Band A properties in England is £1,310.
A five per cent rise would see it hit £1,375.
Band B pays an average of £1,529 — this would go up to £1,605 with the same rise.
The average council tax for Band C property is £1,747.
A five per cent rise would take bills to £1,834.
The average tax for a Band D home is £1,966.
This would reach £2,064 with this increment.
Sarah Coles from Hargreaves Lansdown said: “This is the biggest hike in council tax since 2018.
“By historic standards it’s not a massive rise: in the ten years between 1995 and 2005 council tax rises hit at least 5% a year – and in 2003 they were over 12 per cent.
“But given how much we’re seeing all our costs rise on all sides, this is the last thing we need.”
CAN YOU GET A DISCOUNT? People on low incomes or benefits such as Universal Credit may be able to get a discount on their council tax.
This can vary between councils, but you could be exempt from paying any council tax at all.
The schemes are means-tested, and will usually depend on your income and any children or adults living with you.
Single adults living in a property can get a 25 per cent discount on their bill.
This is for people of all incomes and applies if they are the only adult living in the property.
The discount also applies if they live with a young person aged under 18, or someone aged 18 or 19 in full-time education.
A reduction could also be applied if there is a disabled person living in the property.
This is known as a disabled person’s reduction and each council has its own criteria.
You may also get 50 per cent off your council tax if you live with someone who is severely mentally impaired.
CHALLENGE YOUR BILL: You could be paying too much council tax if your home is in the wrong property band.
Check which band your neighbours’ homes are in to see if you are paying too much.
You could save money if you appeal and are successful.
To appeal, contact the Valuation Office Agency (VOA) in England and Wales or the Scottish Assessors Association (SAA) in Scotland.
However, if you are not successful you could end up paying more if the council thinks you should be in a more expensive band.
ARE YOU DUE A REFUND? Households could be due money back after paying too much council tax.
Around 862,000 households are due refunds totalling £150million, Martin Lewis’s Money Saving Expert site recently revealed.
There are several reasons you could be owed a refund.
You might be eligible for a discount, the band you’re in may have changed, or you might still be unknowingly paying the tax on a previous property.
If you have moved home, check your council tax statements to see if you paid upfront, covering a certain timeframe after moving.
You’ll need to contact the council directly about a refund if you think you are owed money.
The reasons you could be due cash vary, so it’s worth a quick check of old paperwork, considering the amounts you could get back and the number of people affected.
WHAT HELP CAN YOU GET? Local authorities can offer you support with your council tax bill — but it varies depending on where you live.
Low-income households, or people receiving benefits, may be able to apply for help paying their bill.
This could come in the form of a part reduction, or you may find you don’t need to pay a penny.
If you’re worried about an existing debt, apply for council tax relief. Councils can reduce or totally wipe a council tax debt.
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Nearly £2.7million of council tax arrears were scrapped by local authorities over 2020 and 2021.
Once you have sent your Section 13A application to your local authority, you should be told about a decision within 14 days.