Council tax won’t go up – but future of single person’s discount uncertain

If you live on your own, you can currently benefit from a single person discount on council tax.

You can apply to save 25% if you’re the only person in your house who’s at least 18 and eligible to pay council tax. Students, single parents and widowed pensioners can all benefit from the discount as they usually have a lower income.

But that could all change, as the deputy prime minister hasn’t committed to keeping the discount.

In the House of Commons on Monday, Angela Rayner avoided answering when asked if Labour would guarantee keeping the discount.

We don’t know if this means that the discount will definitely be scrapped – although Rayner at least did confirm the government would not be increasing council tax.

If the 25% discount is scrapped, you could be looking at an extra £242-£636 on your council tax bill, depending on where you live.

What is council tax?

Council tax is a fee charged by your local authority for public services, like bin collections, and police and fire services. Each council decides how much to charge.

Most people over the age of 18 have to pay it unless they’re ‘disregarded’, though they still need to apply for a discount or exemption.

You get a full council tax bill when your household has two adults or more adults.

Who’s disregarded from council tax?

Those who don’t have to pay council tax include:

• anyone under 18
• some apprentices
• anyone who is 18 or 19 and in full-time education
• full-time college or university students
• those under 25 who get funding from the Education and Skills Funding Agency
• student nurses
• foreign language assistants registered with the British Council
• those with severe mental impairments
• live-in carers for someone who isn’t your partner or child under 18
• diplomats

Can I get a discount on my council tax?

If you live on your own, or if everyone else in your home is disregarded, you’ll get a 25% discount.

If everyone in your home is disregarded (including you), you’ll get 50% off your bill.

A household of full-time students doesn’t have to pay council tax.

You might also be able to get a reduced council tax rate – sometimes up to 100% – if you’re on a low income or get benefits.

How is council tax worked out?

The amount you pay depends on which band you fall under. Bands are based on your house value – in England and Scotland, they’re based what your home was worth in 1991 (it’s different in Wales and Northern Ireland).

For example, if your home was worth £35,000 in 1991, you’d be in Band A in England; if you live in Scotland, this would put you in the second band, Band B.

You can check your banding on the government website and you can challenge it if you think it’s wrong, but you’ll need evidence to back your claims up.

Can paying council tax be more affordable?

Council tax is usually paid across 10 months, but if this is too expensive, most councils will let you spread payments over 12 months instead. Ask your council if this is possible.

What happens if I don’t pay my council tax?

Council tax is a priority debt, meaning there’s serious consequences if you don’t pay it, such as being sent to prison.

If you’re struggling to pay or falling behind, get in touch with your council as soon as possible. Our council tax guide covers this in more detail.

It might be time to ask for help

If you’re struggling to pay your council tax, you might be finding it hard to cover your other outgoings too. We’re here for you – ask us for free debt advice today.