Council tax is set to increase in April so pensioners are urged to check if they qualify for a reduction on their bill. As the cost of living crisis continues many families may be feeling the crunch.
Pensioners are one of the most vulnerable groups who may be feeling the financial squeeze so any discounts and reductions could be vital for the upcoming months.
Council tax is increasing by five percent in many parts of England from April and many councils in Scotland are also increasing their council tax by a similar amount.
Many people on low incomes may be eligible for council tax support to help pay their council tax bill.
Laura Suter, head of personal finance at AJ Bell, discussed potential council tax moves in 2023 and their implications.
READ MORE: Britons warned of ‘household habit’ adding hundreds to your energy bills each year
She said: “If rates increase by five percent, it means the average Band D property in the UK will pay £2,064 a year for council tax.
“This is an increase of almost £100 on 2022’s bills.”
There is no set amount of council tax support. What people get depends on their circumstances and where they live.
People may get more council tax support if they receive a disability or carers benefit.
Each local council is responsible for operating its own council tax support scheme so the amounts of support given across the country may vary.
Wherever people live, the amount of council tax support they get depends on many factors, including:
- which benefits they receive
- their age
- their income
- their savings
- whom they live with
- how much council tax they pay.
If someone is not over state pension age, the council tax support they’re entitled to is worked out under “working age scheme” rules.
Britons can check these rules with their local council. Citizens Advice explains those awarded a reduction do not normally get an actual payment.
Instead, the council reduces the amount of tax the individual is required to pay. The charity also encourages Britons to look at which council tax reduction rules apply to their circumstances.
If a person has reached state pension age and does not receive the following benefits, then “pension age” rules apply:
- Universal Credit
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
People in England and Scotland can challenge their tax band with the potential to get back payments as far back as when the current band system was set up, in 1993.
If a person suspects they are overpaying for their council tax and should be put in a lower band, the first step is to compare their property to neighbours with a similar property.
An individual does not need to approach their neighbours to find this out as they can check online.
This can be done via the Valuation Office Agency website for properties in England and Wales and through the Scottish Assessors Association website for homes in Scotland.
When a property’s tax band is reassessed, it could result in a whole street being moved up or down, so a person needs to be sure they should be put in a lower band and pay less tax.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
