MILLIONS of households will see their council tax bill rise in April, and in some areas it could go up by as much as £200.
A handful of councils have been given the green light to raise the levy by as much 10% – more than the typical 5%.
AlamyThousands of households will see their council tax bills rise by as much as £200[/caption]
The government this week confirmed that most local authorities will be able to hike the essential bill by 5%.
This equates to £103 extra a year for the typical Band D property, which is currently £2,065.
But for certain areas handed special permission to hike them by more, the same annual bill could increase by £206.50.
Sarah Coles, personal finance analyst at Hargreaves Lansdown, said: “Given that the government isn’t planning to give local government any more money to keep up with inflation – it’s likely that a huge number will opt for the biggest possible increase.”
The national limit on how much council tax can be raised is set by the government every year, this is then applied to bills from April.
It’s then up to each local authority to decide if it will choose the maximum and some may decide to increase council tax by less.
The exact amount more households pay will also depend on which “band” the property is.
Bands are based on your home’s value – the more expensive the property, the more council tax will be charged.
Four councils have now been permitted to hike bills by as much as 10%: Thurrock, Woking, Slough and Birmingham.
Announcing the increases, communities secretary Michael Gove warned that all councils “implementing any additional increases, should take steps to mitigate the impact on those least able to pay”.
Councils are due to confirm by how much council tax bills will rise in the coming weeks – including those allowed to hike them by a higher percentage.
Ms Coles said: “Additional rises have been granted to Thurrock, Woking, Slough and Birmingham because their finances are in such a desperate state that they need the additional cash to continue.
“Given how prices have been rising, keeping council tax increases at 5% for the past two years has been very welcome for taxpayers, but has meant a horrible squeeze on council finances.”
She pointed out that it’s up to the councils in every case, and they could still opt for less than 10%.
The Sun reached out to each of the councils to see what their plans are for their budget this year.
Thurrock’s council tax rate is set to be confirmed officially on February 28.
It has however made proposals for a 7.99% increase – made up of a 5.99% council tax rise plus a 2% adult social care precept increase.
Birmingham City Council said nothing has been agreed yet, and its budget proposals have not yet been published – these are expected within the coming weeks.
Woking is expecting its council tax setting to take place on March, 4.
A spokesperson for Slough Borough Council said: “Our council tax increase for the coming year has not been decided.
“The decision on any council tax increase will be made as part of our budget setting at public meetings.”
It’s important to bear in mind that each council sets their own rates and that what residents actually pay is determined by your council tax band.
Check how much your council tax bill will go up by
Keep an eye on your council’s website for information on its budget plans for the 2024/25 financial year – which will include information on any rate hikes.
Check which council tax band your property falls under to work out how much the increase will cost you.
You can find your local authority by using the gov.uk search tool.
You’ll then be sent a council tax bill in April outlining how much you need to pay.
Residents can choose to make payments over 10 months.
You can also opt to pay instalments over 12 months if you prefer.
What support is available?
Council tax discounts
There are several discounts you could get – but they will vary depending on your circumstances.
Factors such as your household income, whether you have children, and if you receive any benefits, will influence what you get.
To apply for any of the below discounts, go through the government website.
You’ll need your national insurance number, bank statements, a recent payslip or letter from the Jobcentre, and a passport or driving licence when filling out the details.
If you are not sure which local authority you live in, you can check the government’s council locator to find out.
Single people
If you live on your own, you can get 25% off your council tax bill.
This also applies if there is one adult and one student living together in a property, or if there is one adult and one person classed as severely mentally impaired in the home.
If you live with someone who doesn’t have to pay council tax, such as a carer or someone who is severely mentally impaired, you could get a larger reduction too, of up to 50%.
And, if you live in an all-student household, you could get a 100% discount.
A full list of circumstances that exempt you from paying council tax can be found on Citizens Advice.
Retirees
Pensioners may also find themselves eligible for a council tax reduction.
If you receive the Guarantee Credit element of Pension Credit, you could get a 100% discount.
If not, you could still get help if you have a low income and less than £16,000 in savings.
And a pensioner who lives alone will be entitled to a 25% discount too.
Low-income households
If you are on a low income or receiving benefits, you could be eligible for a reduction on your council tax.
Whether you are eligible will vary depending on where you live.
You could also get a deferral if you’re struggling to pay your bill, or you can speak to your council about setting up a payment plan to manage the cost.
But one thing to remember is if you are struggling you should contact your council as early as you can.
You can challenge your council tax band
You might be able to reduce the amount of council tax you pay by challenging your band.
Properties across the UK are put into a band from A to H, and this informs how much council tax you pay.
The bands were created based on property values back in 1991, so many households may find that based on today’s prices, they should be in a different band.
It’s worth checking yours to see if you could get a discount.
First, you need to find out what band you are in.
You can find this out by checking with your local authority or on the postcode checker.
Use the council tax band checker tool to see which band properties along your street are in.
If they are in a lower band than you are, you could successfully make a challenge and get yours lowered.
How do I challenge it?
Contact the Valuation Office Agency (VOA) in England and Wales or the Scottish Assessors Association (SAA) in Scotland to do this.
Gather together evidence showing you’re paying more – this could be having addresses of similar properties to yours in a lower band, for example.
If the VOA agrees that your property is in the wrong band, it will contact you to let you know your band will be changed.
It can take up to two months for the VOA to review your case.
But be warned – challenging your band might not work.
While you could get moved to a lower band and pay less, there’s also the chance the VOA could find you’re not paying enough.
This could mean you’re moved to a higher band – and your neighbours‘ too.
If you disagree with the VOA’s ruling, you can appeal your case – but only if you’ve been told that you can when you get the decision.
You must appeal within three months of your decision – to do this, get in touch with the Valuation Tribunal Service.
If the Valuation Tribunal agrees with you, it will get the VOA to change your band – and your bill will change.
Other council tax bill help
If you’re not eligible for a council tax discount – or you can’t move bands – there are other ways to get help.
Section 13A relief
You can make an application for what is called “discretionary relief” for your council tax bill by filling out a Section 13A application.
This means councils can reduce or completely wipe off a council tax debt you might have.
A previous Sun investigation found that councils have been wiping clean a record level of council tax debt in recent years over the Covid pandemic.
Nearly £2.7million worth of council tax debts was scrapped by local authorities over 2020/21.
Ask your council for the Section 13A form.
Once you’ve sent your Section 13A application over to your local authority, you should be told about a decision within 14 days.
Check if you’ve overpaid
Thousands of homeowners have moved house and are unaware they are still paying council tax bills.
Back in 2022, a whopping £33.7million was sitting in closed or dormant council tax accounts, according to data analysed by The Sun.
The highest amount owed back was £27,150 to one household from St Alban’s Council.
Larger councils are likely to have a higher amount of unclaimed credit because of the higher number of people living in their catchment areas.
Contact your council if you think you’re owed.
Many authorities have different procedures when it comes to dishing out refunds.
While some give them out automatically usually, in some cases you have to apply for a refund.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
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