Households claiming DWP benefits could save up to £2,000 on their council tax bills as millions face rises of up to 25 per cent.
The Government has confirmed that eligible residents could receive discounts of up to 100 per cent on their annual council tax payments.
With average households paying around £2,000 yearly in council tax, the scheme offers significant relief for struggling families.
The support is available to homeowners and renters alike, with eligibility extending to both unemployed and working individuals on low incomes.
The Government outlines several key factors that determine eligibility for Council Tax Reduction (CTR).
Qualifying criteria include being on a low income or claiming benefits, with the exact reduction depending on individual circumstances.
Some groups automatically receive discounts, including pensioners, single households and students.
Some groups automatically receive discounts, including pensioners, single households and students
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Others must apply directly to their local council for an assessment of their circumstances. Citizens Advice recommends applying as soon as possible to avoid delays in receiving support.
The amount of reduction available varies by council, with decisions based on factors including income level and benefit status.
Martin Lewis has highlighted crucial council tax discounts for those with serious health conditions. People with conditions including dementia, severe Parkinson's, strokes, or brain injuries may also qualify for a full exemption.
The discount applies to those with a "severe mental impairment" that affects intelligence and social functioning permanently.
He said: "It is common with severe dementia, strokes, severe Parkinson's, brain injuries or other conditions. Those are the type of condition that will get an SMI."
The scheme could lead to significant savings, with some households eligible for a complete waiver of council tax.
To claim the health-related discount, applicants must have their condition medically certified by a doctor. The person must also be receiving a qualifying benefit, such as Attendance Allowance, Disability Living Allowance, or Personal Independence Payments (PIP). Universal Credit and Severe Disablement Allowance may also qualify in some cases.
For households where someone with SMI lives with a partner, a 25 per cent reduction typically applies. Those eligible are advised to contact their local council, providing both medical certification and evidence of their qualifying benefits.
The Money Saving Expert website offers a comprehensive guide on claiming the 'severely mentally impaired' discount.
Eight councils are proposing dramatic rises ranging from 9.99 to 25 per cent, far exceeding the standard 4.99 per cent maximum allowed under Government rules.
These extraordinary increases are possible through councils threatening to issue Section 114 notices - effectively declaring bankruptcy.
This loophole allows councils to bypass normal restrictions with ministerial approval, avoiding the usual requirement for a local referendum on increases above 4.99 per cent.
Council tax bills are expected to go up this year GETTY The Royal Borough of Windsor and Maidenhead is planning England's steepest rate hike at 25 per cent, which would add £451 to average household bills.
Applications can be submitted up to eight weeks before becoming responsible for council tax payments.
The organisation advises checking eligibility for both Council Tax Reduction and Second Adult Rebate before applying. Early applications are recommended to minimise waiting times once eligibility begins.
Those interested should contact their local council directly to start the application process.
The scheme remains available throughout the year, but prompt applications ensure support is received as soon as possible.
