As council tax bills loom larger on the horizon, renowned Money Saving Expert Martin Lewis has shed light on a little-known discount that could potentially save households thousands of pounds each year. The Severe Mental Impairment (SMI) council tax discount, often overlooked, offers a significant reduction of 25% on council tax bills for eligible individuals.
Mr. Lewis, known for his financial advice, emphasized the obscurity of this discount, noting that even some council offices are unaware of its existence. With an estimated 100,000 eligible individuals currently missing out on this benefit, raising awareness about the discount has become imperative.
Explaining the eligibility criteria, Mr. Lewis outlined a scenario where one member of a household has SMI, rendering them exempt from council tax payments. In such cases, the remaining adult in the household qualifies for the single person’s discount of 25%. This discount can even be backdated, potentially resulting in substantial refunds for eligible individuals.
The process to claim the discount varies depending on the region. In England and Scotland, individuals must obtain a claim form from their local council, along with a doctor’s diagnosis and supporting evidence. Meanwhile, in Wales, applicants can print the form from the Welsh Government website, followed by obtaining a doctor’s diagnosis and submitting the form to the local council tax office.
Once approved, the discount is applied automatically each year, eliminating the need for annual reapplication.
Aside from the SMI discount, certain categories of individuals are exempt from paying council tax altogether. These include individuals under 18, those on specific apprentice schemes, full-time students, student nurses, live-in carers, diplomats, and more. Additionally, individuals living alone or with individuals who are disregarded for council tax purposes are entitled to a 25% discount.
As households brace themselves for impending council tax increases, Lewis’s advocacy for the SMI discount serves as a beacon of financial relief for those grappling with rising living expenses. By raising awareness about this underutilized benefit, Lewis aims to ensure that eligible individuals receive the support they deserve, potentially easing the burden of council tax payments for thousands across the country.
