Council tax warning as millions missing out on £1,000 off bills | Personal Finance | Finance

Households could be eligible for a council tax refund after missing out on a discount scheme thanks to local authority blunders. Anyone who is an unpaid carer and working more than 35 hours a week looking after someone is likely to be eligible. The Live-in Carer Council Tax discount scheme gives people between 25% and 50% off their bill in a year – that’s typically worth between £500 and £1,000. 

However, according to a Money Saving Expert investigation, millions of unpaid carers might be missing out on up to £1,000 off their council tax bills a year. The investigation warned that almost 70 councils have incorrect information on their websites, showing incorrect criteria.

Additionally, almost 80 councils don’t have any easily available information online about how to get the discount. That’s nearly half of all local authorities responsible for taking council tax displaying wrong or incomplete information.

Those eligible could be due money back if they have been overpaying for some time. Living with someone you care for could significantly lower your council tax bill.

While a single occupant typically receives a 25% discount, the same reduction – often worth around £500 – applies to a two-person household where one person is a live-in carer, effectively treating the home as having only one taxable resident.

Furthermore, if the person being cared for is classified as “severely mentally impaired”, the household may qualify for a 50% discount, potentially saving you £1,000 or more annually.

A spokesperson for the Local Government Association said: “Councils provide a range of advice and guidance for local people for help with council tax, housing benefit, and applications for council-delivered welfare support available in their area including the Household Support Fund.

“People should contact their local council welfare and council tax teams to check eligibility if they think they may be entitled to local welfare support and council tax discounts.”

Martin Lewis, founder of Money Saving Expert, said that anyone who thought they were not eligible for a discount should check again via Carers UK, rather than through their council’s website.

It does not matter whether or not you get Carer’s Allowance or Carer Support Payment. You may be eligible regardless of your income or savings.

You must provide more than 35 hours a week of free care a week to someone who is not a spouse, partner or child under 18.

The person being cared for must be receiving one of these benefits, The Sun reported.