Latest news with #CouncilTaxReductionScheme
Daily Record
4 days ago
- Business
- Daily Record
Martin Lewis Council Tax checks could cut monthly bill and bring huge refunds
There are four crucial checks people need to do which could result in payouts worth thousands of pounds. Martin Lewis is urging everyone paying Council Tax to check if they are forking out too much money by not claiming a discount or being in the wrong band. In the latest issue of the MoneySavingExpert ( newsletter, the consumer champion breaks down the simple checks which could lead to refunds worth thousands of pounds. Council Tax bills increased around the UK in April, putting pressure on households to factor in higher outgoings to their monthly finances, but the financial guru warns hundreds of thousands of people may be overpaying. Martin wrote: 'There's a lot wrong with Council Tax - unsurprisingly, as in England and Scotland, we still rely on a supposedly stopgap valuation done 34 years ago, to dictate what band a home's in... even though much of the country is now unrecognisable compared to then.' Martin's four 'crucial reductions to explore': Check if you're in the right Council Tax band Check for a Council Tax discount if you are single, a student, or have physical or mental health disabilities Check for Council Tax Support if you're on a low income Check if you are owed Council Tax Credit The financial guru shared a step-by-step guide on how to 'check and challenge' your Council Tax band if you think you're in the wrong one. He also highlighted how an estimated 2.25 million people on benefits are missing out on Council Tax savings of up to £1,500 each year. Martin also reminded people living on their own that they are entitled to a 25 per cent discount on their annual bill. It's important to be aware that in Scotland, people on a low income may be eligible for the Council Tax Reduction Scheme, which can provide annual savings of up to £850 and is only available north of the border. Full details on here. Martin urged up to 2.25m people on benefits including Universal Credit and Pension Credit, to check if they are eligible for a 100 or 50 per cent discount on their Council Tax bill - worth up to £1,500 this year. This is provided by local authorities and needs to be claimed directly from them - it is not applied automatically - even if you're on benefits. Martin's biggest check is on your Council Tax band, which an estimated 400,000 households north and south of the border are in the wrong one and could be due refunds worth thousands of pounds. He explained how much Council Tax you pay depends on your local authority, which sets an overall amount each year and assigns a 'band' to your home, based on its value. It isn't banded by its current market value, but what it was worth on April 1, 1991 - the date Council Tax was introduced. He added that the band valuation has not been done in Scotland and England since that date which is why many people may be in the wrong band. Martin then explained two checks which may indicate that someone is in the wrong band - the neighbours check and the valuation check. The neighbours check This is where you have to compare your house to neighbours, in similar, or preferably identical properties, to see if you're in a higher band. You don't have to ask your neighbours which Council tax band they're on, just go to the Scottish Assessors Authority (SAA) website here, where you can see yours and your neighbours' addresses. If that check shows you're in too high a band, move to the next step, the 'valuation check'. The valuation check This is where you have to work out what your house was worth in 1991 because that's what decides the bands. To do it, you've got to take a valuation of your house, or a similar house and then convert it back through a house calculator - there are free tools online that will do this for you. There are eight Council Tax valuation bands in Scotland, from A to H. Band A is the lowest, while band H is the most expensive. The valuation Council Tax band ranges can be found on the SAA website here. Band A - Up to £27,000 Band B - Over £27,000 and up to £35,000 Band C - Over £35,000 and up to £45,000 Band D - Over £45,000 and up to £58,000 Band E - Over £58,000 and up to £80,000 Band F - Over £80,000 and up to £106,000 Band G - Over £106,000 and up to £212,000 Band H - Over £212,000 Martin stressed how the checking process before going ahead and challenging your local council is the most important bit. he also warned people not to begin the challenge process unless you pass both of these checks. The full step-by-step guide on challenging your Council Tax band and more information on discounts and reductions available can be found on here. Check if you could be exempt from paying Council Tax You will not pay Council Tax if: You are a full-time student You are in the Armed Forces in Forces accommodation You live in a care home or hospital Your home is unoccupied and empty (up to six months) - for example, if you've gone into hospital You have a severe mental impairment (e.g. dementia) - if you only live with someone who has dementia, then you'll be treated as a sole occupant as they will be disregarded, but you won't both be exempt Contact your local authority about your eligibility and how you can apply for an exemption - a link to all 32 local authorities in Scotland is at the bottom of this page. Could you be eligible for a discount on your Council Tax bill? There are some circumstances where you may get a reduction on your Council Tax and the amount of discount varies depending on your circumstances. If you live alone The full Council Tax is calculated assuming there are two or more people living in each home – if you live alone, you should apply to your local council for a discount - you could get a 25 per cent reduction, regardless of your financial circumstances. If you live with someone under 18 or a student Council Tax is not calculated for anyone aged under 18, full-time students, student nurses and some apprentices or trainees. If you are a carer Carers who look after someone in the household for at least 35 hours per week and who meet additional criteria may be disregarded for Council Tax purposes, contact your local authority for their eligibility criteria. Just be aware, this doesn't apply if the person receiving care is the partner of the carer, or is the carer's child aged under 18. Apply for Council Tax Reduction You may be eligible to claim a Council Tax Reduction if you're on a low income or claiming certain benefits. You can also claim Council Tax support regardless of whether you own your own home or rent, or whether you're working or unemployed. Each local council is responsible for operating their own Council Tax support scheme, so the amount of support given across the country may vary. The amount you will get depends on many factors, including: Which benefits you receive Your age Your income Your savings Who you live with How much council tax you pay You may get more Council Tax support if you receive a disability or carers benefit. If you receive the Guarantee Credit Part of Pension Credit you may even get your Council Tax paid in full. If you don't have it, but are on a low income and have less than £16,000 in savings, you may still get some help. Local councils Contact your local council from the list below to apply for a Council Tax Reduction or discount. Inverclyde Renfrewshire West Dunbartonshire East Dunbartonshire Glasgow East Renfrewshire North Lanarkshire Falkirk West Lothian Edinburgh Midlothian East Lothian Clackmannanshire Fife Dundee Angus Aberdeenshire Aberdeen Moray Highland Na h-Eileanan Siar Argyll and Bute Perth and Kinross Stirling North Ayrshire East Ayrshire South Ayrshire Dumfries and Galloway South Lanarkshire Scottish Borders Orkney Shetland
Glasgow Times
22-05-2025
- Business
- Glasgow Times
Warning as Glasgow faces biggest spending gap in Scotland
The city has a spending gap of £116million for the next two years from April 2026. The details are included in an Accounts Commission report into the finances of Scotland's local authorities. READ NEXT:Keir Starmer signals change to allow more pensioners to get winter fuel payment The finance watchdog has said that councils are facing greater spending pressures and resources from the Scottish Government are not matching the growing demand and pressures from inflation and rising staff costs. It said mounting pressures from inflation, increasing costs, and demand are exceeding the Scottish Government's additional investment in Scotland's councils. The organisation said longer-term change in the way services are delivered is happening but must accelerate and action is also needed to better understand the impacts on the most vulnerable communities. To meet the gap, councils are raising council tax, increasing fees and charges and making cuts. Glasgow City Council expects to raise the most from fees and charges in 2025/26, with around £210.6m projected to be raised, around 10% of its approved 2025/26 revenue budget. READ NEXT:Huge £500m masterplan for housing and jobs revealed for Shawfield Income from Glasgow City Council's Neighbourhood, Regeneration and Sustainability services is projected to increase by three per cent to £111 million, driven by the fees and charges in place for 2025/26. One of the ways the council is raising cash is through increasing council tax by 7.5% but it only raises £20.2m. The Accounts Commission said: 'Council tax only represents a small proportion of a council's overall revenue budget, making up around 19% of total council income across Scotland, with the exact proportion varying across council areas. 'On this basis, for example, a 10% increase in council tax rates will not represent an overall 10% increase in council budgets, but only increase available funding by 1.9%. 'Council tax increases can also disproportionately impact lower-income households, although the Council Tax Reduction Scheme is in place to support a range of claimants.' The Accounts Commission said councils need to have conversations with citizens about how services will be delivered and they cannot rely on government funding to match rising costs. READ NEXT:We've been 'strung along': Anger at Ruchill Community Centre decision Derek Yule, Member of the Accounts Commission, said: 'There's a growing expectation gap. Councils don't have enough money to meet current demand, at a time when local communities are being asked to contribute more through increases in council tax and charges for some services. 'Councils need to provide clearer budget information and work with communities to determine how services will be delivered in the future. These conversations won't be easy. 'With public finances tightening, however, not all cost increases faced by councils can be met by government funding. 'Local action is needed now to find solutions to immediate and future financial challenges. This means difficult decisions on what services can be delivered and making major changes in how they are delivered.'
