Considering you have to pay for everything by yourself, living alone can be expensive. From rent or mortgage payments, utility bills and Council Tax to TV and broadband and home insurance, your monthly costs really do start to mount up.
There are some ways you may be able to save money, though. As well as making money by selling your unwanted possessions or starting a side hustle, you can save a fair amount by making sure you’re not paying more than you should.
Some of the most common money-saving tips include cancelling unused gym memberships and unwanted subscriptions and finding ways to reduce your utility bills. Utility bills contribute to a considerable chunk of your monthly household outgoings, so it makes sense to start there. Some of the things you can do include switching providers, swapping to energy-efficient lightbulbs, investing in a thermostat and sealing air leaks around doors and windows.
You may even be able to reduce your Council Tax bill. One of the ways you can do this is with the Single Person Council Tax Discount. In this article, we’ll be focussing on this, but we’ll also take you through some of the other Council Tax discounts you might be entitled to.
If you are eligible for the Single Person Council Tax Discount, you will get 25 per cent off your Council Tax Bill.
For example, if the total Council Tax bill for your property is £1,966 per year, you will get a 25 per cent discount, meaning you only have to pay £1474.50.
Continue reading to find out if you could be eligible for this discount.
Most UK households will have to pay Council Tax to their local council to pay for local services like:
- Administration and record-keeping (such as births, deaths and marriages and local elections
- Environmental health and trading standards
- Leisure and recreation projects (maintaining parks and sports centres, for example)
- Libraries and education services
- Police and fire services
- Rubbish collection and disposal
- Transport and highway services (including street cleaning, street lighting and road maintenance)
The cost of Council Tax is set by local councils and depends on the following:
- Which valuation band your property is in
- How much the council needs to fund its services
- What your personal circumstances are
While Council Tax is an annual fee, it is usually paid in ten monthly instalments.
Who has to pay Council Tax?
A full Council Tax bill will be based on two or more people over the age of 18 living together in a property that’s their main home. Some people will be ‘disregarded’, though, which means the Council Tax bill may be reduced, or the household will be exempt from paying altogether.
People who are disregarded are those who are:
- Under 18 years old
- Aged 18 or 19 with a parent or carer who receives Child Benefit for them
- Aged 18 or 19 and were still in education on 30th April (if they left education after this date, they would be disregarded until 1st November)
- A full-time student at college or university
- Student nurses
- A young person on a government training scheme
- On certain apprentice schemes
- Foreign language assistants registered with the British Council
- Under 25 and getting funding from the Education and Skills Funding Agency
- Are not British citizens but are the husbands, wives, civil partners or dependents of a student and can’t work or claim benefits in the UK
- Long-term hospital patients or care home residents
- Living in a hostel that provides them with care or treatment
- Staying in a hostel or night shelter
- In prison or in detention
- Awaiting deportation under mental health legislation
- Living in a bail or probation hostel
- Diplomats
- Living with learning disabilities or severe mental impairment and claiming benefits
- Live-in carers who care for someone who isn’t their partner, spouse or child under 18.
- Ukrainian citizens being hosted under the ‘Homes for Ukraine’ scheme
If you are the only adult in your household, you can get a 25 per cent discount on your Council Tax. This is known as the Single Person Council Tax Discount. If you see code ‘01’ on your Council Tax bill, you are getting the Single Person Council Tax Discount.
You will be classed as a single person for Council Tax purposes if you live alone or you live with anyone who is disregarded (see above).
The Single Person Council Tax Discount will continue for as long as you occupy the property as a single adult. You must let your local authority know if a child who lives with you turns 18, another adult comes to live with you in the property as their main home or you leave the property on a permanent basis. A change in circumstances could affect your entitlement to Single Person Council Tax Discount, but you may be eligible for an alternative reduction. We’ve listed some of these in the section below.
Examples of who is eligible for the Single Person Council Tax Discount
- If a friend comes to stay with you for a month, you will still be eligible as they will not be considered as having changed their main residence.
- If your partner works away and only comes home occasionally, you will not be eligible. This is because there is an intention to return to the property, which means it is still deemed as their main residence.
If you don’t qualify for Single Person Council Tax Discount, you may be exempt or entitled to a reduction in the following circumstances:
Everyone who lives at the property is disregarded
In this case, the Council Tax bill will be reduced by 50 per cent.
Everyone who lives at the property is a student
If the property is occupied by only students, there will be no Council Tax to pay.
Everyone who lives at the property is severely mentally impaired
If the property is occupied by only people who are severely mentally impaired, there will be no Council Tax to pay.
You or someone you live with is disabled
If you or someone you live with is disabled, your Council Tax bill may be reduced to the next lowest Council Tax band (if your property is in band A, it will be reduced to 17 per cent). To qualify for this reduction, you must be able to show that a disabled person lives at the property and the property must have one of the following:
- An extra bathroom or kitchen to meet a disabled person’s needs
- Any other room that’s mainly used by a disabled person to meet their needs (not including a toilet)
- Enough space for a disabled person to use a wheelchair
The property is empty
If no one lives at the property — because it is unsafe to live in, for example — you may be entitled to a reduction. How much it is reduced by and how long it is reduced for will depend on the local council.
The property is a second or holiday home
Some councils will offer a ‘second home discount’ on properties that aren’t lived in on a permanent basis. While this discount may only be applied for a limited time, it could save you up to 50 per cent on your Council Tax bill.
The local council must give you a 50 per cent discount if your second home is either owned by someone who can’t live there because of their job or their partner’s job or it is a mooring occupied by a boat or a pitch with a caravan on it.
You have a low income
If you are on a low income, you may be entitled to a reduction. How much of a reduction you get could be affected by any benefits you claim or other people living with you.
You live with someone who is on a low income
You may be entitled to a ‘second adult rebate’ if you live with someone who is on a low income or claiming certain benefits.
Your property has an annexe
If your property has an annexe that is used by people who live in the main property or their immediate family members, your local council may give you a 50 per cent discount.
You won’t pay Council Tax on the annexe if it is empty or a dependent family member (for example, someone aged over 65 or someone with a physical or mental disability) lives there.
You’re struggling to pay for essentials
If you are suffering severe hardship and can’t afford to pay your Council Tax bill, your local council may reduce it or cancel it altogether. This is called ‘discretionary reduction’.
If your council doesn’t give you a discretionary reduction, you can appeal to a valuation tribunal.
You may be getting a Council Tax discount automatically. If not, you should contact your local council to apply for a discount or an exemption.
They will ask you about your circumstances and your income, and some councils will ask you to provide proof of your situation, for example, a letter from your doctor or your employer.
If you are entitled to a reduction, they will work out your new bill and let you know how much Council Tax you owe. You won’t usually get an actual payment.
If you are entitled to a reduction because someone has moved out of your property, you will get the reduction from when they moved out — even if you tell the council later.
Most UK households will have to pay Council Tax to their local council to pay for local services like environmental health and trading standards, leisure and recreation projects and rubbish collection.
If you are the only adult in your household, you can get a 25 per cent discount on your Council Tax. This is known as the Single Person Council Tax Discount. For example, if the total Council Tax bill for your property is £1,966 per year, you will only have to pay £1474.50 with the 25 per cent discount.
You may be getting a Council Tax discount automatically. If not, you should contact your local council to apply for a discount or an exemption.