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Do people with dementia pay less Council Tax?

Four ways you might be able to save on your Council Tax bill if you have dementia

People with dementia may be eligible for a reduction in their Council Tax bill. Here we explain four key types of support available, how much you could save and how to apply for them in England and Wales.

It is possible to claim more than one type of support at the same time.

1. Reduction due to having a ‘severe mental impairment’ (SMI)

If you have a diagnosis of dementia and your medical practitioner agrees you have a ‘severe impairment of intelligence and functioning (however caused) which appears to be permanent’ you can be disregarded for Council Tax purposes. This means you won’t be counted when working out what is due at your property.

You must be in receipt of a qualifying benefit, such as Attendance Allowance or Personal Independence Payment, so you may need to apply for these first.

How much will I save?

How much you will save depends on who else you live with and their situation. If you claim the SMI discount and live alone, you will be disregarded and your property will become exempt. No further Council Tax will be due on the property. This is known as a class U exemption.

If you are disregarded and live with a partner, they will assessed as living in the property alone which attracts a 25% discount.

If you live with two other adults who both count for Council Tax purposes, claiming SMI won’t usually make any difference to your bill.

How do I apply?

You will need to contact your local council to apply and ask for the correct form. Some councils have an online process on their website - find your local council.
In Wales, the same form is used everywhere and can be found here - Council Tax exemption or reduction for severe mental impairment form

Ask your council to backdate the claim as far as their policy will allow – this varies depending on the council.

2. Carer’s disregard

If you care for someone with dementia for more than 35 hours per week, you may be eligible for a carer’s disregard. You don’t have to be receiving carer’s allowance, but you must live together. 

Unfortunately, you cannot claim a carer’s disregard for caring for a partner. It is open for friends or adult relatives of people with dementia who live with them and provide care for them. More than one person can be classed as a carer for Council Tax purposes.

How much will I save?

If the person you care for receives the SMI discount (mentioned above) and you receive the carer’s disregard, your bill will usually reduce to 50%, if it’s just you two living there.

How do I apply?

Ask your council for an application form or check their website. You may need evidence that the person you care for is in receipt of a qualifying disability benefit, such as a letter from the Department for Work and Pensions (DWP).

3. Reduction for disabilities

This reduction is for those who have to live in a larger property due to their disability. This won’t always apply to people with dementia or their carers, but it may, depending on their overall health and mobility.

To be eligible, you must show that you have either:

• an extra bathroom, kitchen or other room that a disabled person living there needs
• extra space inside the property for using a wheelchair

How much will I save?

Your bill will be reduced to the next lowest Council Tax band. For example, if your property is in Band D, you’ll pay the lower Band C rate. If your home is in Band A, you’ll get a 17% discount on your bill instead.

How do I apply?

Ask your council for an application form or check their website.

4. Council Tax reduction scheme (Council Tax support)

This is a means tested Council Tax reduction that can be claimed by anyone of any age, whether they are in or out of work, disabled or a carer.

As it’s ‘means tested’, eligibility is dependent on how much capital you have (excluding the value of your home) and what income you have coming in.

For those of working age, the rules can vary between councils. Ask for a copy of their policy.

For those over state pension age, you must have less than £16,000. If you have more than this, you can’t usually claim, even if your income is low.

How much will I save?

How much you will save depends on local policy as well as your financial situation. Working age schemes can be less generous.

For those over state pension age, if you have savings of less than £6,000, you will be assessed on income alone. If you have above £6,000, it can reduce the support you will get.

Those who claim Pension Credit (guarantee credit) can get a 100% reduction in their bill, even if they have above the usual £16,000 cut off.

A final note on Council Tax reductions

Our Council Tax factsheet covers exemptions, disregards and discounts in more detail.

If you have claimed everything that you are entitled to and are still struggling to pay bills, speak to the council about discretionary Council Tax help. You may also find help though a welfare assistance scheme, such as a Local Welfare Assistance Finder 

Council Tax is complicated. You could also find support from a local guide, such as Advicelocal.