The conditions that qualify for council tax discount of up to £2,100 - full list

Thousands of households with disabilities could see their council tax bills slashed, potentially saving them thousands of pounds each year. Eligible individuals suffering from certain conditions and receiving benefits may qualify for a severe mental impairment (SMI) exemption.

With the average Band D council tax bill in England for 2024/25 standing at £2,171, securing a discount could be significantly beneficial. To be eligible for an SMI council tax discount, applicants must meet two key criteria.

Firstly, they must have a medical certification confirming they are "severely mentally impaired". Conditions that might lead to such a classification include dementia, Parkinson's, severe learning difficulties, multiple sclerosis, cerebral palsy, or having suffered a stroke.

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However, the final say on whether someone is classified as SMI rests with a doctor. Residents can typically find a form on their local council's website, which they need to fill out and present to their GP for assessment.

Even if deemed SMI, individuals must also be claiming certain benefits to be eligible for the council tax discount. The full list of qualifying benefits is:

  • Incapacity benefit

  • Attendance allowance

  • Severe disablement allowance

  • Disability living allowance (higher or middle-rate care component)

  • Increase in disablement pension (due to constant attendance being needed)

  • Unemployability supplement or allowance

  • Constant attendance allowance

  • Income support (which includes a disability premium)

  • Personal independence payment (standard or enhanced daily living component)

  • Armed forces independence payment

Scottish individuals may also qualify for help if they claim tax credits, employment and support allowance, or Universal Credit. If you reside in England and Wales, you could also qualify for assistance if you receive disability working allowance or Universal Credit.

Nonetheless, the most straightforward way to determine eligibility is by getting in touch with your local council. Tom Farquhar of Scope, a disability charity, stressed: "It's important that people are aware of the discounts and benefits they are eligible for."

"One example is that individuals in England and Wales with severe mental impairment (SMI) can get a council tax exemption. The easiest way to find out if you are eligible for help with your council tax is to contact your local authority."

The SMI discount available on your council tax bill will hinge on your circumstances. A 100% discount applies if you are SMI and live alone while a 50% reduction is provided if you are SMI and live with an adult carer. Meanwhile, those cohabiting with one adult diagnosed with SMI can obtain a 25% discount.