Final-year university students warned they face surprise £181 council tax bill

Final-year students have been warned they could get surprise bills. Students are exempt during their course but as soon as they finish their final year they are liable to pay council tax - meaning they could owe local authorities for the last few weeks of their rented accommodation.

Megan Lloyd, a debt expert at Citizens Advice, says: “Students become liable for council tax from the day after they formally stop being a student. This could be when their course officially ends, or the day after they abandon it or get dismissed from their studies."

“For example, if a student’s final term ends on 10 June, they will become liable for council tax from 11 June,” she says. She adds: “This only applies to final-year students; students don’t have to pay council tax during the summer holidays between years of study.”

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A spokesperson for Council Tax Advisors said: “It’s advisable for students to check with their local council for precise details, as there can be variations in how councils handle the end of term exemptions and the start of council tax liability.”

According to Gov.uk, from 2024 to 2025, the average bill for a band D property will be £2,171 a year. This is about £181 a month. A Maintenance Loan can help pay for things such as rent, food, books, travel, and other expenses. Any loan you borrow needs to be paid back, but not until you’ve finished or left your course, and your income is over the repayment threshold.

UCAS explains: "Depending on your circumstances, you may be able to apply for a Maintenance Loan. We’ll ask for information based on your household income if you apply for the maximum amount of Maintenance Loan. Students who receive State Benefits, and are entitled to get the means-tested element of funding, may be eligible for an increased amount of Maintenance Loan. If eligible, their Maintenance Loan will be made up of the Maintenance element and the Special Support element."