Ahead of council tax hikes, could you be among 2m eligible for rebates?

First Published by : The Telegraph

Four in 10 households will see their Council Tax bills rise this year, the Chartered Institute of Public Finance and Accountancy (Cipfa) calculates, but more than 2m households are entitled to rebates. Could you be one of them?

The average bill compromises the demand from a local authority, as well as separate charges levied by police and fire authorities, and parish and community councils. Cipfa found that across England, the council tax bill for the average band D home is increasing by 0.3 per cent or £4.46 to £1,443.79 from next month but some will rise by more.

The Government has pledged £1billion to help English town halls freeze the levy, but a minority of councils claim they would still face a shortfall. They can reject the Government's offer but must hold a referendum if they want to raise council tax by more than 3.5 per cent.

Some councils may be falling back into bad habits of overspending other people’s money, Labour increased this tax by 63pc more than the rate of inflation during its 13 years in power. Accountants Smith & Williamsonsay that was a bigger percentage increase than any other direct or indirect personal tax and duty changes, with the exception of stamp duty on house purchase.

Taking a typical ‘band D’ house in Guildford and using Surrey County Council statistics, Smith & Williamson found the tax bill the last time the Conservatives were in government was the equivalent of about £895 now. But the typical council tax bill increased to £1,459 a year under Labour.

Richard Mannion, a partner at Smith & Williamson, described council tax and stamp duty as “stealth taxes” and pointed out that the latter bill on purchase of this ‘band D’ property nearly doubled since 1997; rising by 92pc.

Publicity about the tax may cause more people to question whether their property is in the right band and whether reassessment might cut their bills.

You can confirm that your property’s is in the right banding by contacting Rebates UK Claims and Services Limited via their website: www.rebatesuk.co.uk or www.ctrebates.co.uk  

Older people with savings of less than £16,000 are the biggest group entitled to rebates. Here and now, more than 2m pensioners could help themselves to a Council Tax cut, according to the charity Age UK. 

Failure to claim Council Tax Benefit to which they are entitled means they pay £690 more a year for this tax than necessary. If you know someone who is eligible to claim help with Council Tax or other benefits, you can find more information here.

Are youpaying too much Council Tax?