Council tax is a significant expense for households across the UK, and with rates rising in many areas, it’s important to know how to manage these costs effectively. Here are practical steps you can take to deal with increasing council tax costs without overstretching your budget.
1. Check if You’re in the Right Tax Band
One of the first things to do if you think your council tax is too high is to check whether you’re in the correct council tax band.
Thousands of households across the UK are in the wrong tax band, leading to higher payments than necessary. You can check your band on the government’s council tax valuation list.
If you believe you’ve been overcharged, you can appeal your council tax band. It’s worth noting that there’s a chance your band could go up, so consider this before making an appeal.
2. Apply for Council Tax Reduction or Exemptions
If you’re struggling to pay your council tax, you may be eligible for a Council Tax Reduction (formerly known as Council Tax Benefit).
This applies if you’re on a low income, receiving benefits, or live alone. Some groups, such as students or people with severe mental impairments, may also be exempt from paying council tax altogether.
Check with your local council for specific exemptions and reductions, as rules vary depending on the area.
3. Spread the Cost Over 12 Months
Most councils allow you to pay your council tax over 10 months, with two months off. However, spreading payments over 12 months can reduce your monthly bill, making it easier to manage. Contact your council to request this option if it’s not already in place.
While your total bill won’t decrease, spreading payments can provide financial breathing room during tighter months.
4. Set Up a Direct Debit
Many councils offer a small discount or incentive for households that set up a direct debit for council tax payments.
This ensures you don’t miss a payment and helps with budgeting, as the cost is automatically deducted each month.
5. Consider Downsizing
If council tax is becoming unmanageable and you’re living in a large property, you might consider downsizing.
Moving to a smaller home could reduce your council tax band and overall household expenses, such as utility bills and maintenance costs.
6. Explore Other Financial Help
If you’re experiencing financial hardship, local councils often have discretionary funds to help those struggling with council tax payments. Additionally, charities and advice services such as Citizens Advice can offer guidance and support in managing council tax debt.
By checking your tax band, applying for reductions, and exploring payment options, you can better manage the financial burden of rising council tax costs.
