Government May Remove Single Occupancy Council Tax Discount in Upcoming Budget
It has been rumored that the government is considering removing the single occupancy council tax discount in the upcoming budget on 30th October. This could have a significant impact on those living with dementia or other forms of severe mental impairment.
Currently, under the law, approximately 250,000 individuals living at home with dementia or other forms of severe mental impairment are eligible for a 25% council tax discount. However, if the proposed changes go into effect, these individuals may lose this discount. Additionally, those living alone with dementia may have their full council tax reinstated.
The law states that individuals with severe mental impairment may be “disregarded” for the purpose of assessing council tax. This means that households with two people, one of whom has dementia, can claim that the person with severe mental impairment is disregarded and therefore become a single occupancy household. If the proposed changes are implemented, these households will lose the 25% discount. Individuals with severe mental impairment living alone are currently exempt from paying council tax.
It is important to note that over 90% of people living with dementia are over the pensionable age. This, combined with the recent removal of the winter fuel allowance, will significantly impact pensioners.
Derek Brown, a resident of Northallerton, North Yorkshire, has been actively campaigning for changes to the council tax SMI disregards. His wife, Margaret, was diagnosed with Alzheimer’s disease in early 2018 and is now confined to a wheelchair and receiving care at home.
Brown has been pushing for the council tax SMI disregards to be backdated to the date of GP certification. In December 2020, he took his local council to the High Court on this issue. In preparation for the case, he conducted a Freedom of Information request and repeated it in January 2023.
According to the Freedom of Information request, as of 1 January 2023, there were a total of 201,601 people with SMI receiving discounts and exemptions in England, 12,641 in Wales, 36,101 in Scotland, and 191 in Northern Ireland. This brings the total to 250,534 individuals affected by the proposed changes.
The Local Government Finance Act 1992, Schedule 1, Section 2(1) states that individuals with severe mental impairment may be disregarded for the purpose of assessing council tax. More information about council tax discounts for disabled individuals can be found on the GOV.UK website.
According to the Alzheimer’s Society, 7.8% of people with dementia are under 65, meaning that 92% are over the age of 65.
For more information on this issue, please contact Derek Brown at 42 Mowbray Road, Northallerton, North Yorkshire, DL6 1QU or by phone at 01609780358.
References:
– Local Government Finance Act 1992, Schedule 1, Section 2(1): https://www.legislation.gov.uk/ukpga/1992/14/schedule/1
– GOV.UK, How Council Tax Works, Discounts for Severely Mentally Impaired People: https://www.gov.uk/council-tax/discounts-for-disabled-people
– Alzheimer’s Society, Types of Dementia: Young-Onset Dementia: https://www.alzheimers.org.uk/about-dementia/types-dementia/young-onset-dementia
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