The latest data from StepChange highlights the ongoing pressure that keeping up to date with Council Tax payments is having on people as average arrears per household in Scotland have risen by 11 per cent year on year. The average Council Tax arrears amount for those seeking help from the charity is an average of £2,075 – up from £1,871 over the same period last year.
The figures also show an increasing number of people on benefits looking for help with debt problems. Two in five (40%) Scottish clients are in receipt of Universal Credit, which is up by six percentage points compared to April to July of 2023 (34%).
StepChange Scotland is concerned that arrears across household bills are still rising, despite inflation falling in recent months and is urging people to make sure they are not missing out on extra benefits or Council Tax discounts or reductions.
The charity said lower income households continue to feel cost of living pressures more acutely, as higher bills take up a larger proportion of their income, and make it more difficult to repay debt.
StepChange would like to see the Scottish Government and the new Labour Government commit to building up financial resilience among those on lower incomes and making essential bills more affordable.
They say it’s vital that households aren’t pushed into debt through covering essential living costs. The charity has long been calling on the Scottish Government to implement effective reforms to Council Tax collection, which would lessen the hardship that this bill can cause especially to the most financially vulnerable.
Sharon Bell, Head of StepChange Scotland, said: “We know that Council Tax in particular is a bill that our clients have struggled with for a number of years, and Council Tax collection practices are a particular issue – often plunging people into more hardship, rather than helping them to repay.
“Reforming Council Tax collection needs a joined-up approach from the Scottish Government, sheriff officers and advice agencies. A Council Tax charter should be developed to codify fair collection practices, signposting people struggling for advice and support, while minimising harm to those who have fallen into financial difficulty.”
Free, confidential debt advice is available 24/7 using StepChange’s online debt advice service at www.stepchange.org.
Check if you could be exempt from paying Council Tax
You will not pay Council Tax if:
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You are a full-time student
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You are in the Armed Forces in Forces accommodation
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You live in a care home or hospital
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Your home is unoccupied and empty (up to six months) – for example, if you’ve gone into hospital
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You have a severe mental impairment (e.g. dementia) – if you only live with someone who has dementia, then you’ll be treated as a sole occupant as they will be disregarded, but you won’t both be exempt
Contact your local authority about your eligibility and how you can apply for an exemption – a link to all 32 local authorities in Scotland is at the bottom of this page.
Could you be eligible for a discount on your Council Tax bill?
There are some circumstances where you may get a reduction on your Council Tax and the amount of discount varies depending on your circumstances.
If you live alone
The full Council Tax is calculated assuming there are two or more people living in each home – if you live alone, you should apply to your local council for a discount – you could get a 25 per cent reduction, regardless of your financial circumstances.
If you live with someone under 18 or a student
Council Tax is not calculated for anyone aged under 18, full-time students, student nurses and some apprentices or trainees.
If you are a carer
Carers who look after someone in the household for at least 35 hours per week and who meet additional criteria may be disregarded for Council Tax purposes, contact your local authority for their eligibility criteria.
Just be aware, this doesn’t apply if the person receiving care is the partner of the carer, or is the carer’s child aged under 18.
If there are major changes to the value of your home
You may be able to get your home moved to a lower band if it has decreased in value. For example, if you have made home adaptations for a disabled person, or if a motorway has been built nearby.
You may also get the band lowered if a room in the house is dedicated to equipment used by a disabled person on a daily basis.
If you change the way you pay
Although the total year’s amount will stay the same, you can request your bill be split over 12 months instead of 10, so you can spread the cost and reduce your monthly outgoings.
Alternatively, if you can afford to pay the whole bill in one lump sum, check with your local council if you can get a discount.
Apply for Council Tax Reduction
You may be eligible to claim a Council Tax Reduction if you’re on a low income or claiming certain benefits.
You can also claim Council Tax support regardless of whether you own your own home or rent, or whether you’re working or unemployed.
Each local council is responsible for operating their own Council Tax support scheme, so the amount of support given across the country may vary.
The amount you will get depends on many factors, including:
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Which benefits you receive
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Your age
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Your income
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Your savings
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Who you live with
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How much council tax you pay
You may get more Council Tax support if you receive a disability or carers benefit.
If you receive the Guarantee Credit Part of Pension Credit you may even get your Council Tax paid in full. If you don’t have it, but are on a low income and have less than £16,000 in savings, you may still get some help.
Local councils
Contact your local council from the list below to apply for a Council Tax Reduction or discount.
- Inverclyde
- Renfrewshire
- West Dunbartonshire
- East Dunbartonshire
- Glasgow
- East Renfrewshire
- North Lanarkshire
- Falkirk
- West Lothian
- Edinburgh
- Midlothian
- East Lothian
- Clackmannanshire
- Fife
- Dundee
- Angus
- Aberdeenshire
- Aberdeen
- Moray
- Highland
- Na h-Eileanan Siar
- Argyll and Bute
- Perth and Kinross
- Stirling
- North Ayrshire
- East Ayrshire
- South Ayrshire
- Dumfries and Galloway
- South Lanarkshire
- Scottish Borders
- Orkney
- Shetland