Council Tax bills across Scotland could see a sharp rise of up to 10 percent in April as local authorities grapple with mounting debts.
On top of that, Scottish Water announced this week that water bills are set to climb by 9.9 percent, adding an extra £3.68 per month to household expenses for water and wastewater services from April 1. In Scotland, the cost of water is included in council tax costs, meaning this bill will likely rise.
Despite these increases, many eligible residents may be unaware of the Council Tax Reduction scheme, a financial relief program available exclusively in Scotland. The scheme offers support to low-income households, students, and individuals with disabilities or caring responsibilities, potentially easing the financial burden for those who qualify.
What is council tax?
Council tax is a local tax on domestic properties that helps fund essential services such as rubbish collection, road maintenance, and street lighting.
Every household is required to pay council tax, unless they are exempt.
Each individual council holds responsibility for:
- Setting council tax rates within their area
- Collecting council tax payments
- Applying any applicable discounts
- Deciding how to allocate the funds raised within their jurisdiction
How often do you pay council tax?
In England, council tax is typically paid in 10 monthly instalments, running from April to January. However, Scotland follows a different approach, with no automatic “free months” like the 10-month payment system common in England and Wales.
Instead, Scottish councils generally distribute council tax payments evenly across 12 months, meaning there are no months without payments. That said, some councils do offer the option of a 10-month plan, allowing February and March to be payment-free months.
Payment schedules for council tax can vary across Scotland, with many local authorities offering both 10-month and 12-month plans. Here’s a quick look at what different councils offer:
- The Highland Council – Offers a 10-month plan with payment breaks in either July and August, December and January, or February and March. Alternatively, a 12-month plan is also available.
- Perth & Kinross Council – Provides a standard 10-month plan from April to January, with February and March as payment-free months. They also offer a 12-month option.
- Glasgow City Council – Allows payments over 10 months from April to January, with the option to extend to 12 months upon request.
- The City of Edinburgh Council – Offers both 10 and 12-month plans, with instalments due on the 1st, 5th, 16th, or last day of the month.
- Midlothian Council – Standard payments are made over 10 months, but for those paying via methods other than direct debit, the 12-month option isn’t available.
In both England and Scotland, council tax is divided into eight bands, ranging from A (the lowest) to H (the highest). The band assigned to your property is based on its rateable value — with higher-value homes falling into the more expensive bands.
However, there are potential ways to reduce your council tax, particularly if you’re receiving certain benefits like Jobseeker’s Allowance or if you fall into any of these categories:
- On a low income
- A student, or living with students
- In prison (except if incarcerated for failing to pay council tax)
- Living alone, or the only adult in your household
- A care leaver in Scotland, with exemptions between the ages of 18 and 26
- Severely mentally impaired, or living with someone who is
- A member of the armed forces, depending on your circumstances
- Living in a care home or hospital
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