Possible Government plans to remove single occupancy council tax discount sparks concern for individuals with dementia
There has been speculation that the government may remove the single occupancy council tax discount in the upcoming budget announcement on October 30, 2024. This potential change has raised concerns for individuals living with dementia and other forms of severe mental impairment (SMI).
Under current laws, individuals living alone with dementia or SMI are entitled to a 25% discount on their council tax. However, if the proposed change goes ahead, these individuals may lose their discount and have to pay the full amount.
The law states that individuals with SMI may be “disregarded” for the purpose of assessing council tax. This means that they are not taken into account when determining the amount of council tax to be paid by a household. This has allowed households with two people, one of whom has dementia, to claim the person with SMI as “disregarded” and receive the single occupancy discount. However, if the proposal goes ahead, these households will no longer be eligible for the discount.
Furthermore, individuals living alone with dementia or SMI are currently exempt from paying council tax. But if the change is implemented, they may have to pay the full amount. This would greatly impact pensioners, as over 90% of people living with dementia are over the pensionable age. This, coupled with the removal of the winter fuel allowance, would be a significant financial burden for them.
Derek Brown, a resident of Northallerton, North Yorkshire, has been campaigning for the start of council tax SMI disregards from the date of GP certification. His wife, Margaret, was diagnosed with Alzheimer’s Disease in 2018 and is now confined to a wheelchair. Brown has taken his local council to the High Court on this issue and conducted a Freedom of Information request in December 2020 and January 2023.
According to the Freedom of Information request, as of January 1, 2023, a total of 250,534 individuals with SMI were receiving discounts and exemptions in England, Wales, Scotland, and Northern Ireland. This includes 201,601 in England, 12,641 in Wales, 36,101 in Scotland, and 191 in Northern Ireland.
The Local Government Finance Act 1992 states that individuals with SMI should be disregarded for the purpose of assessing council tax. However, the proposed change would likely impact the financial stability of many individuals living with dementia or SMI. The government has yet to confirm if this change will be included in the budget announcement on October 30, 2024.
For more information on council tax discounts and exemptions for individuals with disabilities, visit GOV.UK. According to the Alzheimer’s Society, only 7.8% of individuals with dementia are under the age of 65. This means that 92% of individuals living with dementia are over the pensionable age.
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.