Council tax rebates for mental disability still going unclaimed

Families are claiming as much as £7,000 in council tax refunds thanks to an awareness campaign about a little-known discount for the severely mentally impaired (SMI).

Someone who has been medically certified as having a permanent condition that affects their intelligence and social functioning (such as Alzheimer’s, but many other conditions apply) is “disregarded for council tax purposes” in England, Scotland and Wales.

If the person diagnosed as SMI lives with just one other adult, the council tax discount is 25%. If the person diagnosed as SMI lives alone, the discount rises to 100%.

Families who only discover the discount long after a parent has, say, dementia, can apply for a backdating of the discount at some – though not all – councils.

The campaign is being led by MoneySavingExpert.com and the Alzheimer’s Society.

Christine Peel says: “I had no idea people with mental impairments do not have to pay.” Her mother, Joan, has Alzheimer’s and Parkinson’s. Peel found out about the discount through MoneySavingExpert six months ago. When diagnosed in 2005, her mother lived alone in South Shields until she entered a care home in 2014. Peel received a backdated 100% discount from South Tyneside council for the time she lived at home with the conditions, totalling £6,399.

Richard Hawker claimed back £7,000 of backdated council tax on behalf of his 96-year-old mother, who had a cerebral stroke in 2008, causing dementia-like symptoms. She received a reduction as far back as 2008. Now, as she lives alone, she has a 100% discount.

An investigation by MoneySavingExpert last year revealed that tens of thousands of people are likely to be missing out on the discount, which is estimated to be worth an average of £400 a year.

But take-up remains low, and patchy from once council to the next. In Spelthorne borough council in Surrey, the website found only 10 residents had claimed, while in Ashford in Kent the figure was 423, despite having similar populations.

One problem is that many councils give out wrong information to claimants, which often deters them from making a claim.

Many councils say claimants must be in receipt of one of a number of benefits – such as attendance allowance – to make a claim. But one only has to be eligible for the benefit, not actually in receipt of it, to be able to claim.

Another issue is the definition of SMI. According to the Alzheimer’s Society, a person must be diagnosed as having “severe impairment of intelligence and social functioning which appears to be permanent, and has a certificate confirming this impairment from a registered medical practitioner”.

Lee Allen, the Alzheimer’s Society’s services manager for Worcestershire, says: “Lack of awareness and information about council tax discounts, and other financial support out there, only makes the situation harder for people with dementia. It’s crucial that discounts are clearly signposted locally, and simple to apply for, to make sure people get the support they are entitled to. You can find support and advice about dementia by speaking to our national helpline on 0300 222 11 22.”