Council tax bills may rise by up to 4% from April

The Government will give all local authorities the power to raise council tax by up to 2% in the next financial year, while local authorities with adult social care responsibilities will be able to raise rates by up to 4%.

These rises can be made without consulting residents, though the council would need to hold a referendum for any increases greater than this.

The average band D council tax on a home in England is currently £1,750, so a 4% rise would bring this to £1,820 – a hike of £70.

And while the maximum increase is lower than last year's – when local authorities with adult social care responsibilities were able to raise council tax by up to 5% – it's well above inflation, which stood at 1.5% in November 2019.

Many may be able to cut or manage their council tax bills using the steps below – see our Council Tax Bands guide for full help.

In England you can pay your bills over 12 months

Council tax payments are often made over 10 months, but in April 2013 the Government announced that all councils in England must allow you to pay your council tax over 12 months.

If you live in England, contact your council and tell it you want to change to the 12-month payment schedule.

Check you're in the right council tax band

Up to 400,000 households in England and Scotland could be overpaying on their council tax bills because they're in the wrong band.

And if you successfully challenge your council tax band, you could slash the cost of your current bill and even get a rebate for what you've overpaid in previous years – we've seen payouts of £1,000s.

You can do this by asking your council for a reassessment of your tax band. But remember that if you do this your band – and your bill – could go up as well as down, so make sure you've done the full checks before challenging.

We've full info on how to check and challenge your council tax band in our Council Tax Bands guide.

Live alone? Get a 25% discount

If you live alone or are classed as the only adult in the home in England, Scotland or Wales, you may be eligible for a single person's discount, meaning a 25% reduction.

Full-time student? You are exempt

If you're a full-time student living alone or with other students you don't need to pay council tax, no matter how many of you live together.

If you're a full-time student living with a non-student, you're disregarded, so the non-student is treated as though they live alone and can claim the 25% single person's discount.

If you're a full-time student living with more than one non-student, you're still exempt, but because there are two non-students the house has to pay the full 100% charge.

Are you eligible for a 'severe mental impairment' discount?

If someone's medically certified as being 'severely mentally impaired' (SMI) – if they have Alzheimer's or learning difficulties, for example – they'll be disregarded for council tax purposes in England, Scotland and Wales.

So if you're diagnosed as SMI and live alone, you won't need to pay any council tax.

And if you don't have SMI yourself, but live with someone who's diagnosed as SMI and no other adults (or only other adults who have also been disregarded for council tax purposes), you'll get a 25% discount.

See our Council tax discounts for 'severe mental impairment' guide for full information.

Moved home since 1993? Check if you're due a council tax refund

As council tax is paid ahead of time, it's common to be in credit with your council when you move – but many don't know to claim this money back.

A MoneySavingExpert.com investigation earlier this year found that there's over £230 million in 1.7 million closed or inactive council tax accounts.

If you've overpaid council tax, you can claim it back by getting in touch with your local authority. See our Reclaim overpaid council tax guide for more info.