How to claim the 'severely mentally impaired' Council Tax discount
Who is eligible and how to apply
Hundreds of thousands of people considered to be 'severely mentally impaired' could be missing out on a Council Tax discount worth £100s – and even a backdated payment worth £1,000s. We've been raising awareness of this discount for years now and many have successfully claimed since. Read on to see if it can help you too.
Important. This guide is aimed at those in England, Wales and Scotland.
What is the 'severely mentally impaired' discount?
The 'severely mentally impaired' discount is a reduction off of a household's Council Tax bill, worth between 25% off all the way up to the entire bill being wiped.
'Severely mentally impaired' is a horrible term, so for the purpose of this guide we're going to refer to it as SMI.
SMI is a medical diagnosis in its own right. However, the underlying cause of being SMI could be a condition such as dementia (including Alzheimer's), profound learning difficulties, multiple sclerosis, the result of a severe stroke, or something else.
The size of the SMI discount depends on who you live with
One factor which determines how much Council Tax a household pays is the number of 'qualifying adults' living there. While most people count as qualifying adults, some don't, such as those who are SMI, full-time students, under-18 and live-in carers.
This means that the size of an SMI Council Tax discount can vary:
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100% discount. If you're SMI and live alone.
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50% discount. If you're SMI and live with an adult carer.
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25% discount. If you're SMI and live with one qualifying adult.
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No discount. If you're SMI and live with two or more qualifying adults.
To be clear, even if there are under-18s, students or others with a SMI in the household as well, they don't change the situation above (as they're not counted as qualifying adults) – so a household containing a person who is SMI and an under-18 is still due a 100% discount.
Why we've been campaigning about SMI for years...
We've been raising awareness of SMI since 2016 and it's resulted in many successes:
My aunt received a refund worth over £7,000 and won't have to pay Council Tax again. She has been profoundly deaf since birth and now has dementia. At 96 and bed-bound, this will go towards getting her the support she requires.
Thanks so much for the tip about this Council Tax discount, I'd never heard of it. My aunt, who has dementia, just received a refund from her council for £4,200. Looking ahead, it also means she'll be saving around £1,200/year off her Council Tax bill – a significant sum for a 92-year-old with limited income.
Payouts can on occasions be even bigger than this, sometimes nearer to £10,000...
'Mum got a £15,000 Council Tax refund for her dementia and had future bills axed'
One of the biggest successes came from Graham, whose wife applied for the discount on behalf of her 98-year-old mother, who has vascular dementia. Not only was her Council Tax bill reduced to zero, but she was awarded a £15,000 backdated pay-out.
'We got a £7,500 Council Tax refund as our daughter has autism and we're her carers'
Another great success came from John and Nicola, whose adult daughter Kate has autism. The family got a £7,500 Council Tax refund and had future bills reduced by 50%, because Kate qualifies as SMI and both John and Nicola qualify as live-in carers.
'Mum got a huge £15,400 refund and won't have to pay Council Tax again'
Jane applied for the SMI discount on behalf of her 94-year-old mother, who has dementia and lives by herself. The application was successful, with the council issuing Jane's mum a £15,400 refund – dated back to when she first started receiving Attendance Allowance – and reducing her Council Tax bills to zero. A truly heartwarming success.
Watch: Martin's two-minute SMI discount explainer
This clip is from The Martin Lewis Money Show Live on Tuesday 12 November 2024, permission of ITV Studios. All rights reserved. Full episode on the ITVX Hub.
Who can get the SMI Council Tax discount?
There are two criteria that must both be met to qualify for this Council Tax discount:
Criteria 1. Be medically certified as 'severely mentally impaired'
For example, this might be through dementia (including Alzheimer's), Parkinson's, severe learning difficulties, multiple sclerosis, complications from cerebral palsy, or after a stroke.
This all depends on each person's individual case and be aware that simply having been diagnosed with one of these conditions doesn't automatically mean they qualify for the discount – a doctor must also certify they are 'severely mentally impaired'.
GPs are not allowed to charge you for severe mental impairment certification.
Criteria 2. Be receiving a qualifying benefit
The person also needs to be receiving at least one of the benefits below (in Scotland, being eligible for but not actually receiving the benefit can be enough, though it varies by council):
- Incapacity Benefit
- Attendance Allowance
- Severe Disablement Allowance
- Disability Living Allowance (higher or middle-rate care component)
- Increase in Disablement Pension (due to constant attendance being needed)
- Unemployability Supplement or allowance
- Constant Attendance Allowance
- Income Support (which includes a disability premium)
- Personal Independence Payment (standard or enhanced daily living component)
- Armed Forces Independence Payment
In England and Wales you can also be receiving:
- Disability working allowance (based on getting income support, like disability premium).
- Universal Credit (including an element for limited capability for work or limited capability for work and work-related activity).
In Scotland you can also be eligible for / receiving:
- Tax credits (including disability element)
- Employment and Support Allowance
- Universal Credit
Quick question:
What if I'm on the 'severe mental illness' register?
The abbreviation SMI can also refer to 'severe mental illness', but this is separate to being classed as 'severely mentally impaired'.
You might be on your GP's severe mental illness register if you're living with a severe psychological condition, such as schizophrenia, bipolar disorder or some form of psychosis (other conditions can also be included).
Being on the severe mental illness register doesn't mean you're automatically entitled to a 'severely mentally impaired' Council Tax discount, as the criteria is different. The SMI Council Tax discount tends to include those impacted by the likes of dementia, Alzheimer's, Parkinson's, severe learning difficulties, multiple sclerosis, complications from cerebral palsy and strokes.
However, you might have one or more conditions that fall into both categories.
How to claim the discount
The process for making a claim varies depending where you live, so you'll need to check your local authority's procedure – some are easier than others.
Below we talk through the basics for England and Scotland, then look at the application process in Wales, and finally explain details of a roughly similar discount in Northern Ireland.
Applying in England and Scotland
Here are the steps to take:
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Get a claim form from your council. Either find the SMI claim form on your council's website or contact the council and ask it for an SMI claim form.
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Get a doctor's diagnosis. A registered medical practitioner must have diagnosed you or the person as 'severely mentally impaired'. In some cases, you'll need to attach a written diagnosis to your claim, in others you just give your doctor's details .
Where your claim is accepted, the discount should apply automatically each year, so you won't have to keep reapplying (though contact your council if your circumstances change).
Can I backdate an SMI discount claim?
It's always worth asking when you submit your claim if it can be backdated. While some councils do backdate, they are not legally obliged to – each council decides its own policy.
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Some councils backdate the discount by six years.
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Some backdate to the point the individual was receiving a certain benefit.
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But we've also heard some councils don't backdate at all.
As we say, do ask...
'We used old bank statements to backdate our SMI claim by 17 years – and got £20,000
While some councils backdate, they may ask for evidence. This is something Paul from Edinburgh found when he applied, but the results were worth it.
Paul received a backdated SMI payout from his council in 2024 on behalf of his son, Stuart, who has cerebral palsy. But the £10,000 refund could have been bigger if the council were willing to backdate further than 2017 (Stuart had been in receipt of a qualifying benefit since 2007, but the Department for Work & Pensions could only provide evidence of this going back to 2017, as older information had been destroyed).
But following a tip from us, Paul asked his bank to dig out old bank statements from 2007, which did indeed show his son in receipt of Disability Living Allowance.
Following further discussions with the council, including a call with a tax assessor, the council agreed the bank statements were sufficient proof and it increased Paul and Stuart's backdated payout to £20,000 – one of the biggest SMI successes we've seen.
Applying in Wales
This SMI application form in Wales is standardised and every council backdates.
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Print the application form from the Welsh Government website.
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Get a doctor's diagnosis. To be eligible, the person claiming the discount must be diagnosed as SMI by a doctor. There's a section for your doctor to fill in on the form.
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Send it to your council's tax office. You can find details for your council here.
The form will ask for a date of diagnosis, so if you're owed a backdated rebate, your application form will cover this.
For more information, see the Welsh government website or this handy leaflet.
There's only a roughly equivalent discount in Northern Ireland
Northern Ireland doesn't have Council Tax. It uses the 'rates' system.
The only similar discount to SMI is the Disabled Person's Allowance, which gives a 25% discount off the rate of a disabled person's home if it's been adapted to suit their needs.
Let us know how you've got on
Whether you've successfully claimed, or have tried to but had problems, tell us at smi@moneysavingexpert.com. Or see the Disability money matters forum board.
Rejected for an SMI discount? You can appeal
If your council has rejected your application for the SMI discount but you believe its decision was wrong and that you are eligible, then there is an appeals process.
Make sure to take note of any relevant timescales before you appeal, because if you leave it too late then you will probably have to start the entire SMI application process again.
Do note that if you have been accepted for an SMI discount but you disagree with how far the council is willing to backdate your claim, you can also appeal this.
The appeals process differs depending on whether you live in England, Wales or Scotland.
"My wife started receiving benefits for Parkinson's in 2001. My council originally told me that we didn't qualify as we had savings. However, it eventually admitted it had given us wrong information and we were given a 25% discount."
Making an appeal if you live in England
You should first appeal directly to the council. It will then have two months to respond.
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Should the council continue to disagree, you can then take your case to the Valuation Tribunal Service (this must be done within two months of the council's final response).
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If the council doesn't respond to your appeal within two months, you can take your case to the Valuation Tribunal Service (this must be within four months of first appealing).
You can take your case to the Valuation Tribunal Service by filling in this online form.
Making an appeal if you live in Wales
The council should write to you outlining its reasons for rejecting your SMI application and enclose a form with which you can appeal.
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Fill in this form and send it to the Valuation Tribunal for Wales (this must be done within two months of the council rejecting your application).
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Alternatively, download an appeal form from the Valuation Tribunal for Wales. Or call 01633 255003 or email correspondence@valuationtribunal.wales and ask for a copy.
If the council doesn't respond to your initial SMI application within two months, you can take your case straight to the Valuation Tribunal for Wales (this must be done within two months).
Making an appeal if you live in Scotland
You should first appeal directly to the council. It will then refer your appeal to the local Valuation Appeal Committee if either of the following apply:
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Your council has replied to your appeal within two months without resolving the dispute.
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The council has not replied within two months and you have sent another final written communication to your council in which you say you'd like to appeal to your local Valuation Appeal Committee (and this is sent within four months of first appealing).
If the council refers your case, the Valuation Appeal Committee will get in touch directly.
Quick question:
Can I complain about how the council has handled my application?
You can complain about the way a council has handled your SMI discount application. We aren't referring to the council's decision about whether you are eligible for the discount or not, but about delays in the process, incorrect or misleading advice, or unacceptable staff attitude.
In the first instance, you should complain directly to the council.
Then, if you're not happy with the council's response, you can escalate your complaint to an Ombudsman. More details on the process below:
Complaining in England
If you're unhappy with the council's response, or don't get one within 12 weeks, you can take your case to the Local Government and Social Care Ombudsman. This can be done by filling in an online form or by calling 0300 061 0614.
A complaint to the Ombudsman should be made within a year of complaining.
Complaining in Wales
If you're unhappy with the council's response, or don't get one within 12 weeks, you can refer your case to the Public Services Ombudsman for Wales. This can be done by filling in this online form.
Complaining in Scotland
If you're not satisfied with the council's response and have exhausted its complaints process (a two-stage process), you can refer your complaint to the Scottish Public Services Ombudsman by filling in this online form.
Your council should confirm in writing that you have completed its complaints process, otherwise you won't be able to escalate your case to the Ombudsman.
SMI discount FAQs
I have dementia – am I eligible for the SMI discount?
Having dementia or another condition doesn't automatically qualify you for the SMI discount. You need a specific SMI diagnosis from a doctor.
The law says a person is regarded as SMI if they have 'a severe impairment of intelligence and social functioning (however caused) which appears to be permanent'. This can be the result of a range of conditions, such as dementia, Schizophrenia, a stroke and others.
Many conditions can underlie being SMI, but none mean a person is definitely SMI. Being SMI is a doctor's diagnosis in its own right.
Do I need to live alone to get the SMI discount?
You don't have to live alone to get the SMI discount, but the number of adults in your household does impact the size of the discount.
Can a GP charge me for SMI certification?
GPs can't charge for SMI certification – British Medical Association regulations say they have to give these certificates free of charge.
While there isn't a similar rule for specialist consultants (for example, psychiatrists), as a general principle they don't ask for a fee.
Can I backdate an SMI claim?
In England and Scotland, while some councils do backdate, they are not legally obliged to – each council can decide its own policy. For example:
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We've heard some councils do not backdate at all.
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We've heard some councils backdate the discount by six years.
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We've heard some councils backdate to the point the individual started receiving a certain benefit, such as Attendance Allowance.
All the above approaches are legally permitted, as there is nothing in law which says a council has to have a particular backdating policy.
In Wales, following MSE campaigning, the government there standardised its backdating process, so all Welsh local authorities backdate the SMI discount to when you were diagnosed as becoming SMI (note this could be prior to when the diagnosis is actually made).
MSE hopes the rest of the UK takes up the approach used in Wales.
Do I need to have made adaptations to my home?
If your council says you can only get the SMI discount if you've had adaptions to your home, or if you need to use a wheelchair indoors, it's likely to be confusing this with the Disabled Band Reduction Scheme (a discount for people who need extra space because of a disability).
Can I get the discount if I have savings?
We've seen some councils mistakenly tell people they can't qualify for the SMI discount if they have more than £16,000 in savings – this is incorrect. They may be confused with Council Tax Support, a benefit to help people on a low income or claiming certain benefits.
Can I claim for someone who is now dead?
Potentially, as the law allows each council to decide its own backdating policy. If you lived with someone who was SMI who's since died, or you are the executor to their will, you may be able to claim a rebate for the overpaid Council Tax – but this will depend on the policy of the council.
I think I'm SMI but the doctor won't sign my form?
When seeking to get an SMI diagnosis it's important to give the doctor the most accurate information, so they can decide what's best for you. However, if you think you have been wrongly refused an SMI diagnosis, the charities Alzheimer's UK and Rethink Mental Illness can help.
If you regularly see another medical practitioner other than your GP – such as a consultant or psychiatrist – you can ask them for a diagnosis.
You can also ask your GP to arrange a second opinion, either from a specialist or another GP. While it is worth asking, your GP doesn't have to do this if they don't think it's necessary. If they refuse, and you still think you might qualify for a diagnosis, you may wish to change your GP.
Can I claim for a previous address?
Depending on the backdating policy of the council you're applying to, you may be able to claim for a previous address. However, each council has a different backdating policy, so it may not be possible.
Can the SMI discount apply to a second home?
If you qualify for an SMI discount, the discount will apply to your main residence, not any other properties you own – for example, a second home.
Sometimes a council may offer a separate discount on a second home or empty property. See our Council Tax discounts guide for more information.
Other MSE council tax guides...
Council tax discounts. Check if you can get 25% or 50% off your bill – some shouldn't be paying at all.
How to reclaim overpaid council tax: Check how much you could be owed.
How to check & challenge your council tax band: Up to 400,000 households are thought to be in the wrong band – and could be owed £1,000s.
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