I have been diagnosed with dementia – does this make me eligible for the SMI discount?

No – having this or any other medical condition does not automatically make you eligible for the discount. To be eligible for the discount, you need a specific SMI diagnosis from your doctor. The law says that a person is regarded as SMI, or ‘severely mentally impaired’, if they have ‘a severe impairment of intelligence and social functioning (however caused) which appears to be permanent’. You can be diagnosed as SMI as a result of a range of conditions – which could include things like dementia, Schizophrenia, having had a stroke, or having had an accident which permanently affects your intelligence and social functioning. Many conditions can underlie being SMI, but no condition means a person is definitely also SMI. Being SMI is a doctor’s diagnosis in its own right.

Do I need to live alone to get the SMI discount?

No, but the number of council tax paying adults you live with does affect the level of reduction you can receive. If you are diagnosed as SMI by a doctor, entitled to at least one of the applicable benefits for the discount, and living alone or only with others who are SMI, you are exempt from paying council tax – you won’t have to pay anything at all. Alternatively, if you are diagnosed as SMI by a doctor, entitled to at least one of the applicable benefits for the discount, but live with one adult who is eligible to pay council tax, your household will receive a 25% reduction. This is because as you are exempt from paying council tax, the other inhabitant will qualify for the single person’s council tax discount. However, even if you have been diagnosed as SMI by a doctor and are entitled to at least one of the applicable benefits for the discount, but you live with two or more adults who are eligible to pay council tax, there will be no reduction. As there are two or more full council tax paying adults, they are not eligible for the single person’s council tax discount.

The council call handler told me I'm not SMI – what can I do?

No, your GP is not allowed to charge for a doctor’s certificate to support an SMI claim – British Medical Association regulations say they have to give these certificates free of charge. While there isn't a similar rule for specialist consultants (eg, psychiatrists), as a general principle they don’t ask for a fee.

Can I claim for someone who is now dead?

Not necessarily. While some councils do backdate, they are not legally obliged to – each council can decide their own policy. For example: We’ve heard some councils do not backdate at all; We’ve heard from several users that their council backdated the discount by six years; We’ve also heard that many councils backdate to the point that the individual was 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. However, following MSE campaigning, Wales has standardised its backdating process and all 22 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 wants the rest of the UK to take up this approach to backdating and is currently campaigning for this change.

I believe I'm SMI, but my doctor won't sign my form – what can I do?

No. If your council has told you that 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 could have got confused with the Disabled Band Reduction Scheme. This is another discount for people who need extra space because of a disability.

Can I claim for a previous address in another local authority?

No. If your council has told you that you can only get the SMI discount if you have less than a certain amount of savings – we've heard of cases where councils have said people can't have more than £16,000 of savings – they may have got confused with Council Tax Reduction Scheme (also known as Council Tax Support). This is a benefit to help pensioners on a low income or claiming certain benefits to pay their council tax.

My council says the discount can only be backdated to when I was receiving a certain benefit – is that right?

A council call handler isn't able to diagnose you as SMI or not – only a registered medical practitioner can diagnose someone as SMI. You should direct your council to the Local Government and Finance Act 1992 ( Schedule 1, Paragraph 2 ) which explains that only a registered medical practitioner can certify someone as SMI.

How to claim the 'severely mentally impaired' council tax discount

Who's eligible and what you need to know

Kit Sproson | Edited by Hannah McEwen

Updated 14 February 2023

Hundreds of thousands of people considered to be 'severely mentally impaired' in England, Scotland and Wales could be missing out on a council tax discount worth £100s – and even backdated payments worth £1,000s. We've been raising awareness of this discount for some years now, and since we began lots of people have successfully claimed. Read this guide to see if you can too.

With thanks to Gary Watson, deputy chief executive at the Institute of Revenues Rating and Valuation, for his contribution to this guide.

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.

MSE weekly email

FREE weekly MoneySaving email

For all the latest deals, guides and loopholes simply sign up today – it's spam-free!

Show less

FAQs Privacy Past Emails Unsubscribe

What is the 'severely mentally impaired' discount and how much is it worth?

The 'severely mentally impaired' (SMI) council tax discount is a reduction off of a household's council tax bill, worth, at a minimum, 25%, all the way up to, in some cases, the entire bill being wiped.

There are two steps to qualify. First, someone must be medically certified as being 'severely mentally impaired' – defined as having "a severe impairment of intelligence and social functioning (however caused) which appears to be permanent". It's a horrible term, so we'll refer to it as SMI for the purposes of this guide.

SMI is a medical diagnosis in itself, but the underlying cause could be a condition such as dementia (including Alzheimer's), profound learning difficulties, the result of a severe stroke or something else.

Second, in England and Wales, the person must also be receiving at least one of a number of benefits (see full list), such as disability living allowance. In Scotland, some councils consider it fine if you're just eligible for the qualifying benefit, but with others you'll need to be receiving it. We look in more detail at the exact eligibility criteria further down.

SMI adults 'disregarded' for council tax

What this means is that qualifying SMI adults are 'disregarded for council tax purposes' (there are other kinds of people who are also disregarded – full details in our Council tax discounts guide). Households containing disregarded persons, such as an SMI adult, could be entitled to claim:

A 100% council tax discount. This applies if an SMI adult lives alone, or if the SMI adult lives with one or more other adults who are also SMI adults or full-time students. All-SMI and all-student households (or a combination of both) are exempt from paying council tax altogether.
A 50% council tax discount. This applies if an SMI adult lives with one or more other adults who are also disregarded for council tax purposes, but for reasons other than being SMI or full-time students – for instance, because the other adults are classified as live-in carers. Households in which all occupants are disregarded get a 50% discount.

A 25% council tax discount. This applies if an adult who isn't disregarded for council tax purposes lives with an SMI adult, but no other adults. Or it would apply if that adult lives with someone who is SMI, plus other adults who are all disregarded for council tax purposes. In effect the single person's discount is applied to the household, as all bar one person living in the household is disregarded.

When an SMI adult lives with two or more other adults, but none of these other adults are disregarded for council tax purposes, then no council tax discount applies. This is because the full bill is the default setting in households that contain two or more adults who aren't disregarded for council tax purposes.

Please note that if the person diagnosed as SMI is younger than 18, then the SMI discount is irrelevant. This is because under-18s are exempt from paying council tax in the first place, meaning they're not taken into consideration for the purpose of the bill.

Why we've been campaigning on SMI for years

We began raising awareness of SMI back in 2016 and haven't stopped since.

This includes publishing a story in 2017 based on data obtained under the Freedom of Information Act and from a mystery-shopping exercise – see our Councils overcharging 10,000s MSE News story

Since then we've seen many successful applications for the SMI discount, such as Paul's. He said: "Thanks – with your guide, I just helped my parents claim back £2,400 council tax as dad has Parkinson's."

Or Rob, who said: "My dad lives alone and was diagnosed with Alzheimer’s disease last year. After learning about the rebate scheme from your website, I secured a refund of £1,242 for dad, plus exemption from further charges – saving him over £100 per month."

Jan reported this great success too: "My aunt has just 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 a long way towards getting her the support she now requires."

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 our biggest SMI successes was reported by Graham, whose wife applied for the discount on behalf of her 98-year-old mother, who has vascular dementia. Not only did the local authority reduce her council tax bill to zero, but she was also awarded a £15,000 backdated pay-out.

You can read more about this fantastic success in our MSE news story.

Who can get the discount and what's the exact eligibility criteria?

As outlined briefly in the chapter above, both of the following two criteria must apply for someone who's severely mentally impaired to qualify for this council tax discount:

They've been medically certified as being severely mentally impaired. For example, this may be the case if they have dementia (including Alzheimer's), Parkinson's, severe learning difficulties or have had a stroke. It will depend on each individual’s case though and simply having been diagnosed as SMI 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 this certification.

Important. Please note that not all people diagnosed with Parkinson's will necessarily fit the criteria of being severely mentally impaired.
They're receiving at least one of the following benefits (in Scotland, being eligible for but not actually receiving the benefit can be enough):
- 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
- Disability working allowance (based on getting income support including disability premium)
- Universal credit (including an element for limited capability for work or limited capability for work and work-related activity)
- Tax credits (including disability element)
- Employment and support allowance
- Universal credit

Important. It used to be the case England and Wales that the person only had to be eligible for – but not necessarily actually receiving – the qualifying benefit, but this changed following a High Court ruling in 2021.

The law is less clear cut in Scotland, and so with some Scottish councils it's fine if you're just eligible for the qualifying benefit, while with others you'll need to actually be receiving the benefit. Sadly it's a bit of a postcode lottery.

Thanks so much for the tip about council tax savings for people diagnosed as severely mentally impaired. I'd never heard of it until I saw your guide. 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.

Maggie, via email

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.

How to claim the discount

The process for making a claim varies by area, so you'll need to check your local authority's procedure.

Here are the basics for England, Scotland and Wales, with details below about a roughly similar discount in Northern Ireland.

Applying for the discount in England and Scotland

Get a claim form from your council. You'll need to contact your local authority for a claim form to register for a council tax discount (find contact details via the Government's 'Apply for Council Tax Reduction' service).
Then, you'll need a doctor's diagnosis. A registered medical practitioner must have diagnosed you 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 and they'll be contacted for confirmation. GPs are not allowed to charge you for this certification.
Fill the form in and send it off to your council. You may be asked to attach some supporting evidence, such as the doctor's diagnosis or evidence of eligibility for relevant benefits.

Procedures vary by council, so if you want to know how long it will take for the discount to be applied, it's best to check with yours.

Where your claim is accepted, the discount should then apply automatically each year, meaning you won't have to 'reapply' (though you should contact your council if you believe you no longer qualify for the discount).

Applying for the discount in Wales

We've been banging the drum about the SMI discount for several years now, including publishing our report The Disregarded Discount, which outlines several changes that councils should make to the process for getting discounts and rebates.

Following the report's publication, in a huge win for our campaign, the Welsh Government and all 22 Welsh local authorities agreed to make every change called for in the report. This means the application form for the discount has been standardised across the country, and backdating is allowed by EVERY council in a standardised way. Bravo Wales!

The Welsh Government has a dedicated webpage, with details of the discount and how to claim, and a leaflet of the information (which also helps council call-handlers).

If you're in Wales and want to claim a discount, you need to:

Print the application form from the Welsh Government website. It can be found here.
Get a diagnosis (or get a diagnosis for the resident you wish to claim for). 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 within the form.
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.

There's only a roughly equivalent discount in Northern Ireland

Because there is the rates system in Northern Ireland, rather than council tax, every property is valued individually.

The only roughly similar discount to SMI in Northern Ireland is the disabled person's allowance, which gives a 25% discount on rates for homes where a disabled person lives and the property has been adapted to suit their needs. See full info on the NIdirect website.

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.

MSE weekly email

FREE weekly MoneySaving email

For all the latest deals, guides and loopholes simply sign up today – it's spam-free!

Show less

FAQs Privacy Past Emails Unsubscribe

Rejected for an SMI discount? You can appeal

It's possible to appeal if you are initially rejected for a 'severely mentally impaired' council tax discount

Some people have reported struggling to claim the SMI discount, such as Philip, who said: "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."

If your council has rejected your application for the SMI discount, but you believe its decision was wrong and that you are indeed eligible, then there is an appeals process.

Make sure you 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're unhappy with how far the council is willing to backdate your claim, you can also appeal this (provided you have legitimate reason to dispute this).

The appeals process differs depending on where you live:

If you live in England

If the council rejects your SMI application but you disagree with its decision, you should first appeal directly to the council itself. The council will have two months to issue its final response.

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).
If the council doesn't respond to your initial appeal within two months, you can automatically take your case to the Valuation Tribunal Service. However, this must be done within four months of sending the initial appeal.

You can take your case to the Valuation Tribunal Service by filling in this online form.

If you live in Wales

A council has two months to respond to your application for SMI. If it rejects your application, it should write to you outlining its reasons and enclose a form with which you can appeal.

To appeal, you'll need to fill in the form and send it to your regional Valuation Tribunal for Wales (this must be done within two months of the council's decision).
If your council doesn't include an appeal form, you can request one either by calling 01633 266367 or by emailing correspondence@valuationtribunal.wales. Writing a letter directly to your regional Valuation Tribunal for Wales should also TECHNICALLY be enough to start the appeals process, but it's recommended you use the appeal form.

In the event that the council does not respond to your initial SMI application (ie, you don't get a reply) within two months, you can take your case automatically to the Valuation Tribunal for Wales. However, this must be done within four months of you having applied for SMI.

If you live in Scotland

If the council rejects your SMI application but you disagree with its decision, you should appeal directly to the council itself. Your council will then refer your appeal to the local Valuation Appeal Committee if either of the following apply:

Your council has replied to your appeal within two months without resolving the dispute.
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 written communication is sent within four months of sending your first appeal.

When the council refers your case, your local Valuation Appeal Committee will get in touch directly with you.

Can I complain about how the council has handled my SMI discount application?

If you are unhappy with the way your council handled your SMI discount application you can complain about its behaviour. By 'handled', we aren't referring to the council's decision about whether you are eligible for the discount or not, but about matters such as there being delays in the process, incorrect or misleading advice, or unacceptable staff attitude.

You should always complain using your council's own complaints service first, which you can find on your council's website.

If you're not happy with the council's response, there are different ombudsmen you can escalate your complaint to, depending on where you live:

If you're living in England

If you're not satisfied with the council's response to your complaint, or have not received a reply within 12 weeks, you can escalate 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. You should ensure that any complaint to the ombudsman is made within a year of your initial complaint to the council.

If you're living in Wales

If you're not satisfied with the council's response to your complaint, or have not received a reply within 12 weeks, you can refer your case to the Public Services Ombudsman for Wales, by filling in this online form or by sending a printable version in the post.

The address to send the printable version to is:

Public Services Ombudsman for Wales, 1 Ffordd yr Hen Gae, Pencoed, CF35 5LJ.

If you're living in Scotland

If you're not satisfied with the council's response and have exhausted its internal complaints process (which is a two-stage process), you can refer your complaint to the Scottish Public Services Ombudsman via an online form.

Make sure your council has confirmed in writing that you have completed its complaints process, otherwise you will not be able to escalate your case to the ombudsman.

Yet many people have struggled to claim, such as Philip, who said: "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."

SMI discount FAQs

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.

MSE weekly email

FREE weekly MoneySaving email

For all the latest deals, guides and loopholes simply sign up today – it's spam-free!

Show less

FAQs Privacy Past Emails Unsubscribe

MSE Forum

Have your say in our forum!

How to claim the 'severely mentally impaired' council tax discount

Spotted out of date info/broken links? Email: brokenlink@moneysavingexpert.com

Ovo launches one-year fixed tariff – but is it worth switching to?

24 March 2023

Almost every household has been charged the same price for their energy over the last year under the Energy Price Cap (EPC) and the Energy Price Guarantee (EPG), with no cheaper fixed deals to switch to. That has now changed, with Ovo launching a one-year fix for existing customers that undercuts the EPG level of £2,500 a year.
BT customers 'forced into overdrafts' after duplicate payment error - here's what you need to know

24 March 2023

BT customers have complained that they've been forced into overdrafts after payments were wrongly taken twice this month. The telecommunications giant said it will refund any duplicate payments taken automatically.
Martin Lewis: Four urgent ways you may be due £1,000s in tax back – if you're married, had a PPI payout, wear a work uniform or even just pay tax

23 March 2023

If you're married or in a civil partnership, have ever had a PPI payout, wear a uniform to work or pay any income tax, you could be due £100s or even £1,000s in tax back – but you'll need to check urgently.
Bank of England increases base rate to 4.25% – what the rise means for your mortgage and savings

23 March 2023

The Bank of England has increased the base rate from 4% to 4.25%. This rate is used by the central bank to charge other banks and lenders when they borrow money – and so it influences what borrowers pay and what savers earn.
Broadband and mobile users to be hit with price hikes of up to 17.3% in April – here's what you need to know

23 March 2023

Millions of BT, EE, O2, Plusnet, Shell, Sky, TalkTalk, Three, Virgin Media and Vodafone customers will be hit with price hikes of up to 17% this spring, on the back of a sharp increase in the cost of living.