Six local authorities have been granted special permission to bypass the council tax cap of 5% this year – part of an effort to help them avoid bankruptcy.
Council taxes are due to rise on 1 April, adding hundreds to living costs as households continue to battle with other rising expenses, including energy bills, water bills, and mortgage repayments.
Angela Rayner, the deputy prime minister and secretary of state for local government, said the increases were needed to help prevent the councils from “falling further into financial distress”.
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A record number of councils asked for permission to hike bills above the 5% limit this year.
Rayner added that the government had only agreed to a “limited number of requests” and that, in all cases, it had not granted the full amount. She also indicated that the six councils in question will still charge less than similar areas.
Which councils are increasing bills the most?
These are the local authorities where residents will pay up to 10% more in their council tax bill:
- Bradford: 10%
- Newham: 9%
- Windsor & Maidenhead: 9%
- Birmingham: 7.5%
- Somerset: 7.5%
- Trafford: 7.5%
Taxpayers in other local authority areas could see their bills rise by up to 5% in 2025/26, if their council has social care responsibilities. Areas without social care responsibilities are permitted to hike bills by up to 3%.
Raising council tax bills by more than these levels would usually trigger a local referendum, unless the government grants special permission.
How can I save on my council tax bill?
You may be able to make a large saving by checking your council tax band. If you aren’t in the correct bracket, your council tax could be reduced and you might even be due a large refund.
Some people are also eligible for a discount or reduction in their council tax bill based on their personal circumstances. For example, those who live alone are entitled to a 25% discount. There are also discounts for people with certain disabilities. Similarly, households where everyone is a full-time student don’t have to pay any council tax at all.
If you are on a low income or live with someone who is, you could also qualify for a council tax reduction. The exact criteria vary from council to council.
Ultimately, the best way to work out what you are eligible for is to track down your local council website. If you can't find the information you need there, it is worth getting in touch with the council directly.
Finally, it is worth pointing out that some of the rules have changed in recent years. For example, second homes used to qualify for a discount on council tax bills, however laws which came into force in early 2024 mean local authorities can now charge a council tax premium of up to 100% on second homes. The new rules are part of a bid to increase the availability of housing stock.
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