Medical conditions that could make you exempt from paying council tax

You could be partially or completely exempt from paying council taxif you suffer from one of several medical conditions. Hundreds of thousands of people across England, Scotland and Wales could be entitled to this reduction without realising it, according to MoneySavingExpert (MSE).

The average annual band D bill - the standard measure of council tax- stands at £2,280 per year in total - meaning being eligible for a council tax reduction could see households save hundreds of pounds annually.

This comes after council tax bills were hiked in April, with nearly all councils pushing bills up by close to, or at, the maximum rate allowed. On average, council tax bills have risen by 5.1% over the past two years. This comes after news of state pension payment changes for August as people told to 'be aware'.

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Since April 1, the average annual band D bill - the standard measure of council tax - totals £2,280 per year. That represents a £109 jump from last year and a 20% surge from five years ago when the average bill stood at £1,898.

However, people who are classified as "severely mentally impaired" may be able to claim up to 50% off their bill - or in the most severe cases have the entire bill scrapped completely, reports the Manchester Evening News.

According to the Government, there are two criteria a person needs to meet to qualify for the discount:

• They must have a certificate from a medical professional confirming that they're "severally mentally impaired" (i.e. GP)
• They must be able to prove they're claiming certain benefits

The medical conditions that may exempt you from paying council tax

The government does not define what it means by "severely mentally impaired" but MSE suggests there are several conditions that may qualify for the discount.

According to MSE, the following conditions may qualify:

• Dementia (including Alzheimer's)
• Parkinson's
• Severe learning difficulties
• Multiple sclerosis
• Cerebral palsy
• Severe stroke
• Schizophrenia

However, whether the discount is granted or not will depend on an individual's own circumstances and a diagnosis of one of the above does not necessarily mean the discount will be granted.

MSE explains: "You can be diagnosed as SMI as a result of a range of conditions – which could include things like dementia, Schizophrenia, multiple sclerosis, 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."

To be eligible for the reduction, a GP must supply a certificate confirming that the patient is "severely mentally impaired". Under the law, a person may be classified as such if they have "a severe impairment of intelligence and social functioning (however caused) which appears to be permanent".

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What other requirements must be satisfied?

To be eligible for the reduction you must also be able to demonstrate you are receiving certain benefits, or in some cases, just that you are entitled to them.

Eligible benefits may include:

• Attendance Allowance
• Universal Credit
• Disability Living Allowance
• Income Support
• Personal Independence Payment

Additional details can be found on thegov.uk website and local councils can provide complete eligibility requirements for the reduction on their websites.

How much can you save on your council tax bill?

If you live alone then your council tax reduction will be 100% - meaning you won't have to pay any council tax. You could potentially receive a 50% discount on your council tax bill if you only live with individuals who are 'disregarded' from council tax - those not counted when determining the number of people in a household, such as individuals under 18, those on certain apprenticeship schemes, full-time students, live-in carers and diplomats.

If you reside with one other individual who is not discounted, then you can obtain a 25% discount. Depending on the local council to which you pay your tax, you might also be eligible for back payments.

As per MSE, some councils will retroactively apply the discount by six years, but each council has its own policy and they are not legally required to backdate the discount.