A listener of Martin Lewis’s BBC podcast has successfully claimed a refund of nearly £6,000 in council tax after following the financial expert’s advice on a lesser-known discount. This significant refund highlights the potential impact of the severe mental impairment (SMI) discount, which Lewis has been advocating to be standardized across England and Scotland.
Mike, a caller to the podcast, shared his story, revealing that his elderly father suffers from vascular dementia. After hearing Lewis discuss potential council tax discounts for individuals with mental incapacity, Mike pursued the SMI discount. He reported obtaining a full 100 percent discount on his father’s council tax bill, which totals around £2,000 annually, in addition to a nearly five-year refund of charges that amounted to £5,989.30. He expressed his gratitude, stating that this refund was crucial given the rising costs of caregiving and tax bills.
Martin Lewis emphasized the importance of the SMI discount, which remains “hideously under-publicized.” He explained that this discount applies to individuals with severe impairments in social functioning, such as those suffering from conditions like Alzheimer’s, dementia, or severe strokes. Those who qualify for certain benefits may be eligible for the SMI discount, which significantly reduces their council tax obligations.
Lewis elaborated on how the discount operates: if a household consists of two adults and one qualifies for SMI, the council tax is adjusted as if only one person resides in the home. Consequently, the household receives a 25 percent reduction similar to a single occupancy discount. In cases where an individual lives alone and qualifies for SMI, they are entirely disregarded for council tax purposes, akin to the exemptions granted to all-student households.
The issue of backdated payments remains a point of frustration for Lewis. He noted that the policies regarding backdating vary from one council to another, emphasizing the need for standardization, especially in Wales, where rules have improved significantly. Discussions around standardizing application forms and literature for the SMI discount have taken place, particularly during consultations with officials, including former Deputy Prime Minister Angela Raynor.
Listeners are encouraged to tune into the full podcast for more insights on this important issue. Those who might qualify for the SMI discount are urged to explore their eligibility, as it can lead to significant financial relief.
