A man has successfully claimed a refund of £5,989.30 in council tax after following advice from personal finance expert Martin Lewis. During a recent episode of his BBC podcast, Lewis highlighted a little-known discount aimed at individuals with severe mental impairments, which could benefit thousands of people across the UK.
The personal finance advocate has been vocal about the need for changes in the regulations governing the severe mental impairment (SMI) discount in England and Scotland. According to Lewis, this discount is “hideously under-publicised” and can be applied when a person suffers from conditions such as dementia or has experienced a stroke with similar cognitive effects. With approximately 980,000 individuals diagnosed with dementia in the UK, the potential impact of this discount is substantial.
In the podcast, a caller named Mike shared his experience of obtaining the discount for his elderly father, who has vascular dementia. “My ears pricked up some months ago when you talked about potential discounts for mental incapacity on council tax bills,” Mike recounted. He explained how his father’s council tax bill was reduced by 100 percent, saving £2,000 annually, in addition to a pre-existing 25 percent discount for single occupancy. The council also refunded nearly five years of charges, resulting in a significant financial relief for the family.
Lewis elaborated on the workings of the SMI discount, stating, “What it effectively means is someone who has a severe loss in social functioning—common with Alzheimer’s, dementia, or severe strokes—can qualify for this discount.” He pointed out that eligibility also hinges on the individual receiving certain benefits. If a household includes a person who qualifies for the SMI discount, the council tax is calculated as if only one person resides there. This effectively grants a discount equivalent to the 25 percent single occupancy rate.
He emphasized the inconsistency in how councils handle back payments, noting that regulations differ from one council to another. “In Wales, they have standardised rules,” Lewis remarked. He has been advocating for a more uniform system across England and Scotland and has been actively involved in discussions with officials, including Angela Raynor, when she served as Deputy Prime Minister. These discussions aim to standardise application forms, improve literature, and clarify back payment policies for those with SMI.
The conversation underscores the importance of awareness around financial benefits available to individuals with severe mental impairments. With many councils still lacking comprehensive knowledge about the SMI discount, Lewis urges people to seek information and consider applying if they or their loved ones are eligible.
For those interested in learning more, the full podcast is available for listening through the BBC platform.
