Here, Telegraph Money explains how council tax bands work and how to challenge yours if you think you’re in the wrong one. We’ll also reveal the discounts you can claim to knock hundreds off your yearly bills. In this guide we will cover:
Council tax was introduced in 1991, replacing the much-maligned poll tax – a flat fee paid by each individual, regardless of income.
Council tax goes towards public services such as bin collection, street lighting, and also police and fire services. But an increasingly large portion goes to social care. According to the Local Government Association, almost 60p of every £1 paid in council tax is spent on social care for children and adults due to rising demand.
As government support has dried up, council tax has become the main source of funding for local services. The Institute for Government, a think tank, estimates that local councils get half of their funding from council tax and the rest from government grants and retained business rates.
A spokesman for the Local Government Association, which represents more than 350 councils across England and Wales, said: “In recent years, the Government has relied on council tax raising powers to increase councils’ core spending power.
“While council tax is an important funding stream, it has never been the solution to the long-term pressures facing councils, particularly in high-demand services like adult social care, child protection and homelessness prevention.
“Councils continue to face the tough choice about whether to increase council tax bills to bring in desperately-needed funding to provide services at a time when they are acutely aware of the significant burden that could place on some households.”
In England, the property is placed into one of eight bands (A to H) depending on what their house would have been sold for on 1 April 1991.