Your council tax goes up in April — here’s what it pays for
Council tax is going up yet again this April in England and Wales, with the average bill expected to increase by £106.
It is the third increase since the pandemic, as councils buckle under the financial strain and struggle to generate revenue.
Some councils are set to impose council tax increases while also slashing public services in an effort to balance the books.
Here is everything you need to know about the council tax rise, and what exactly your council tax pays for:
What does the council tax pay for?
The breakdown of council tax spending varies county to county, but council tax budgets are typically spent on local services including: libraries, education, waste disposal, police and fire services, road repairs and maintenance, and street lighting.
“The council tax can be spent on any service – it is not ring fenced,” said Greg Burns, a spokesperson from the Local Government Association. He added that there’s no available data to show how each council spends their money.
For councils with social care responsibilities, children’s services and adult social care now account for 65 per cent of a local authority’s budget, with councils spending less on other services as a result, according to an analysis by the County Councils Network.
That figure has jumped nearly 10 per cent in the past decade, as the number of children in care rises along with the number of seniors.
How is the tax determined?
How much you pay is determined by your council tax band based on the value of the property where you live. Bands range from A to H, or A to I in Wales.
The council tax for a typical band D property in England was around £2,065 in the 2023/24 financial year, but the figure varies based on locality and exact property value.
Councils use the 1991 valuation of the property to calculate the tax, or the 2003 value for properties in Wales.
How much is it going up by?
The bill for an average band D property is expected to rise to nearly 5 per cent this year, raising it to £2,171 annually.
All of England’s upper-tier councils are also expected to apply a 2 per cent increase for social care. Upper-tier councils cannot raise the tax beyond 4.99 per cent without a referendum.
In London, the average band D bill will be £1,422, a rise of 5 per cent from the last financial year. Some councils with financial difficulties have permission to raise their bills higher; Woking, which effectively declared bankruptcy last year, will raise its bills to 9.99 per cent.
In Scotland, bills are expected to stay the same.
Who has to pay?
Anyone over 18 who owns or rents a home is required to pay the council tax. In England and Wales, there are some exceptions, however:
- properties occupied only by students
- diplomats
- live-in carers
- those with severe mental disabilities
How to get a discount on your tax
Those who qualify for discounts or exemptions still need to apply for the discount with the council.
If you live on your own or if everyone else in your household is exempt, you may receive a discount.
Those who are on apprentice schemes are also eligible for a discount. You may also receive a reduction if you are on a low income or receive benefits.
If you receive a discount by accident, be sure to flag it with your local council, or you may receive a fine.
