A man with vascular dementia has secured a 100% council tax discount and a backdated refund of £5,989.30 after his daughter acted on advice from Martin Lewis. The case was shared on BBC Sounds, where the Money Saving Expert founder described the rule as "hideously underpublicised".
How the discount was secured
The listener, who contacted Lewis's programme, explained that her elderly father had been assessed for the Severe Mental Impairment (SMI) discount. She wrote: "My ears pricked up some months ago when you talked about potential discounts for mental incapacity on council tax bills. My elderly father has vascular dementia and thanks to your programme I’ve been able to obtain a 100% discount on his council tax bill, some £2,000+ a year, albeit he already receives a 25% single occupancy discount."
The council also refunded nearly five years of charges, resulting in a payment of £5,989.30 to his bank account. She added: "Amazing, things are tight with carer costs and increasing tax bills, so this is a lifesaver thanks again."
Who qualifies for the SMI discount
Martin Lewis explained that the SMI discount applies to someone with a "severe loss of social functioning", which is common with Alzheimer's, dementia, severe strokes, and severe Parkinson's. Those who are also eligible for certain disability benefits may qualify.
Lewis said: "They can get the SMI discount on council tax. It is hideously underpublicised and I do hear of, council officers who, their frontline staff don’t even know how it works. I’ve campaigned on it for a long time, Wales actually improved its system hugely, and we need England and Scotland to follow."
Backdating rules vary by council
Lewis noted that if a person lives alone and is disregarded for council tax, they may not have to pay council tax at all, similar to all-student households. He added: "Backdating is council by council, though in Wales they have standardised rules."
Whether a backdated payout is available depends on the individual council's policy, but the example shows that significant refunds are possible where the discount is applied retrospectively.
