Personal finance expert Martin Lewis has issued an urgent warning to millions of unpaid carers across England and Wales, urging them not to rely on information from their local council about vital council tax discounts. An investigation by his website, MoneySavingExpert.com (MSE), has uncovered widespread errors on official council websites that could be costing households hundreds of pounds each year.
Widespread Errors on Official Council Guidance
A detailed spot check of over 200 council websites revealed that at least 69 local authorities are publishing incomplete or incorrect eligibility rules for the live-in carer council tax discount. This means at least one in five councils checked were providing misleading guidance online. The list includes seven London boroughs: Barnet, Bromley, Camden, Haringey, Hounslow, Merton, and Waltham Forest.
The discount, which can reduce a council tax bill by 25% or even 50%, is typically worth around £500 annually for a 25% reduction. This amount could be significantly higher if backdated. A further 80 councils failed to provide clear online information about the qualifying benefits needed to claim, which MSE says is likely deterring a 'decent chunk' of the UK's estimated five million unpaid carers from applying.
Why Are Councils Getting It Wrong?
The root of the problem appears to stem from a failure to update online guidance following rule changes made in 2013. Since that year, additional disability benefits have counted towards eligibility for the discount. However, many council websites have continued to list only the old, outdated criteria, effectively misleading residents.
Prior to 2013, qualifying benefits included the higher rate of Attendance Allowance and the higher rate care component of Disability Living Allowance. Post-2013, eligibility was expanded to include benefits such as:
- Armed Forces Independence Payment (any amount)
- Attendance Allowance (lower rate)
- Disability Living Allowance care component (middle rate)
- Personal Independence Payment daily living component (both standard and enhanced rates)
It is these newer benefits that councils have largely and mistakenly excluded from their online information.
Who Qualifies and What Should Carers Do?
The live-in carer discount works by 'disregarding' the carer for council tax purposes. To qualify, an applicant must provide at least 35 hours of free care per week to someone in their household who is not their spouse, partner, or child under 18. The person receiving care must also be in receipt of one of the qualifying benefits.
Martin Lewis has a clear message for carers: "Unpaid carers can't trust councils' information about carers’ council tax discounts." He urges all carers who previously thought they were ineligible after checking a council website to check again using independent sources like Carers UK or MoneySavingExpert.com.
Carers who believe they were wrongly told they did not qualify should contact their council to request a reassessment. They can also ask for any discount to be backdated to when they first became eligible, which in some cases could lead to refunds of £1,000 or more. Lewis also criticised the UK Government's own guidance, noting that the main Gov.uk council tax pages do not list the qualifying benefits, making it harder for people to check.
Helen Walker, chief executive of Carers UK, emphasised the severe financial pressure unpaid carers are under, stating that nearly half have cut back on essentials in the past year. "It’s simply unacceptable that carers are being given the wrong information when they are so urgently in need of help," she said, adding that correct council tax information could be a 'lifeline' for struggling families.
MSE has written to all councils identified in its investigation and will report the issue to the Ministry of Housing, Communities and Local Government.
