The 'severely mentally impaired' (SMI) Council Tax discount is a reduction of a household's Council Tax bill, worth, at a minimum, 25%, all the way up to the entire bill being wiped in certain cases.
Information on SMI Council Tax discounts from the Money Saving Expert website and YouTube channel is available here.
SMI diagnosis
SMI is its own medical diagnosis, requiring medical certification from a doctor, and can have various causes, including a brain injury.
- To be identified as SMI you need to be diagnosed by a doctor. Possible qualifying conditions include brain injury, stroke, dementia, Parkinson's, MS, and complications from cerebral palsy.
- The Local Government Finance Act 1992 states: "a person is severely mentally impaired if he has a severe impairment of intelligence and social functioning (however caused) which appears to be permanent".
- A diagnosis of SMI depends on your individual case, i.e. having had a brain injury does not lead to automatically being diagnosed as SMI.
Council Tax SMI reduction
There are two requirements to become eligible for the discount:
- To be eligible for the SMI Council Tax discount, you need to be diagnosed as 'severely mentally impaired' as outlined above.
- You also need to be receiving one of a range of benefits (such as PIP, incapacity benefit or income support) if living in England or Wales. To qualify in some Scottish councils, you need to be eligible for one of these benefits, meaning you don't need to be receiving it to qualify for the SMI discount but for others you need to be receiving it as in England and Wales.
The discount is based on how many adults live in your household.
- If you live on your own and have a SMI diagnosis, you will receive 100% discount and will pay not any Council Tax.
- If you have a SMI diagnosis and live with a carer, your household’s Council Tax bill is reduced by 50%.
- If your household includes one adult who qualifies for Council Tax (i.e. they are not a carer or student or anyone else listed here) you get a 25% reduction.
- If your household includes two or more adults who qualify for Council Tax, there is no reduction.
Steps to apply
- You must have a SMI diagnosis and be in receipt of at least one of a range of benefits (England and Wales) or qualify for one of those benefits (in Scotland). Some councils might ask for a written diagnosis from your doctor, but otherwise you’ll just need to provide your doctor’s details.
- You must apply for a Council Tax Reduction through your local authority in Scotland and England, which you can find here. In Wales, you can print and complete the form from the Welsh Government and send it to your local council.
Backdated payments
If you apply for a SMI Council Tax discount, you may be able to get your claim backdated. Councils are allowed to have their own policies on this – some will backdate, and some will not, but it is worth asking at the time that you apply for the discount.
Note:
Instead of Council Tax, Northern Ireland uses a rates system, where each property is individually valued. The closest equivalent to the SMI discount in Northern Ireland is the Disabled Person's Allowance, which provides a 25% discount on rates for homes where a disabled person resides and the property has been modified to meet their needs. Further details can be found on the NIdirect website.
Further details
Apply for the Council Tax reduction
Details of the discount scheme (UK Government)
Full list of benefits that count towards SMI discount eligibility (Money Saving Expert)
Social Security Scotland SMI definition
Guidance notes for doctors diagnosing SMI
Local Government Finance Act 1992
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