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Who sets council tax rates?Ĭouncil tax rates are set by more than 9,000 local authorities across the country. These services are also funded by central government. Money earned through council tax goes towards local services such as the police, fire services, support for the elderly and vulnerable, parks maintenance, refuse disposal and street cleaning.Įach council is responsible for allotting the funds as it sees fit.Ĭouncil tax pays for 25% of local government spending. You can find out more about how billing works, and what happens if you can't pay, in our guide to paying council tax How is council tax spent? You’ll be sent a bill in April each year, with the option to pay off the amount in full, or broken up in instalments. We explain how exemptions and reductions work in our guide on reducing your council tax bill. You may also qualify for a 25% or 50% discount on the bill, depending on who lives in the property.
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Some properties are exempt from council tax, as are some groups of people. Paying the bill is normally the responsibility of the person living in the property, either the owner-occupiers or tenants in privately rented or council accommodation. This is great if you want to see the rates where you live, check the rates in an area you're looking to move to, or just want to compare how charges vary between local authorities - and they can vary a lot. Our calculator can help you see how much local authorities are charging for each council tax band - to use it, simply enter the postcode of the area you want to check. You can find out more in our dedicated news story, plus our tips from across Which? on how to ease the squeeze during the cost of living crisis. In Wales, £150 will be paid immediately to those in council tax bands A to D, and those who are part of the council tax reduction scheme.
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In Scotland, £150 will go to those who are part of the council tax reduction scheme, plus anyone in Scottish council tax bands A to D. Those who don't qualify may benefit from the £144m discretionary fund for local authorities to give to vulnerable residents and those with low incomes. In England, those living in council tax bands A to D will receive a £150 council tax rebate, which will not need to be repaid. In April 2022, thousands of households are set to receive council tax rebates to offset the rising costs of energy.
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