Council tax increases of up to 91% are imposed on households; how much more will you pay this year?

After the government permitted a number of local authorities to circumvent the cap, some households will experience an increase in council taxes of nearly 10% this year

We expose how the councils are slapping on the additional expenses.

As part of their efforts to stay out of bankruptcy, six local authorities in England have been given special permission to avoid the 4point 99 percent council tax cap this year. The bill for a Band D resident will increase by about 170 percent due to one council (Bradford) raising bills by up to 9.99 percent. Every year on April 1st, the council tax is raised.

In order to keep local governments from "falling further into financial distress," council tax increases were necessary, according to Angela Rayner, the deputy prime minister and secretary of state for local government.

Rayner claimed that the government had only granted a "limited number of requests" despite a record number of councils requesting authorization to raise bills above the 4.99 percent threshold this year. She went on to say that the government had not always given the entire sum.

Given that council tax bills have increased significantly in recent years, it is unlikely to provide much solace to struggling households.

According to a study conducted at the beginning of this decade by the Resolution Foundation, an independent think tank, the poorest fifth of households were paying 40.8 percent of their gross household income in council taxes. From 2 to 9 percent in the early 2000s, that represents an increase.

The economist at the think-tank, Lalitha Try, stated that "poor families' household budgets are being eroded by council tax, as they spend nearly as much on these bills as they pay in income tax." She went on to say, "This horribly designed tax is starting to look a lot like the very thing it was intended to replacethe hated poll tax."

In accordance with the April price cap, energy bills are also expected to increase by an average of £111 annually this April. The average increase in water bills will be 123.

Which councils are seeing the biggest increases in bills?

These are the local government agencies that are raising bills above the cap.

Taxpayers in other local authority areas may see an increase in their bills of up to 4 percent in 2025 - 2026 if their council is responsible for social care. Bradford: 9 percent; Newham: 8 percent; Windsor and Maidenhead: 8 percent; Birmingham: 7 percent; Somerset: 7 percent; Trafford: 7 percent. Bills can be increased by up to 2 percent in areas that do not have social care responsibilities.

Unless the government gives special permission, raising council tax bills by more than these amounts would typically result in a local referendum.

The average English Band D property paid 2,171 in council tax in 2024 - 2025. The average household might have to pay £2,279 annually starting in April, a 108 percent increase, if this were to increase by 4 points 99 percent.

All other bands are determined as a percentage of Band D, which is the standard measure of council tax. The amount that you pay may vary based on the band that your house belongs to and the amount of council tax that your local government levies.

On the website of your local government, you can find more information, including specifics about any increases in council taxes.

How can I reduce the amount I pay in council taxes?

Examining your council tax band could help you save a significant amount of money. You may be eligible for a sizable refund if your council tax is lowered because you are not in the correct bracket.

Depending on their unique situation, some people may also qualify for a discount or reduction in their council tax bill. For instance, a 25% discount is available to single people. Discounts are also available for those with specific disabilities. In a similar vein, families with all full-time students are exempt from paying any council tax.

You may also be eligible for a council tax reduction if you or your partner have a low income. Each council has different requirements.

Ultimately, visiting the website of your local council is the best way to determine what you qualify for. It is worthwhile to contact the council directly if you are unable to locate the information you require there.

Lastly, it is important to note that some of the regulations have evolved in the last few years. Second homes, for instance, were previously exempt from council tax bills; however, laws that went into effect in early 2024 allow local governments to charge a council tax premium of up to 100% on second homes. The new regulations are a part of an effort to expand the stock of housing available.