Martin Lewis tells pensioners 'tick this box' to qualify for 2,300 discount scheme

Martin Lewis has pointed pensioners towards a discount scheme that could save you over 2,300 a year. He was keen to highlight the programme as it is "massively undercommunicated".

There are a range of discounts on offer depending on your household situation. A 'best bits' compilation edition of his BBC podcast revisited some of his words of wisdom on council tax. Many people may not realise they qualify for discounts, as you can get 25 per cent or more off your bill.

Cashing in on these savings can make a big difference, with the average Band D council tax bill in England now at 2,392 a year. You could get an 100 per cent discount on this bill with nothing to pay in some cases.

A question came in for Mr Lewis from someone who lives with their dad and is a carer for him. The person receives Carer's Allowance while the dad is on Attendance Allowance. Attendance Allowance is a non-means-tested benefit available to people of state pension age if they need someone else's help to look after them.

The person wanted to know if they could get a council tax reduction given their situation. Mr Lewis said they may well qualify for some discounts.

I would think you're entitled

He said: "If there's only the two of you in the household, I would think you're entitled to at least a 25 per cent discount if your father has a severe mental impairment. Now, the fact he gets Attendance Allowance signifies to me there's quite a chance he would be due a severe mental impairment (SMI) discount."

Mr Lewis went on to explain how you prove you have an SMI, to secure the reduced bill. He said: "It is about a doctor certifying that you have a severe mental impairment that affects someone's social functioning. So if a doctor will sign that off'cause just getting Attendance Allowance doesn't mean you get SMI, you need it to be signed as an SMIwell, then you're certainly entitled to a 25 per cent discount and possibly entitled to a 50 per cent discount if you're a carer in the right circumstances."

In fact, the SMI discount can be worth up to 100 per cent in some cases. To get an SMI discount applied to your bill, you will need to contact your council and fill in their particular form.

Mr Lewis told the person that given their situation when filling in the form, they should "tick the getting a qualifying benefit" when filling in the application.

How do you qualify for a severe mental impairment (SMI) discount?

To get the discount, you will need to be certified by a doctor as having a severe mental impairment. A range of conditions can qualify, such as having dementia, including Alzheimer's, Parkinson's, severe learning difficulties or complication from cerebral palsy or a stroke.

Another second qualifying rule is you must be receiving a qualifying benefit. These include:

• Incapacity Benefit
• Attendance Allowance
• Severe Disablement Allowance
• Disability Living Allowance (higher or middle-rate care component)
• Increase in Disablement Pension (due to constant attendance being needed)
• Unemployability Supplement or allowance
• Constant Attendance Allowance
• Income Support (which includes a disability premium)
• Personal Independence Payment (standard or enhanced daily living component)
• Armed Forces Independence Payment.

How much is the severe mental impairment (SMI) discount?

You can get an 100 per cent discount on your council tax bill if either:

• You live on your own
• Any other adults in your household either qualify as severely mentally impaired or are full-time students.

You could get a 50 per cent discount on your council tax bill if:

• Everyone else in your household is classed as 'disregarded' for council tax purposes

You could get a 25 per cent discount on your council tax bill if you live with someone who has an SMI and either:

• There are no other adults in your household
• Everyone else in your home is disregarded.