Thousands with really common conditions warned they could be missing out on 100% council tax reduction

Thousands of people have been warned they could be missing out on a big council tax reduction if they have certain health conditions. Council tax is expected to rise in every part of Wales this year with some councils considering double-digit hikes.

It means many of us will be worried about how to cope with the increases with other bills like broadband and insurance also set to rise. You can read how much council tax is expected to go up in each part of Wales here.

But there is a way to have your council tax reduced if you have certain medical conditions and MoneySavingExpert has explained exactly how to do that. In some cases you could even have it reduced by 100% and not have to pay anything at all. To get the latest money stories straight to your inbox twice a week sign up to our newsletter here.

READ MORE: Martin Lewis issues renewed call to those with common conditions to claim £3,500 a year support

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What is the severely mentally impaired council tax discount?

The 'severely mentally impaired' (SMI) council tax discount is a reduction in how much your household pays in council tax. SMI is a medical diagnosis in itself but it can have several underlying causes including dementia, Alzheimer's, profound learning difficulties, multiple sclerosis, a severe stroke, or something else.

How much discount you get is based on how many qualifying adults live in a house. Having SMI means you don't count towards this (like full-time students and under-18s) and the way it breaks down is as follows:

- SMI living alone: house gets 100% council tax discount (i.e. you don't pay any council tax)

- SMI living with an adult carer: home gets 50% council tax discount

- SMI living with one qualifying adult: home gets single person reduction so 25% discount

- SMI living with two or more qualifying adults: home pays full council tax so no discount

Under-18s, full-time students, or others with SMI in the house don't change the situation as they don't count towards council tax so a house where someone with an SMI lives with an under-18 still gets the 100% discount.

To qualify you have to have been medically certified as being 'severely mentally impaired'. For example this can be the case if you have dementia (including Alzheimer's), Parkinson's, severe learning difficulties, multiple sclerosis, or have had a stroke. Having one of these diagnoses is not enough though – you must also be certified as 'severely mentally impaired' by a doctor. GPs cannot charge you for this certification.

In addition to this you must be claiming at least one of the following benefits:

• 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

In England and Wales you can also be receiving disability working allowance (based on getting income support including disability premium) or universal credit (including an element for limited capability for work or limited capability for work and work-related activity.)

How do I apply for the discount?

You can apply for the reduction by downloading the application form from the Welsh Government's website. You can find the form here and you can also find a useful guide on how to apply for the discount in Wales here. There is a section for you to fill in on the form and you will need to be formally diagnosed as severely mentally impaired by your doctor.

A council has two months to respond to your application for SMI. If it rejects your application it should write to you outlining its reasons and send you a form with which you can appeal. You will need to fill in this form and send it to the Valuation Tribunal for Wales within two months of the council issuing its decision.

If you aren't sent a form you can download one from the Valuation Tribunal for Wales. Ring 01633 255003 or email correspondence@valuationtribunal.wales to ask for one. You can also write directly to the Valuation Tribunal but it is preferred to do it via the form. You can also automatically take your case to the Valuation Tribunal for Wales if the council doesn't respond within two months but you have to do this within four months of applying.