Martin Lewis has helped a family secure a life-changing council tax refund of nearly £6,000, following his crucial advice on a little-known exemption.
The Life-Changing Payment
A listener named Mike recently shared an incredible outcome on The Martin Lewis Podcast. After hearing the money expert discuss council tax discounts for mental incapacity, Mike investigated for his elderly father, who has vascular dementia.
The result was transformative. Not only did Mike secure a 100% discount on his father's future council tax bills—worth over £2,000 a year—but the local council also backdated the discount for nearly five years. This led to a direct payment of £5,989.30 appearing in his father's bank account.
"Amazing, things are tight with carer costs and increasing tax bills, so this is a lifesaver thanks again," Mike wrote in his message to the podcast, which is available on BBC Sounds and Spotify.
What is the Severe Mental Impairment Discount?
Martin Lewis has long campaigned to raise awareness of what he calls the "horribly named" Severe Mental Impairment (SMI) council tax discount. It is designed for people with a severe impairment in intelligence and social functioning.
This condition is often associated with illnesses like Alzheimer's, dementia, severe Parkinson's, or the effects of a major stroke. To qualify, the person must also be eligible for specific disability benefits.
When someone qualifies for the SMI discount, they are effectively disregarded for council tax purposes. This can mean a 100% reduction on the bill, especially if they live alone or with another person who is also disregarded, such as a carer.
A Hidden Lifeline for Families
Lewis expressed that Mike's story was "quite moving" and reiterated his frustration that the discount remains "hideously underpublicised." He revealed that even some frontline council staff are unaware of how the rule works.
The financial expert highlighted that Wales has significantly improved its system for administering the discount and called for England and Scotland to follow suit. For families facing soaring care costs, this discount and potential backdated refund can provide vital financial relief.
Mike's case is a powerful reminder for others in similar situations to check their eligibility. With councils able to backdate claims, the resulting refund can be substantial, offering crucial support for managing healthcare and living expenses.
