Do you live by yourself? Did you know that if you do, you'll be entitled to a council tax single person discount? That means you'll pay less council tax than those living in couples of families. Seems like a good deal to us, saving you some money. Ideal when money is tight and you need to find ways to make your money go further. But how do you claim it? What exactly is council tax for and what other discounts can you get for living by yourself? Let's take a good look and save you some cash!
What is council tax and why do we pay it?
Council tax is an annual charge that we usually pay over 10 months. You can pay it over 12 months however as standard most councils work out 10 payments and give you February and March as months where you don't pay. It is a tax on a domestic property, collected by the local council. This payment covers a variety of charges and goes to lots of different areas. It not only includes household rubbish and recycling collections (some councils charge extra for garden waste) but it also includes policing, fire services, parks, education and street lighting.
It varies from council to council and in Scotland, for example it includes water and sewerage rates. Council tax can be quite a charge, with the average price paid for a band D property in the UK being £1,818. With this in mind, if you live by yourself, claiming the council tax single person discount will save you a fair bit of cash!
How do you get the council tax single person discount?
The council tax single person discount will give you a 25% reduction in the amount that you pay. Using the average figure mentioned above, you'll save over £450, paying £1363.5. That's more than £45 saved with each of your 10monthly instalments. That can go towards something else you need to pay for, other bills or into your savings account. You can check via the Government website if you are eligible for the reduction. It will redirect you to your local authority so you can connect them and put your claim in. It's also important to know that your claim can be backdated, saving you even more if you don't claim right away. It can only be backdated by six months though, so if you do live alone, get your claim in!
What other single person discounts can you get?
It's worth checking your council tax band is correct so you are only paying what you should be. There are many ways to check this and plenty of websites which will show you how to. If you're in the wrong band, you can potential claim thousands back as the rebate will go back years. It's worth checking if your water company has a single occupancy discount as some do. If not, it might be worth switching from an annual payment to a water metre.
This means you'll only pay for the water you use, rather than the approximated amount the company think you use based on your house. If you live in a 3 bed house by yourself, you'll be paying more than you need to be. It's worth noting though that once you switch to a water metre, you cannot switch back. Whilst there are no other actual reductions like the council tax single person discount, there are lots of ways you can cut the cost of living alone.
Other ways to cut the cost of living alone.
There are many ways to cut the cost of living alone.
Heating & Home
Firstly, be sure to check what rooms are you heating. There is no point in pumping heat into a room you barely use so turn the radiators down in any spare bedrooms. If you do have spare bedrooms, why don't you rent out one of those rooms and get a lodger? This would help pay your monthly bills and mortgage payments. Of course, you wouldn't get the council tax single person discount so you'd have to see if it was worth doing.
Rent Out Your Space
Something you could rent out which wouldn't affect your council tax reduction is your drive. If you have space on your drive and live near places where people need to park, hospitals for example, you could rent out your driveway.
Lower Your Car Insurance
If you do have your own car, you can often save money on your premiums by adding a second driver. You must only add them as a named driver, not the named driver as this is breaking the law. However, adding a second driver can make insurance companies think that you'll be less likely to make a claim if the driving is shared with a low risk driver. This could lower the amount you pay.
Your Food Bill
How often do you go to the shops and by food? Maybe you figure that it's not worth cooking for just one person and order more takeaways than you care to admit to? I this is the case, why not make use of your freezer and batch cook too? If you love pizzas, find a frozen one that you like and then buy them on offer. Each one is likely only 10% of the cost of a takeaway version! You can also batch cook some of your favourite meals like cottage pie, sausage casserole and fish pie. Pop them in the freezer and you'll have them whenever you need them. Quicker, cheaper and healthier than a takeaway!
Streaming Services
If you sit at home on an evening and enjoy Netflix, check what you're getting for your monthly payment. If you're paying for one of the higher packages you will be getting access to more than one screen at the same time. But if you live alone, you'll only be watching one. Is it possible to share an account, and hence the price of an account, with a friend? That would halve the amount you pay whilst still having access to top shows like Cobra Kai.
Benefits
Double check what benefits you are entitled to. You might have had a change in circumstances recently and be able to claim extra benefits. Get what you are entitled to. You've paid your taxes, you're entitled to help!
Get Your Claim In
If you live alone, be sure to get your claim in for the council tax single person discount as soon as possible. That way, you might get a rebate and will pay less in those monthly instalments from here on in.