MILLIONS of households across the UK are bracing for council tax hikes this April, with some bills set to rise by as much as 10%.
But here’s the surprising part – many people won’t see their bills increase by as much as they fear.
While some areas may see slightly smaller increases, others could face steeper rises once extra charges are taken into account[/caption]
In fact, if you live in certain areas, your council tax might go up by less than 5%, even though your local authority is applying the maximum allowed increase.
Confused? Don’t worry – we’re breaking it down for you so you can understand what’s really going on with your council tax.
Why do council tax rises vary?
When councils talk about increasing council tax, they often focus on the headline rate – the percentage they’re raising their share of the bill.
However, your council tax bill isn’t just one charge from your local authority.
It’s actually made up of several parts, including contributions to services like the police, fire brigade, and sometimes water companies, depending on where you live.
This means that even if your local council raises its share of the tax by, say, 5%, your total bill might go up by a different amount once all the other charges are taken into account.
For example, if you live in an area with a ‘two-tier authority’ system – where responsibilities are split between county and district councils – you’ll be charged separately by both councils, as well as by other bodies like the police and fire services.
Rules around council tax bill hikes
IN England, county councils can raise their portion of council tax by up to 4.99% each year without needing a public referendum.
This is typically split into a 2.99% increase for general spending and an additional 2% for adult social care.
Your district, borough, or city council is also permitted to increase its charge by up to 2.99% annually without requiring a referendum, and the majority of councils are opting to implement this rise this year.
Police and crime commissioners are permitted to increase their charges by up to £14 per year without requiring a referendum, while fire and rescue services can raise their charges by up to £5 annually.
This layered structure means the total increase in your bill may differ from the headline percentage announced by your council.
What does this mean?
Let’s take Hampshire as an example.
Hampshire County Council is raising its council tax charge for a typical Band D property by the maximum 5%, increasing from £1,533 in 2024 to £1,610 in 2025.
But if you live in the New Forest District Council area within Hampshire, your total bill also includes charges from the district council, the local police, and fire services.
When all these are added together, the total bill for 2024 was £2,193. In April 2025, it will rise to £2,298 – a 4.79% increase overall.
That means a household’s total bill is actually rising by less than the 5% headline increase announced by the county council.
However, this trend doesn’t apply to everyone.
For instance, Lincolnshire County Council is increasing its annual charge by just 2.99%, which is the lowest confirmed rise so far.
Despite this relatively modest increase, the total rise in a household’s council tax bill in this area will actually exceed this headline rate.
Take someone living in the City of Lincoln within Lincolnshire as an example.
Again, their total bill includes charges from the county council, district council, police, and fire services.
For the 2024 financial year, their total council tax bill is set at £2,191.
But, in April 2025, this will rise to £2,261, which is an overall increase of 3.21%, more than the 2.99% increase seen in the county council’s charge alone.
What’s happening in Scotland?
If you live in Scotland, you might notice your bills rising by more than the increases announced by your council.
This is because, unlike in other parts of the UK, Scottish council tax bills include charges for water and wastewater services.
As a result, households will not only pay the main council tax charge but also see additional costs for their water bills incorporated into the total amount.
Scottish Water has announced a 9.8% increase in unmetered water and wastewater charges this Spring, raising the typical Band D charge from £546.39 to £600.39.
At the same time, councils across Scotland have put forward council tax increases ranging from 5% to 10%.
When these water charges are combined with the council tax rise, the overall increase in your bill is likely to be higher than you might have anticipated.
For example, households in Glasgow will see their total council tax bill increase by 8.14%, rising from £2,045 a year to £2,212 a year.
This is despite Glasgow City Council only raising its portion of the bill by 7.5%.
So, while your council might announce a modest rise, the final bill you pay could be noticeably higher.
Consumer rights expert Martyn James said: “There’s a misconception that council tax bills are always capped at a maximum of 4.99% and can’t rise.
“In fact, many councils have invoked their ‘special dispensation’ rights to introduce higher price increases, often in the poorest areas.
“Others have spread payments over 12 months instead of 10 so it looks like you aren’t paying as much as you were last year, even though you are.
“If you can’t pay your bill, contact your council as soon as possible. You may be entitled to your own dispensation for a bill reduction, but don’t delay.”
All local authorities are set to finalise their council tax increases by early March, with the new rates coming into effect from April 1.
Check if you can claim a council tax refund
Over three million households are owed a combined total of £544million in council tax refunds, according to a Sun investigation last month.
The average refund due is around £178, but some could be owed as much as £3,659.
Sun Money submitted a Freedom of Information Request to all 349 local authorities in England, Scotland and Wales to find out just how much taxpayer money our councils are sitting on.
You can check to see how much cash your local authority might be sitting on by searching for your council in our tool.
It’s surprisingly easy to overpay your council tax, and millions of us do.
One of the main reasons is moving house.
Council tax is usually billed annually from April to April, but paid in instalments, which means you’re always paying some in advance.
Therefore, if you move out before the year’s end, you’ll likely be due a refund for the remaining months.
Another reason for overpayments is a change in your property’s council tax band.
If the band is lowered, you’re due a refund for the over payments made at the higher rate.
Finally, forgetting to cancel your direct debit after moving out can lead to continued payments and further overpayments.
Finding out if you’re owed a council tax refund is easier than you think.
Many councils have online claim forms available on their website. To find your local council’s site, visit here.
You can also contact them directly by phone, email, or live chat.
What council tax support is available?
By James Flanders, Chief Consumer Reporter
There are several ways you can get discounts and reductions on your council tax bill.
In some cases, you can even get the bill completely wiped with a council tax reduction.
Factors such as your household income, whether you have children, and if you receive any benefits, will influence what you get. To apply, visit here.
You’ll need your National Insurance number, bank statements, a recent payslip or letter from the Jobcentre, and a passport or driving licence when filling out the details.
Below, we reveal all the ways you can get discounts or a reduction on your bill:
Single person discount
If you live on your own, you can get 25% off your council tax bill.
This also applies if there is one adult and one student living together, or one adult and one person classed as severely mentally impaired.
If you live with someone who doesn’t have to pay council tax, such as a carer or someone who is severely mentally impaired, you could get a larger reduction too, of up to 50%.
And, if you live in an all-student household, you could get a 100% discount.
Retirees
Pensioners may also find themselves eligible for a council tax reduction.
If you receive the Guarantee Credit element of Pension Credit, you may not have to pay a penny.
If not, you could still get help if you have a low income and less than £16,000 in savings.
And a pensioner who lives alone will be entitled to a 25% discount too.
Low-income households
If you are on a low income or receiving benefits, you could be eligible for a reduction on your council tax, depending on where you live.
You could also get a deferral if you’re struggling to pay your bill, or you can speak to your council about setting up a payment plan to manage the cost.
But one thing to remember is if you are struggling you should contact your council as early as you can.
