How to claim the ‘severely mentally impaired’ council tax discount
Who’s eligible and what you need to know
In England, Scotland, and Wales, there are potentially hundreds of thousands of individuals classified as ‘severely mentally impaired’ who might be overlooking a significant council tax discount. This discount could amount to hundreds of pounds, and in some cases, even lead to backdated payments totaling thousands. We’ve been highlighting the availability of this discount for years, and numerous people have successfully benefited from it. Check if you might be eligible as well.
What is the ‘severely mentally impaired’ council tax discount?
The ‘Severely Mentally Impaired’ (SMI) council tax discount offers a reduction on a household’s council tax bill, ranging from at least 25% to potentially eliminating the entire amount in some cases.
The term ‘Severely Mentally Impaired’ is rather harsh, so for the sake of this guide, we’ll use SMI.
SMI is a medical diagnosis in its own right, but the underlying issues might include conditions like dementia (including Alzheimer’s), severe learning disabilities, multiple sclerosis, the aftermath of a severe stroke, or other similar conditions.
The discount size depends on who you live with
Council tax is discounted based on how many qualifying adults live in a house. Having SMI means you don’t count towards this (like full-time students & under-18s), so…
– SMI living alone: house gets 100% council tax discount (ie, you pay nowt)
– 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
To clarify, the presence of individuals under 18, full-time students, or others with Severe Mental Impairment (SMI) in the household does not alter the aforementioned situation. These individuals are not considered in the council tax calculation, meaning a residence where someone with SMI resides alongside a minor is still eligible for the 100% discount. For more detailed information, refer to our comprehensive guide on Council Tax discounts.
Who can get the SMI council tax discount?
There are two criteria that must be met by someone who’s severely mentally impaired in order to qualify for this council tax discount:
- They’ve been medically certified as being ‘severely mentally impaired’. For example, this may be the case if they have dementia (including Alzheimer’s), Parkinson’s, severe learning difficulties, multiple sclerosis, complications from cerebral palsy or have had a stroke.It will depend on each person’s individual case though and simply having been diagnosed with one of these conditions doesn’t automatically mean they qualify for the discount – a doctor must also certify they are ‘severely mentally impaired’.
GPs are not allowed to charge you for this certification.
- They’re receiving at least one of the following benefits (in Scotland, being eligible for but not actually receiving the benefit can be enough):
- 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)
- Universal credit (including an element for limited capability for work or limited capability for work and work-related activity)
In Scotland you can also be eligible for / receiving:
- Tax credits (including disability element)
- Employment and support allowance
- Universal credit
Important. It used to be the case England and Wales that the person only had to be eligible for – but not necessarily actually receiving – the qualifying benefit, but this changed following a High Court ruling.
The law is less clear cut in Scotland, and so with some Scottish councils it’s fine if you’re just eligible for the qualifying benefit, while with others you’ll need to actually be receiving the benefit. Sadly it’s a bit of a postcode lottery.
What if I’m on the ‘severe mental illness’ (SMI) register?
The abbreviation SMI can be a bit confusing, as it refers to two distinct concepts: the ‘SMI register’ (severe mental illness register) and the ‘severely mentally impaired’ (SMI) status for council tax purposes. These two are not the same.
If you have a severe mental health condition such as schizophrenia, bipolar disorder, or another form of psychosis, you may be listed on your GP’s severe mental illness register. This register includes individuals with serious psychological conditions.
However, being on this severe mental illness register does not automatically qualify you for a ‘severely mentally impaired’ (SMI) council tax discount. The criteria for the SMI council tax discount are different and typically apply to individuals with conditions like dementia, Alzheimer’s, Parkinson’s disease, severe learning difficulties, multiple sclerosis, complications from cerebral palsy, and strokes.
It’s possible to have conditions that qualify under both categories. To understand who is eligible for the SMI council tax discount, you should look into the specific eligibility criteria.
How to claim the discount
The procedure for filing a claim can differ based on your location, so it’s important to consult the guidelines provided by your local authority.
Here’s a general overview for England and Scotland. For information on Wales and a comparable discount in Northern Ireland, see the sections below.
Applying for the discount in England and Scotland
- Get a claim form from your council. You’ll need to contact your local authority for a claim form to register for a council tax discount (find contact details via the Government’s ‘Apply for Council Tax Reduction‘ service).
- Get a doctor’s diagnosis. A licensed medical professional must diagnose you (or the individual for whom you are applying) as ‘severely mentally impaired.’ Sometimes, a written diagnosis is required to accompany your application. In other instances, providing your doctor’s contact information suffices, and they will be contacted for verification.Once your claim is approved, the discount will typically be applied automatically each year, so you won’t need to ‘reapply.’ However, you should inform your council if you believe you no longer meet the eligibility criteria for the discount.
Can I backdate the claim?
It’s always worth asking when you submit your claim, and while some councils do backdate, they are not legally obliged to – each council can decide their own policy. For example…
- Some councils backdated the discount by six years.
- Some backdate to the point that the individual was receiving a certain benefit.
- But we’ve also heard some councils don’t backdate at all.
As we say, do ask… as we’ve even heard of some councils only giving a backdated payout when asked.
Applying for the discount in Wales
Following the release of our 2017 report, “The Disregarded Discount,” which proposed numerous improvements to the procedures for obtaining discounts and rebates, the Welsh Government along with all 22 Welsh local authorities committed to implementing every recommended change.
As a result, the application form for the discount is now uniform throughout the country, and every council allows backdating in a consistent manner. Well done, Wales!
The Welsh Government has a dedicated webpage, with details of the discount and how to claim, and a leaflet of the information (which also helps council call-handlers).
If you’re in Wales and want to claim a discount, you need to:
- Print the application form from the Welsh Government website.
- Get a diagnosis (or get a diagnosis for the resident you wish to claim for). To be eligible, the person claiming the discount must be diagnosed as SMI by a doctor. There’s a section for your doctor to fill in on the form.
- Send it to your council’s tax office. You can find details for your council here.
The form will ask for a date of diagnosis, so if you’re owed a backdated rebate, your application form will cover this.
There’s only a roughly equivalent discount in Northern Ireland
In Northern Ireland, properties are valued individually due to the rates system, as opposed to council tax.
The closest equivalent to the SMI discount in Northern Ireland is the disabled person’s allowance. This allowance offers a 25% reduction in rates for homes that are adapted to accommodate a disabled resident. See full info on the NIdirect website.
Rejected for an SMI discount? You can appeal
If your council has denied your application for the SMI discount and you think the decision was incorrect and that you qualify, there is an appeals process available.
Pay close attention to any important deadlines before you file an appeal. If you miss these deadlines, you might need to restart the entire SMI application process.
Additionally, if your SMI discount has been approved but you are dissatisfied with the extent to which the council is willing to backdate your claim, you can appeal this decision as well (as long as you have a valid reason for the dispute).
The appeals process differs depending on where you live. England’s below, or jump down for Wales and Scotland…
Making an appeal if you live in England
If the council denies your SMI application and you believe the decision is incorrect, your initial step should be to appeal directly to the council. The council is then required to provide a final response within two months.
- If the council persists in its disagreement, you have the option to present your case to the Valuation Tribunal Service. This step must be taken within two months following the council’s final decision.
- If the council fails to address your initial appeal within two months, you are entitled to escalate your case to the Valuation Tribunal Service. It is important to note that this escalation must occur within four months of submitting the initial appeal.
You can take your case to the Valuation Tribunal Service by filling in this online form.
Making an appeal if you live in Wales
A council is given a two-month period to reply to your application for SMI. In the event your application is denied, the council must provide a written explanation detailing the reasons for the rejection and include a form that allows you to file an appeal.
- To appeal, you’ll need to fill in the form and send it to the Valuation Tribunal for Wales (this must be done within two months of the council’s decision).
- If your council doesn’t include an appeal form, you can download it from the Valuation Tribunal for Wales. Alternatively you can call 01633 255003 or email correspondence@valuationtribunal.wales asking for a copy. Writing a letter directly to the tribunal should also TECHNICALLY be enough to start the appeals process, but it’s recommended you use the appeal form.
If the council does not reply to your initial SMI application within two months, you can directly take your case to the Valuation Tribunal for Wales. However, this must be done within four months from the date you applied for SMI.
Making an appeal if you live in Scotland
If your application for SMI is denied by the council and you believe the decision is incorrect, you should file an appeal directly with the council. The council will then forward your appeal to the local Valuation Appeal Committee if either of the following conditions are met:
- Your council has replied to your appeal within two months without resolving the dispute.
- The council has not replied within two months and you have sent another final written communication to your council in which you say you’d like to appeal to your local Valuation Appeal Committee, and this written communication is sent within four months of sending your first appeal.
When the council refers your case, your local Valuation Appeal Committee will get in touch directly with you.
Can I complain about how the council has handled my application?
If you are dissatisfied with how your council managed your SMI discount application, you have the right to lodge a complaint regarding their conduct. Here, ‘managed’ refers not to the decision about your eligibility for the discount, but rather to issues like delays in the process, inaccurate or misleading guidance, or unprofessional behavior from staff.
You should begin by filing a complaint through your council’s official complaints service, which can be accessed on their website.
If the council’s response is unsatisfactory, you can escalate your complaint to the relevant ombudsman based on your location:
If you’re living in England
If you find that the council’s response to your complaint is unsatisfactory, or if you haven’t received a reply within 12 weeks, you have the option to take your case to the Local Government and Social Care Ombudsman for further review.
This can be done by filling in an online form (you’ll need to register with the ombudsman first) or by calling 0300 061 0614. You should ensure that any complaint to the ombudsman is made within a year of your initial complaint to the council.
If you’re living in Wales
If you’re not satisfied with the council’s response to your complaint, or have not received a reply within 12 weeks, you can refer your case to the Public Services Ombudsman for Wales, by filling in this online form or by sending a printable version in the post.
The address to send the printable version to is:
Public Services Ombudsman for Wales, 1 Ffordd yr Hen Gae, Pencoed, CF35 5LJ.
If you’re living in Scotland
If you’re not satisfied with the council’s response and have exhausted its internal complaints process (which is a two-stage process), you can refer your complaint to the Scottish Public Services Ombudsman via an online form.
Make sure your council has confirmed in writing that you have completed its complaints process, otherwise you will not be able to escalate your case to the ombudsman.
SMI discount FAQs
Q – I have been diagnosed with dementia – does this make me eligible for the SMI discount?
A – No, having a medical condition alone does not automatically qualify you for the discount. To qualify, you must have a specific diagnosis of Severe Mental Impairment (SMI) from your healthcare provider.
According to the law, a person is classified as SMI if they exhibit “a severe impairment of intelligence and social functioning (regardless of the cause) which seems to be permanent.”
SMI can be diagnosed due to various conditions, such as dementia, schizophrenia, multiple sclerosis, the aftermath of a stroke, or injuries from an accident that permanently impair your cognitive and social abilities.
While numerous conditions may lead to an SMI diagnosis, no single condition guarantees an SMI classification. The determination of SMI is based on a specific medical diagnosis from a doctor.
Q – Do I need to live alone to get the SMI discount?
A – No, but the amount of council tax reduction you can receive is influenced by the number of other adults in your household who pay council tax.
If you have been officially diagnosed with a severe mental illness (SMI) by a doctor and qualify for one of the relevant benefits for a discount, and you either live alone or with others who are also SMI, you will be fully exempt from council tax – meaning you won’t owe anything.
On the other hand, if you have an SMI diagnosis and are eligible for the relevant benefits, but you share your home with just one adult who pays council tax, your household will benefit from a 25% reduction. This is because your exemption means that the other adult qualifies for the single person’s discount.
However, if you have been diagnosed with SMI and meet the criteria for the benefits, but live with two or more adults who are liable for council tax, no reduction will apply. This is because with multiple adults responsible for paying council tax, they do not qualify for the single person’s discount.
Q – Can my GP charge me for a doctor’s certificate proving I am SMI?
A – No, your GP is not permitted to charge for a doctor’s certificate needed for an SMI claim – regulations from the British Medical Association mandate that these certificates must be provided at no cost.
Although there is no equivalent regulation for specialist consultants, such as psychiatrists, they typically do not request a fee for these documents.
Q – Can I backdate my claim to when I was diagnosed as becoming SMI?
A – Not necessarily. While some councils do backdate, they are not legally obliged to – each council can decide their own policy.
For example:
- We’ve heard some councils do not backdate at all;
- We’ve heard from several users that their council backdated the discount by six years;
- We’ve also heard that many councils backdate to the point that the individual was receiving a certain benefit, such as attendance allowance.
All the above approaches are legally permitted, as there is nothing in law which says a council has to have a particular backdating policy.
After a concerted campaign, Wales has implemented a uniform approach to backdating the Severe Mental Illness (SMI) discount. Now, all 22 local authorities in Wales apply this discount from the date you were diagnosed with SMI, which might be before the official diagnosis is recorded. MSE is advocating for similar changes across the rest of the UK and is actively campaigning for this backdating practice to be adopted nationwide.
Q – I’ve been told I can only get the SMI discount if I’ve had adaptations to my home – is this true?
A – No. If your council has informed you that you are eligible for the SMI discount only if you’ve made adaptations to your home or require a wheelchair indoors, they may have mixed it up with the Disabled Band Reduction Scheme. This is a separate discount designed for those who need additional space due to a disability.
Q – I’ve been told I can’t get the SMI discount because I have savings – is this true?
A – No, that’s not correct. If your local council has informed you that you’re only eligible for the SMI discount if your savings fall below a specific threshold—some councils have mentioned a limit of £16,000—they might be confusing it with the Council Tax Reduction Scheme (also known as Council Tax Support). This scheme is designed to assist pensioners with a low income or those receiving certain benefits in covering their council tax.
Q – The council call handler told me I’m not SMI – what can I do?
A – A council call handler isn’t able to diagnose you as SMI or not – only a registered medical practitioner can diagnose someone as SMI.
You should direct your council to the Local Government and Finance Act 1992 (Schedule 1, Paragraph 2) which explains that only a registered medical practitioner can certify someone as SMI.
Q – Can I claim for someone who is now dead?
A – Under current legislation, each council has the discretion to set its own policy regarding backdating. If you previously resided with someone who had serious mental illness and has since passed away, or if you are the executor of their estate, you might be eligible to request a rebate for any overpaid council tax. However, the availability of this rebate will be contingent upon the specific policy of your local authority.
Q – I believe I’m SMI, but my doctor won’t sign my form – what can I do?
A – When pursuing an SMI (Serious Mental Illness) diagnosis, it’s crucial to provide your doctor with the most precise and comprehensive information to ensure they can make an informed decision about your condition.
If you believe that your doctor has unjustly denied you an SMI diagnosis, organizations like Alzheimer’s UK and Rethinking Mental Health suggest several steps you can take.
One option is to seek a diagnosis from another healthcare professional you regularly see, such as a consultant or psychiatrist, rather than your GP.
Alternatively, you can request your GP to arrange a second opinion from either a different specialist or another GP. While it’s a reasonable request, your GP is not obligated to comply if they believe it is unnecessary. If your GP refuses and you still believe you meet the criteria for a diagnosis, you might consider finding a new GP.
Q – Can I claim for a previous address in another local authority?
A – Yes, Depending on the policy of the local authority to which you are applying, you might still be eligible to claim benefits for an earlier address. If the local authority allows for backdating from the time of your initial SMI diagnosis, you could receive a refund for the period spent at your previous address. Keep in mind, however, that backdating policies can vary between different local authorities.
Q – My council says the discount can only be backdated to when I was receiving a certain benefit – is that right?
A – The approach to backdating can vary based on the policies of individual local authorities, as each council sets its own guidelines. While not all councils may accommodate backdating requests, it’s beneficial to collect the necessary documentation and inquire with your local authority.
According to Alzheimer’s UK, it’s recommended for claimants to include a covering letter with their discount applications to formally request that the discount be applied retroactively.