Council Tax and Dementia: The Severe Mental Impairment Discount in Hertfordshire

This is one of the most useful reductions families miss, and it is missed because its name gives nothing away. If someone in the household has a condition that is medically recognised as a severe mental impairment, which for older people usually means dementia, they can be left out of the council tax count altogether.

Depending on who else lives in the home, that can cut the bill by a quarter, by a half, or remove it entirely. It is not means tested and it is not a charity payment. It is a discount written into council tax law, and it can often be backdated to when the person first qualified. Here is how it works and how to claim it in Hertfordshire.

What the discount actually does

Council tax assumes at least two adults live in a home. Some people, though, are not counted when the council works out how many adults are there, which the rules call being disregarded. A person who is severely mentally impaired is one of those disregarded groups, in the same way as a live-in carer or a full-time student. Being disregarded is what unlocks the reduction:

• If the person is the only adult in the home, the property can be exempt from council tax altogether.
• If they live with one other adult who does count, the bill is usually cut by 25 per cent.
• If everyone else in the home is also disregarded, it is cut by 50 per cent.

The most common Hertfordshire case is an older person with dementia living alone, or living with a spouse who is their carer. In the first case the home can pay no council tax; in the second, a 25 per cent reduction usually applies. Neither happens automatically. You have to apply, and many families only discover the discount years after they could have claimed it.

The two conditions

To qualify for the severe mental impairment disregard, two things both have to be true.

First, a doctor, usually the person's GP, has to certify that they have a severe impairment of intelligence and social functioning that appears to be permanent. Dementia, whether Alzheimer's disease or vascular dementia, is the condition this most often covers, and a stroke, Parkinson's disease and severe learning disability can also qualify. Your council provides a short certificate for the GP to complete; some surgeries make a small charge for it, and it is worth asking when you request it.

Second, the person has to be entitled to one of a list of qualifying benefits. For older people in Hertfordshire this is almost always Attendance Allowance, which is why the two so often go together. Personal Independence Payment, Disability Living Allowance at the middle or higher care rate, and Pension Age Disability Payment also count, among others. This is the practical link worth knowing: if the person does not yet claim Attendance Allowance, sorting that out can open both the benefit and this council tax discount at the same time. Our guide on who qualifies for Attendance Allowance explains that first step. Because the qualifying benefit is one of the two conditions, it is worth confirming the exact list with your own council before you assume someone does not qualify.

How to apply in Hertfordshire

Here is the point that trips people up. Council tax in Hertfordshire is not run by the county council. It is run by the ten district and borough councils: Dacorum, St Albans City and District, Watford, Three Rivers, Hertsmere, Welwyn Hatfield, Broxbourne, East Hertfordshire, North Hertfordshire and Stevenage. You apply to the council that sends the council tax bill, not to Hertfordshire County Council. The general rules are set out on GOV.UK.

The steps are straightforward. Contact the district or borough council that issues the bill, or find its severe mental impairment or council tax discount form on its website. Ask for the medical certificate, and take it to the person's GP to complete. Then send the completed certificate back with proof of the qualifying benefit, such as the Attendance Allowance award letter.

Once it is granted, the discount continues for as long as the person qualifies. Crucially, it can often be backdated, sometimes by several years, to the date they first met both conditions, so it is always worth asking the council how far back they will apply it. That backdated amount can be substantial.

Where this fits with everything else

The severe mental impairment discount rarely comes up on its own. It usually surfaces at the same time as an Attendance Allowance claim, a lasting power of attorney and the wider question of how care at home is going to be arranged and paid for. Treating them as one piece of work, rather than a series of separate errands, is what saves families time and money. After a diagnosis in particular there is a short list of things worth doing early, and this discount belongs on it, alongside the practical steps in our guide to caring for someone with dementia at home.

If you are working out how care at home fits alongside the benefits and reductions someone is entitled to, it often helps to talk it through with someone who arranges care in Hertfordshire every day, so the practical support and the paperwork are planned together rather than one at a time.

Frequently asked questions

Does a dementia diagnosis automatically reduce council tax?

No. The reduction is not automatic. A GP has to certify the severe mental impairment, the person has to be entitled to a qualifying benefit such as Attendance Allowance, and you have to apply to the district or borough council that issues the bill.

How much is the severe mental impairment discount worth?

It depends on who else lives in the home. A person who lives alone and qualifies can be exempt from council tax entirely. Living with one other adult usually means a 25 per cent reduction, and if everyone in the home is disregarded it is 50 per cent.

Can the discount be backdated?

It often can, sometimes by several years, to when the person first met both conditions. Ask the council how far back they will apply it, as the backdated sum can be significant.

Who do I apply to in Hertfordshire?

Your district or borough council, the one that sends the council tax bill, not the county council. That is Dacorum, St Albans City and District, Watford, Three Rivers, Hertsmere, Welwyn Hatfield, Broxbourne, East Hertfordshire, North Hertfordshire or Stevenage.

Does the person need to have Attendance Allowance already?

They need to be entitled to a qualifying benefit, and for older people that is usually Attendance Allowance. If it is not yet in place, claiming it is often the step that unlocks both the benefit and this council tax discount.