MILLIONS of households will see their council tax bill rise in April in a fresh blow to their finances.
Families across the country should brace themselves as local authorities prepare to hike rates, with many planning to push bills to the absolute limit.
Local authorities currently hold the power to raise council tax by up to 4.99% per cent each year without asking residents for permission.
This figure is made up of a standard 2.99% permitted increase plus an extra 2% ring-fenced specifically to help pay for spiralling social care costs.
While council tax bills vary wildly depending on where you live, the postcode lottery means some households are already forking out nearly £400 more than others for the same band of property.
For example, residents in Rutland currently face the highest council tax in the UK, where those living in a standard band D property are already paying £2,671 this year.
Between January and February, local authorities submit draft budget consultations which set out exactly how much the council wants to raise its rates from April, before these figures are finalised in March.
So far, six councils have submitted draft budget proposals, and every single one of them has proposed the maximum 4.99% rise.
Band D Households in Harrow could see their bills jump from £2,395.86 to £2,515.65, which is a increase of £119.79.
Similarly, residents in Central Bedfordshire are looking at a rise of £119.71, taking their total bill to £2,513.85.
In Bath and North East Somerset, band D bills are set to rise by £113.29 to a new total of £2,379.09.
Families in Brent are facing a hike of £106.66, pushing their bill to £2,239.81, while those in Trafford could see an increase of £106.13, bringing their total to £2,228.67.
Finally, residents in Hillingdon are looking at a £97.62 rise, which would take their annual band D charge to £2,050.
Most councils are expected to opt for this 4.99 per cent rise as it takes the headache out of calling a referendum or begging the government for special approval.
However, Labour has granted some councils in and around London the special power to make even larger council tax hikes without the need for a public vote.
Super-hike shock for six areas
Labour will allow six councils in and around London to raise council tax bills by more than 4.99% in April.
Government officials state that these six areas have been given this “additional flexibility” to raise rates in both 2026 and 2027 because their historical tax rates are considered very low.
The areas facing these potential super-hikes are Kensington and Chelsea, Westminster, Wandsworth, Hammersmith and Fulham, the City of London, and Windsor and Maidenhead.
Official figures show that households in these boroughs currently pay a Band D rate that is between £450 and £1,280 less than the average in England.
These councils have not yet confirmed what percentage rise they will put out to consultation, but we have already crunched the numbers to show how every option on the table could send your bill soaring.
Residents in Windsor and Maidenhead could face the steepest potential cash increase.
A current Band D bill of £1,823.50 could rocket by £182.35 if the council opts for a full 10% rise, taking the total bill to over £2,005.
In Hammersmith and Fulham, a 10% hike would see bills jump by £145.14, pushing the total to nearly £1,597.
Kensington and Chelsea residents could see their payments swell by £159.16, landing them with a bill of roughly £1,750.
Even in areas with historically lower rates, the percentage rise will sting.
Households in the City of London could pay an extra £127.41, while those in Westminster might see bills rise by just over £101.
Wandsworth, known for its low council tax, could see a Band D bill increase by almost £100, taking it past the £1,097 mark.
How are council tax bills calculated?
Understanding how these figures are reached is vital for every homeowner and renter.
In England, local authorities are generally permitted to increase council tax by up to 4.99% each April without holding a referendum.
This total figure is broken down into a 2.99% increase for general spending and a dedicated 2% precept strictly for adult social care.
Any increase proposed above this strict 4.99% limit typically requires a local referendum to gain public approval.
However, depending on your location, it is highly likely you will end up paying even more than the figures outlined in our table above because these estimates do not account for additional local charges.
For example, if you live in London, you are required to pay the Greater London Authority (GLA) precept on top of your borough’s charge.
In areas governed by “two-tier authorities,” where responsibilities are divided between two different councils, your council tax bill is split into two separate charges.
One charge is set by your county council, and another is determined by your district, borough, or city council.
The proportion of your bill allocated to each council varies depending on the authority, though county councils typically claim the largest share of the pot.
District councils are permitted to increase their portion of the charge by up to 3% annually without the need for a referendum, but these specific charges have been excluded from our dataset to keep the comparison clear.
In addition to the above charges, your final council tax bill also includes contributions towards local police and crime commissioners, fire and rescue services, as well as any applicable town or parish council charges.
Most councils typically finalise their council tax increases by early March, with the new rates coming into effect immediately from April 1.
What council tax support is available?
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 https://www.gov.uk/apply-council-tax-reduction.
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 in a property, or if there is one adult and one person classed as severely mentally impaired in the home.
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 could get a 100% discount.
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.
Whether you are eligible will vary 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.
