Council tax and dementia: the severe mental impairment discount

Council tax By Council Tax Helpline, 10 September 2026

In short

Someone with dementia, a severe learning disability, or a similar condition may count as severely mentally impaired for council tax.
They need a certificate from a doctor, and must get a qualifying benefit, such as Attendance Allowance or the daily living part of PIP.
Depending on who lives there, it can mean 25% off, 50% off, or no council tax at all.
It can be backdated to when they first qualified, sometimes many years, which can clear arrears.
It is one of the most missed forms of council tax help.

What is severe mental impairment?

For council tax, someone is severely mentally impaired if they have a severe impairment of intelligence and social functioning, however caused, which appears to be permanent. It is not limited to learning disabilities. Conditions that often qualify include:

Dementia, including Alzheimer’s disease
Severe learning disabilities
The effects of a stroke or brain injury
Parkinson’s disease, and other conditions affecting the brain, where they have progressed far enough

What you need

1. A certificate from a medical professional, usually a GP or consultant, confirming that the person is severely mentally impaired. Most councils have a form for this.

2. Entitlement to a qualifying benefit, which includes:

Attendance Allowance
The daily living part of Personal Independence Payment
The middle or higher care rate of Disability Living Allowance
Employment and Support Allowance, or Incapacity Benefit
Universal Credit that includes an amount for limited capability for work, or for work and work-related activity
Severe Disablement Allowance, or Constant Attendance Allowance
Income Support that includes a disability premium

How much off?

Who lives there	Result
Only people who are severely mentally impaired	Exempt: no council tax
Severely mentally impaired people and students only	Exempt
One severely mentally impaired person and one other adult	25% off
Everyone living there is disregarded, but not exempt	50% off

For example, a couple where one has dementia and qualifies usually gets 25% off, because the person with dementia is not counted.

If they have moved into a care home

If someone has left their home to live permanently in a care home or hospital, their empty home may be exempt from council tax. See empty properties.

Backdating

This can be backdated to when the person first qualified, sometimes by many years, as long as they were entitled to a qualifying benefit for that period. Refunds of thousands of pounds are not unusual.

Behind with council tax, and someone has dementia? Raise this before you agree to anything. A backdated discount or exemption can reduce the arrears, or clear them altogether.

How to apply

Get the certificate signed by the GP or consultant. Ask your council for its form.
Gather proof of the qualifying benefit, such as an award letter.
Apply to your council, and ask for it to be backdated to when the person first qualified.
If you are in arrears, ask the council to hold recovery while it decides.

If the council refuses, ask it to reconsider, and then appeal to the Valuation Tribunal.

Other help to check

Council Tax Reduction, if the household is on a low income
The disabled band reduction, if the home has been adapted
A carer who lives with the person and provides at least 35 hours of care a week may also be disregarded. See discounts and exemptions

Changes coming in England

The government announced in April 2026 that it intends to change the name and definition of this disregard in England, and to introduce a standard application form, “when parliamentary time allows”. Until then, the rules above apply.

Where are you with your council tax?

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Takes about 3 minutes.