Best Council Tax Guide for Carers Living with Someone with Dementia

If you're a carer living with someone who has dementia and you're trying to work out what council tax relief applies, start with the SMI disregard — it's almost always the highest-value relief available, and most carers don't know it exists. Whether you can also claim a Carer Disregard on top depends on one specific question: are you the person's spouse, civil partner, or partner living with them as a couple? If yes, the Carer Disregard does not apply to you, but the SMI disregard still reduces the bill. If no, both reliefs may stack.

The Carer's Council Tax Problem

You live with someone who has dementia. You provide daily care. You manage their medication, their appointments, their finances. The council tax bill arrives in full, and you know there should be some kind of discount — but the council's website lists six different reliefs and doesn't explain which ones combine or which one to apply for first.

The confusion is real, and it costs families hundreds of pounds a year.

Here's how the reliefs work for live-in carers, in order of priority.

Relief 1: The SMI Disregard (Almost Always Applies)

The Severe Mental Impairment disregard removes the person with dementia from the council tax headcount. They stop being counted as an adult resident for discount purposes.

Two conditions must be met:

1. A GP certifies that the person has "a severe impairment of intelligence and social functioning which appears to be permanent"
2. The person is entitled to a qualifying benefit — Attendance Allowance, PIP Daily Living, DLA Care (middle or highest rate), Universal Credit with LCW or LCWRA, ESA with the support or work-related activity component, or another benefit on the statutory list

A dementia diagnosis alone does not establish the medical condition: the GP must certify the statutory impairment, and the person must also be entitled to a qualifying benefit.

What it does to the bill:

• If the person with dementia is the only other adult and you're the only countable adult left: 25% single-person discount
• If the person with dementia lives alone: 100% Class U exemption (£0 bill)

At England's 2026/27 average Band D bill of £2,392, a 25% discount saves about £598 a year.

Relief 2: The Carer Disregard (Depends on Your Relationship)

The Carer Disregard removes the carer from the headcount — but only if all four conditions are met:

1. You live in the same property as the person you care for
2. You provide care for at least 35 hours a week
3. The person you care for is entitled to one of: Attendance Allowance (either rate), PIP Daily Living (either rate), DLA Care (middle or highest rate), Armed Forces Independence Payment, or a qualifying increase in Constant Attendance Allowance or Disablement Pension
4. You are not the spouse or civil partner of the person you care for, a partner living with them as a couple, or their parent if they are under 18

That fourth condition is the one most carers miss. Spouses, civil partners, and partners living together as a couple cannot claim the Carer Disregard for caring for their partner. The conditions prescribed for the Schedule 1, paragraph 9 disregard exclude them.

What it means in practice:

If you're an adult child who has moved in to care for a parent with dementia, and you're the only other adult in the property, both disregards can apply — reducing the bill by 50%.

Relief 3: Disabled Band Reduction (Can Stack on Top)

If the property has been adapted for the disabled person — a room used mainly for the person's needs, extra bathroom or kitchen, or wheelchair access — the household may qualify for a Disabled Band Reduction. This drops the property to the band below its actual band (Band D is charged at Band C rates, Band A gets a one-ninth reduction).

This stacks with the SMI disregard and the Carer Disregard. A household could get: the person with dementia disregarded, the carer disregarded, and the band reduced — all at once.

What the Free Resources Get Wrong

The most common mistake in council-published guidance and charity factsheets is failing to distinguish between the SMI disregard and the Carer Disregard. Many councils list both reliefs on the same page without explaining that one removes the person with dementia from the count and the other removes the carer — and that the Carer Disregard excludes a person's spouse, civil partner, or partner living with them as a couple.

This creates two problems:

Problem 1: Spouses assume they qualify for a Carer Disregard, apply for it, get rejected, and never learn that the SMI disregard would have given them a 25% discount through a different mechanism.

Problem 2: Other eligible carers apply only for the SMI disregard (because dementia is the more obvious condition) and miss the additional Carer Disregard that would increase their saving from 25% to 50%.

The SMI Claim and Backdating System includes a household composition flowchart that maps every common carer scenario to the correct combination of reliefs — including which forms to submit for each one.

Who This Is For

• Spouses and partners of someone with dementia who are paying full council tax and need to understand what discount they can actually get — even though the Carer Disregard doesn't apply to them
• Adult children who have moved in to care for a parent and may qualify for both the SMI disregard and the Carer Disregard
• Live-in carers (non-family) providing full-time care who want to confirm whether both reliefs apply
• Families in multi-adult households where the combination of disregards, exemptions, and band reductions gets complicated

Who This Is NOT For

• Carers who don't live in the same property as the person they care for — the Carer Disregard requires co-residence, and the SMI disregard applies to the person's own property, not the carer's
• Anyone providing fewer than 35 hours of care per week — the Carer Disregard has a minimum care threshold (the SMI disregard has no such requirement for the carer)
• Households where the person with dementia is not entitled to a qualifying benefit — both the SMI disregard and the Carer Disregard require specific benefit entitlements

How to Claim Both Reliefs

If you believe both the SMI disregard and the Carer Disregard apply:

1. Apply for the SMI disregard first. This is the higher-value relief and applies to a wider range of carers (including spouses and partners). Get the GP to complete the medical certificate and submit the qualifying benefit proof.
2. Then apply for the Carer Disregard separately. This is a different application — the council needs to verify your care hours, your relationship, and the person's qualifying benefit. Some councils use a single form; others require separate applications.
3. Check whether a Disabled Band Reduction also applies. If the property has been adapted, this is a third application — typically to the billing authority (local council), not the Valuation Office Agency.

All three are free to claim. The council cannot charge for processing any of them.

Frequently Asked Questions

Can I get the Carer Disregard if I receive Carer's Allowance?

Receiving Carer's Allowance is not required for the council tax Carer Disregard — they're separate systems. However, receiving Carer's Allowance is strong evidence that you meet the 35-hour care threshold. You can qualify for the Carer Disregard without Carer's Allowance (for example, if your earnings exceed the Carer's Allowance threshold), as long as you provide at least 35 hours of care per week.

My partner has dementia and I care for them full time. What discount do I get?

As a spouse, civil partner, or partner living with the person as a couple, you cannot claim the Carer Disregard. But the SMI disregard removes your partner from the headcount. If you're the only other counted adult, you're the sole countable person — giving a 25% single-person discount. At England's 2026/27 average Band D bill of £2,392, that is about £598 a year. The discount can be backdated to the latest of the certified medical-onset date, qualifying-benefit entitlement date, and the date the property became the person's sole or main home.

Can the SMI disregard be backdated even though I only just found out about it?

Yes. There is no statutory time limit on backdating. The discount can apply from the latest of the certified medical-onset date, qualifying-benefit entitlement date, and the date the property became the person's sole or main home — even if that was years ago. Councils process backdated claims and issue refunds for overpaid years.

What if I'm a family carer but I also work part-time?

Working part-time doesn't disqualify you from the Carer Disregard, as long as you still provide at least 35 hours of care per week. The 35-hour threshold is about care hours, not employment status.

Does the person with dementia need to know about the claim?

No. If you hold a Lasting Power of Attorney for Property and Financial Affairs, you can manage the entire process. If you don't have an LPA, the council will usually accept a written letter of authority or work with a DWP appointee.

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