Fifers struggling with council tax payments are being advised to seek help, as new figures reveal nearly half a million households receive discounts on their bills.

The Council Tax Reduction (CTR) scheme supports people on low incomes, potentially saving them hundreds of pounds a year.

In some cases, it can reduce bills by up to 100 per cent.

Recently published Scottish Government figures show that 462,310 households received a reduction in July, amounting to an estimated £8.9 million in weekly support.

placeholder image — Craig Tobin of Advice Direct Scotland

The number of recipients is up on June’s figure of 460,080.

Advice Direct Scotland, which runs the free moneyadvice.scot service, is urging people to check their eligibility to ensure they do not miss out. Support is available at www.moneyadvice.scot or on 0808 196 2316.

Craig Tobin, head of business development and impact at Advice Direct Scotland, said: “It’s harrowing to hear from people distressed over council tax debt.

“This year’s council tax increases have placed further pressure on individuals and families already struggling with rising energy bills and the cost-of-living crisis.

“Demands for payment and threats of enforcement over council tax debt can make money worries even more stressful.

“That’s why it’s so important to make sure you’re receiving all the financial support you’re entitled to.

“The Council Tax Reduction scheme is there to help, and we want to make sure everyone eligible knows about it. Our expert advisers are on hand to guide people through the process and check if they qualify.

“With the right support, people can manage their debts, avoid serious consequences, and work with local authorities to find fair, sustainable solutions.”

Council tax arrears are a ‘priority debt’, meaning they should be addressed before other debts to avoid harsher enforcement measures, such as bank or wage arrestment.

Councils can seize benefits and take other actions to recover the owed payments, risking the loss of homes or tenancy agreements if left unresolved.

Advice Direct Scotland is urging anyone who has missed a payment to contact their council immediately, rather than waiting to be contacted, and to request to pay in smaller amounts.

The CTR scheme takes into account a household’s income, savings, and personal circumstances, and is open to everyone, including those not receiving benefits. People can check their eligibility through mygov.scot or by contacting their local council.

Entitlement depends on income, savings and other factors, such as whether there are children in the household, if anyone living there has a disability, or if the household receives certain state benefits, including Universal Credit, Income Support, income-based Jobseeker’s Allowance, or income-related Employment Support Allowance.

If you live with another adult who is not your partner, you may not receive the same level of CTR, as the other person is expected to contribute to the council tax bill.

Even those who do not receive benefits can apply if they are on a low income and have savings below £16,000.