We are a private healthcare provider, and currently are delivering a support service to a number of clients living in shared accommodation, but with healthcare or local authority funded support packages. Our service users require support for various reasons including history’s of substance abuse, psychiatric conditions etc….

All our service users have letters from their GP’s or consultants confirming their mental health issues and their requirement for support.

If they were living in a private flat they would therefore be eligible for 100% discount on council tax however, as they are living in a shared house (typically four service users per property) we are being told that the most discount they are eligible for is 25%. The reason being specified is that if one service user has enough funds (which is often the case) to be above the threshold for which council tax relief starts they are required to cover the full council tax bill.

This situation seems completely unfair and we cannot believe it is right that this rule can be applied to vulnerable adults simply because they house share instead of living in a single flat or bedsit. Their mental health remains the same.

We want the best for our service users, and would therefore be extremely grateful if anyone could provide any guidance or advice on how to ensure they receive all the benefits to which they should be entitled. I should point out that our services are being delivered in South Wales.

Can I ask whether you are saying that they would be exempt from council tax on the grounds of severe mental impairment or are you asking about them being eligible for council tax benefit for only a quarter share of the council tax for that property (assuming 4 people are liable for council tax for that property).