Give your finances a boost: 'free' cash for UK families

The financial boost is due to many families across the country – but are you eligible?

UK families could get hundreds of pounds of 'free' cash in February and March this year.

The cash boost comes in the form of two months 'off' an essential household bill and could see families having hundreds extra in their bank accounts.

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How does it work?

The 'free' cash comes as part of your Council Tax bill – a monthly payment to your local council that pays for the local services you use.

While payments are calculated to cover the full year, because of the way the bill works, most councils only charge households for 10 months out of 12.

Meaning families get a break from paying over February and March.

Hyndburn Borough Council, in Lancashire, is just one of the councils who offer this.

The council states:

'A standard Council Tax bill is payable over 10 months from April to January, usually on the first of each month (other dates are available by Direct Debit include the 10th, 20th and 28th).

'This gives people two months off paying Council Tax in February and March, sometimes referred to as "free months".

Leeds Council added:

'The default for the vast majority is to have 10 monthly Council Tax payments each year, then have two months off.'

Leeds households, on average, pay around £190 per month on Council Tax, meaning they'll save £380 over the next two months.

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How does Council Tax work?

Council Tax is a tax to help your local council pay for the services they provide – such as bin collection, road maintenance and street lighting.

It also pays for maintaining local libraries, leisure centres, police and fire services and more.

You'll usually pay for Council Tax online or via Direct Debit and this is normally done over a 10-month period, from 1 April to 1 January.

Why is Council Tax paid over 10 months?

According to some, councils set up a 10-month payment plan to allow for 'wiggle room', when it comes to people moving house.

However, you can opt to change this so you can spread your monthly payments over a 12-month period instead, which helps reduce the cost of your monthly bill.

And not every council opts for a 10-month payment plan. Some automatically ask you to pay over 12 months anyway.

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Council tax discounts

You’ll usually have to pay Council Tax if you’re aged 18 or over.

A full Council Tax bill is based on at least two adults living in a home, with couples equally responsible for paying their share of the bill.

However, some people are 'disregarded', or not counted, when working out how many people live in a property.

This means you may be eligible for a discount on your Council Tax bill.

Those disregarded include people:

• under 18 years old
• on certain apprentice schemes
• 18 or 19 years old and in full-time education
• a full-time student at college or university
• under 25 years old and get funding from the Education and Skills Funding Agency
• a student nurse
• a foreign language assistant registered with the British Council
• severely mentally impaired
• a live-in carer for someone who is not your partner, spouse, or child under 18
• a diplomat

You'll need to apply for a discount or exemption if you're disregarded.

How much discount could I get?

You'll get 50% off your bill if everyone in your household is disregarded, and 25% off your bill if you pay Council Tax and either live on your own or everyone else in your home is disregarded.

More financial help for families

Need further help and advice? You'll find details on all the benefits and entitlements you may be able to claim via the Netmums' Cost of Living hub.

There you'll find lots of Government-based advice on cash you might be entitled to, plus all the dates when you can expect the latest Cost of Living payments and other allowances to land in your bank account.

There are also top tips from the Money Saving Expert, Martin Lewis, as well as brilliant ideas for saving money on everything from your weekly shop, to that well-deserved holiday.

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