Council Tax Reduction Explained

Council Tax Reduction (sometimes called Council Tax Support) is a scheme that helps people on a low income pay their Council Tax bill.

Each local council runs its own Council Tax Reduction scheme, which means the amount of help available and the eligibility rules may vary depending on where you live.

If you're struggling with household costs, it's worth checking whether you could receive help with your Council Tax.

Council Tax Reduction is designed to reduce the amount of Council Tax you have to pay if you have a low income.

Depending on your circumstances, you may receive:

• A partial reduction in your bill.
• A significant reduction in your bill.
  
• In some cases, a reduction of up to 100%.

The amount awarded will depend on your household circumstances and your local council's scheme.

You may be able to claim Council Tax Reduction if:

• You are responsible for paying Council Tax.
• You are on a low income.
• You receive certain benefits.
• You have little or no savings.
• You are unemployed or working on a low wage.

You may be eligible whether you:

• Rent your home.
• Own your home.
• Are unemployed.
• Are working.

The council will usually consider:

• Your income.
• Your savings and investments.
• Who lives in your household.
• Whether you have children.
• Whether anyone in the household has a disability.
• Other benefits you receive.

The exact rules depend on your local authority.

Yes.

Many people assume they cannot claim because they are employed, but Council Tax Reduction is available to many working households on a low income.

Even a small reduction can help reduce monthly household costs.

Yes.

People who have reached State Pension age may be eligible for Council Tax Reduction.

Different rules often apply to pension-age households, and support may be available alongside Pension Credit.

You may qualify for additional support if:

• You receive a disability benefit.
• Someone living with you has a disability.
• Your property has been adapted because of a disability.

Some households may qualify for further Council Tax discounts or reductions.

Yes.

Receiving Universal Credit does not automatically mean you will receive Council Tax Reduction, but many people who receive Universal Credit are also entitled to support with their Council Tax.

A separate application is usually required through your local council.

Having savings does not automatically prevent you from receiving Council Tax Reduction.

However, the amount of savings you have may affect:

• Whether you qualify.
• How much support you receive.

The rules vary between local authorities and pension-age households.

Applications are normally made through your local council.

You may be asked to provide:

• Proof of identity.
• Details of your income.
• Information about benefits you receive.
• Details of savings and investments.
• Information about other people living in your home.

Providing accurate information can help avoid delays.

You should tell your local council if you experience changes such as:

• Starting or leaving work.
• Changes to your income.
• Moving home.
• Changes to your household.
• Changes to your benefits.
• Changes to your savings.

Reporting changes promptly helps ensure your award remains accurate.

In addition to Council Tax Reduction, some people may qualify for other discounts, including:

• Single Person Discount.
• Severe Mental Impairment discounts.
• Student exemptions.
• Disability-related reductions.
• Empty property exemptions in limited circumstances.

You may be entitled to more than one form of support.

"I Work, So I Can't Claim"

Many working households receive Council Tax Reduction.

"I Own My Home, So I'm Not Eligible"

Homeowners can still qualify if they meet the eligibility criteria.

"I Receive Universal Credit Automatically"

Council Tax Reduction usually requires a separate application to your local council.

Our advisors can help you:

• Check whether you're entitled to Council Tax Reduction.
• Understand your local council's scheme.
• Complete an application.
• Report changes in circumstances.
• Access additional financial support.

Contact our team for free, confidential advice and support.