What Is Council Tax Reduction?

Council Tax Reduction can reduce the amount of Council Tax you have to pay if you are on a low income.

It is sometimes called Council Tax Support. It is separate from discounts such as the single-person discount.

Who might qualify?

Eligibility depends on the rules applying where you live and your household circumstances. Councils may look at income, benefits, savings, who lives with you and whether you have reached State Pension age.

You do not necessarily need to be out of work. Some people who work and have a low income may still qualify.

Why can the amount differ between councils?

For working-age households, local schemes can differ. That means somebody in one council area may not receive exactly the same reduction as somebody with apparently similar circumstances elsewhere.

People who have reached State Pension age are covered by a more nationally prescribed framework, although the council still administers the claim.

Is Council Tax Reduction the same as a discount?

No. A reduction based on low income is different from discounts or exemptions based on household circumstances.

For example, somebody might qualify for Council Tax Reduction and also have another discount applied. The interaction depends on the circumstances.

How do I apply?

Use your local council’s current application process. You may need information about income, savings, benefits, other adults in the household and housing circumstances.

If you are unsure which council is responsible, use your postcode to identify the local authority that issues your Council Tax bill.

What if my circumstances change?

Changes to income, household members, benefits or other circumstances can affect entitlement. Check what your council requires you to report and when.

If your reduction stops or changes unexpectedly, read the decision and ask for an explanation rather than simply assuming it is correct.

7.17: I’ve Had a Change in Circumstances, Do I Need to Report It?

7.46: I’m Behind With My Council Tax

7.10: How Can I Check Whether I’m Missing Out on Benefits?

Important information

This guide provides general information and is not intended to provide financial, benefits, debt, housing or legal advice. Individual circumstances can be different. Check current information from official sources and seek advice from an appropriately qualified or authorised adviser before making important financial decisions.