Council Tax Reduction

You may be able to get a reduction on your council tax if you have a low income through your local authority Council Tax Reduction scheme (which some local authorities may call Council Tax Support). Entitlement depends on your income, savings, circumstances and where you live.

Council Tax Reduction is administered by your local council.

For more information about Council Tax, including reductions and discounts see the government website

You can also find specific information for Scotland and Wales on their respective government websites.

If you’re struggling to pay your Council Tax Citizens Advice or Money Helper may be able to help.

You can also search here for local advice organisations who may be able to give you money and debt advice.

Council Tax Reduction (also known as Council Tax Support)

If you have a low income, you may be entitled to a reduction to the amount of council tax you have to pay through the Council Tax Reduction scheme (which some councils call Council Tax Support).

In England Council Tax Reduction is set locally by your local council so the support available is different depending on which local authority area you live in. In Scotland it is set nationally so the support is the same no matter your local authority area. In Wales, your local authority may have their own scheme, but if not, a national scheme applies.

Across England, Wales and Scotland to qualify for Council Tax Reduction you must:

• Be liable for Council Tax
• Not be subject to immigration control and you must satisfy the habitual residence test

Whether you qualify for Council Tax Reduction is subject to your income and savings. We briefly outline the rules in England, Scotland and Wales below.

Please note that the following information applies to people of working age. There may be different rules if you are over State Pension age. Age UK may be able to advise you about Council Tax Reduction if you are over State Pension age.

For further advice about working age and State Pension age Council Tax Reduction, Citizens Advice may be able to help.

England

In England the support varies between local authority areas so there is no national set criteria. This means that the income and savings thresholds to qualify may be different depending on where you live. However, you won’t usually qualify if you have savings or other assets over £16,000. Some local authorities may also require you to be in receipt of certain benefits to qualify for Council Tax Reduction.

The amount of reduction will vary too, depending on where you live. Some English local authorities may reduce your bill to £nil. However, the maximum reduction may mean you still have to pay some Council Tax in other areas even if your only income is benefits.

You can use an online benefits calculator to help work out if you are entitled to Council Tax Reduction.

In England you must usually apply for Council Tax Reduction via your local council. However, some English local authorities may treat you as having applied for Council Tax Reduction if you apply for Universal Credit. You should not assume that applying for Universal Credit will automatically mean your council treats you as also having made a Council Tax Reduction claim. If in doubt, always check with your local council whether you need to make a separate claim.

You may be able to backdate your application but this depends on the rules of your local authority’s scheme.

If you disagree with a decision about your Council Tax Reduction entitlement you can appeal to your local authority. In England there is no formal time limit for lodging an appeal. If you need support with your appeal Citizens Advice may be able to help.

Scotland

In Scotland entitlement depends on your income and savings and is the same across all Scottish local authorities.

If your income is below an assessed level, known as your applicable amount, which depends on your circumstances you are entitled to the maximum amount of Council Tax Reduction which is 100% of your Council Tax bill. This means that you will not have to pay any council tax.

If your income is above your applicable amount, which is based on your circumstances, your maximum Council Tax Reduction is reduced by 20% of your excess income.

You will not be entitled to Council Tax Reduction if you have savings or other assets over £16,000. If you have savings between £6,000 and £16,000 your maximum Council Tax Reduction will be reduced depending on your level of savings. Savings below £6,000 will not affect your entitlement to Council Tax Reduction.

You can use an online benefits calculator to help work out if you are entitled to Council Tax Reduction.

In Scotland you must usually apply for Council Tax Reduction via your local council. However, some Scottish local authorities may treat you as having applied for Council Tax Reduction if you apply for Universal Credit. You should not assume that applying for Universal Credit will automatically mean your council treats you as also having made a Council Tax Reduction claim. If in doubt, always check with your local council whether you need to make a separate claim.

You may be able to backdate your application up to six months if you can show you had a continuous good reason for not applying sooner.

If you disagree with a decision about your Council Tax Reduction entitlement you can appeal to your local authority. In Scotland you must lodge an appeal within two months of the decision you disagree with. If you need support with your appeal Citizens Advice may be able to help.

Wales

In Wales you should check if your local authority has adopted their own Council Tax Reduction scheme as entitlement will depend on the rules of your local authority’s specific scheme.

If your local authority does not have its own Council Tax Reduction scheme the default scheme will apply.

Under the default scheme if your income is below an assessed level, known as your applicable amount, which depends on your circumstances you are entitled to the maximum amount of Council Tax Reduction which is 100% of your Council Tax bill. This means that you will not have to pay any council tax.

If your income is above your applicable amount, which is based on your circumstances, your maximum Council Tax Reduction is reduced by 20% of your excess income.

You will not be entitled to Council Tax Reduction if you have savings or other assets over £16,000. If you have savings between £6,000 and £16,000 your maximum Council Tax Reduction will be reduced depending on your level of savings. Savings below £6,000 will not affect your entitlement to Council Tax Reduction.

You can use an online benefits calculator to help work out if you are entitled to Council Tax Reduction.

In Wales you must usually apply for Council Tax Reduction via your local council. However, you are automatically treated as having applied for Council Tax Reduction if you apply for Universal Credit without having to separately apply for Council Tax Reduction.

You may be able to backdate your application up to three months if you can show you had a continuous good reason for not applying sooner.

If you disagree with a decision about your Council Tax Reduction entitlement you can appeal to your local authority. In Wales you must lodge an appeal within one month of the decision you disagree with. If you need support with your appeal Citizens Advice may be able to help.

Discretionary reductions

In England and Wales, if you are not entitled to Council Tax Reduction, you may be entitled to a discretionary reduction. Your local authority has the power to reduce your council tax bill in individual circumstances (such as financial hardship) or group cases (such as a local emergency like flooding).

You should apply to your local authority for a discretionary reduction in writing, stating that you are applying under section 13A of the Local Government Finance Act 1992. You will need to provide supporting evidence.

Citizens Advice may be able to help you to ask for a discretionary reduction to your Council Tax.

Council Tax discounts are available to people in specific circumstances. They are based on who lives in your house rather than your income and savings.

Council Tax Discounts

Council Tax discounts are separate to the Council Tax Reduction scheme.

Entitlement to a Council Tax discount depends on your circumstances and who lives in your home rather than your income and savings.

If you are single and the only adult living in your home, you should get an automatic 25% discount off your Council Tax bill.

Full-time students are usually exempt from paying council tax.

If you are disabled or somebody in your household is disabled, you may be entitled to a discount off your Council Tax through the Disabled Band Reduction Scheme. You may also get a discount if anybody in your household has a severe mental impairment (or severe cognitive impairment in Wales).

You may be entitled to a Council Tax discount as well as Council Tax Reduction. For example, you may be entitled to a 25% single person discount if you are the only adult living in your home, plus Council Tax Reduction on your remaining bill if you have a low income.

Check with your local council to see if you are eligible for a Council Tax Discount.

Citizens Advice may be able to help with any questions you have about Council Tax discounts.

This advice applies in England, Wales and Scotland. If you live in another part of the UK, the law may differ. Please call our helpline for more details. If you are in Northern Ireland you can visit the Labour Relations Agency or call their helpline Workplace Information Service on 03300 555 300.

If you have further questions and would like to contact our advice team please use our advice contact form below or call us

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This advice applies in England, Wales and Scotland. If you live in another part of the UK, the law may differ. Please call our helpline for more details. If you are in Northern Ireland you can visit the Labour Relations Agency or call their helpline Workplace Information Service on 03300 555 300.

If you have further questions and would like to contact our advice team please use our advice contact form below or call us

We would love your feedback

• 

  Would your employer benefit from support from Working Families?

  Would your employer benefit from some support & guidance from Working Families? If you would like to make your employer aware of how Working Families can help them, we have an introduction letter template available that you can give to the relevant person in your organisation.