Council Tax Reduction (Council Tax Support)
Council Tax Reduction (previously known as Council Tax Benefit) is a scheme run by your local council that can reduce or completely eliminate your Council Tax bill. It is one of the most widely available forms of financial support — millions of households in England receive some level of Council Tax Reduction. If you receive Pension Credit Guarantee Credit, you may be eligible for a full 100% reduction — meaning you pay no Council Tax at all. For a Band D property, this could save over £2,000 per year depending on your area. The national scheme for pension-age claimants is generally more generous than working-age schemes. For working-age claimants, each council sets its own local scheme, so the rules and maximum reduction vary. Most councils offer reductions of up to 75-100% for those on the lowest incomes, though some areas have a minimum contribution (typically 5-25% of your bill). You can check your council's specific scheme on their website or by contacting them directly.
Other Council Tax discounts
Beyond Council Tax Reduction, several other discounts and exemptions are available that many people do not claim. These can be combined with Council Tax Reduction for maximum savings. The single person discount gives 25% off your bill if you are the only adult counted for Council Tax purposes in your household. Importantly, certain people are "disregarded" and not counted — including full-time students, people with a severe mental impairment (such as dementia), live-in carers who provide care for at least 35 hours per week, and people in detention. This means you can live with a "disregarded" person and still qualify for the single person discount. The severe mental impairment exemption is particularly valuable and widely underclaimed. If someone in your household has a severe mental impairment (certified by a doctor) and receives a qualifying benefit such as PIP, Attendance Allowance, or ESA, they are "disregarded" for Council Tax. If they are the only occupant (or all occupants are disregarded), the property may be fully exempt from Council Tax. If one person remains counted, the 25% single person discount applies.
Disability reduction scheme
The disability reduction scheme is separate from Council Tax Reduction and can be claimed alongside it. It is available to any household where a disabled person lives, regardless of income. If your home meets any of the following criteria, your property is moved down one Council Tax band: The property has a room (other than a kitchen, bathroom, or toilet) that is mainly used by the disabled person and is essential to their wellbeing. The property has an additional bathroom or kitchen required for the disabled person's needs. The property has been structurally adapted to make it suitable for wheelchair use, or there is sufficient floor space inside for the disabled person to use a wheelchair. Moving down one band can save several hundred pounds per year — the exact amount depends on your area. For example, moving from Band D to Band C could save £200-£400 per year. If your property is already in Band A (the lowest), you receive a reduction equivalent to one-sixth of your Band D rate. This discount applies indefinitely as long as the qualifying conditions are met.
How to apply
Apply for Council Tax Reduction through your local council — most councils have an online application form on their website. You will need to provide details of your income, savings, benefits received, and everyone living in your home. Reductions usually start from the date of your application, so apply as soon as possible. If you receive Pension Credit, the DWP can sometimes pass your details to the council automatically, but it is worth checking directly that this has happened. For the single person discount, you can often apply online or by phone to your council — it is usually straightforward. For the disability reduction, contact your council directly and explain the qualifying features of your property. Keep evidence of any disability benefits you receive (award letters), medical certificates, and documentation of adaptations to your home. If your circumstances change — for example, if you start receiving a new benefit or someone moves out of your household — contact your council promptly to ensure you are getting all the discounts you are entitled to.
Related Benefit Pages
Council Tax Reduction
Reduction on Council Tax for people on low income or receiving certain benefits.
Pension Credit
Tops up weekly income for people over State Pension age.
Universal Credit
Main means-tested benefit for working-age people on low income.
Housing Benefit
Help with rent for people on low income.
Frequently Asked Questions
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