Council Tax reduction and discounts, what you can claim

Direct answer

Council Tax is the local tax that pays for council services, and it can be hundreds of pounds a month. If you are on a low income, you can apply to your council for Council Tax Reduction (sometimes called Council Tax Support), which can cut your bill by up to 100%. On top of that, there are flat-rate discounts for single occupants, students, severely mentally impaired adults, and others. This article explains what to claim.

What Council Tax is

Council Tax is set by your local council based on the band of your home (A to H, where A is lowest). The total is divided into 10 or 12 monthly payments by default. You can usually spread it over 12 months if you ask.

Each council sets its own discounts and reductions within national rules.

Council Tax Reduction (the main scheme)

Council Tax Reduction (CTR) is the main scheme for people on a low income. It is means-tested:

• The council looks at your income, savings, household size and circumstances.
• You may get up to 100% off your bill, or just a partial reduction.
• The scheme rules vary by council (each one writes its own rules within national guidance).
• Pensioners are usually treated more generously than working-age claimants.

Who can apply:

• You pay Council Tax for your home.
• You are on a low income or receive benefits.
• You have savings under a threshold (often £6,000 to £16,000 depending on your council).

How to apply:

1. Find your council on gov.uk/find-local-council.
2. Look for "Council Tax Reduction" or "Council Tax Support" on their website.
3. Most councils have an online application form.
4. You will need to provide income details, ID, and proof of benefits if you get any.

If awarded, the reduction is applied directly to your Council Tax bill.

The Single Person Discount (25% off)

If you are the only adult living in the home, you get a flat 25% discount off the full bill. Easy and worth a lot.

Apply to your council. Most have an online form. Once granted, the discount continues until your circumstances change.

You must tell the council if anyone else moves in, otherwise you can be fined for not reporting changes.

Disregards (people who are not counted)

Even if other people live with you, some are "disregarded" for Council Tax. If everyone except one adult is disregarded, you still get the 25% Single Person Discount.

Disregarded people include:

• Full-time students.
• Apprentices earning under a threshold.
• Adults in full-time education (under certain age and circumstances).
• Severely mentally impaired adults (with a doctor's certificate and proof of qualifying benefit).
• Carers providing 35+ hours a week to a non-spouse, non-child relative.
• People in prison.
• People in hospital long-term or in a care home.

If everyone in the home is disregarded, the bill drops to 50% (and in some cases 0%).

All-student households

If everyone in the home is a full-time student, the home is exempt from Council Tax entirely. You apply through your council with student certificates from your university.

Severely Mentally Impaired (SMI) exemption

This is a discount many people do not know about. If someone in the home is "severely mentally impaired" (the legal phrase, includes serious dementia, Alzheimer's, some learning disabilities, some mental-health conditions), they can be disregarded.

You need:

• A doctor's certificate confirming the diagnosis.
• Proof of a qualifying benefit (PIP daily living, Attendance Allowance, Severe Disablement Allowance, etc.).

If everyone except one adult is SMI, that adult gets the 25% Single Person Discount. If the only adult in the home is SMI, the bill drops to 100% off.

This can be back-claimed for many years. It is worth applying even if the diagnosis is old.

Second Adult Rebate (pensioners only)

If you are a pensioner with one or more other adults living with you who have low income (and they are not your partner), you may qualify for Second Adult Rebate instead of Council Tax Reduction. The council calculates which gives you the bigger discount.

Empty homes and second homes

If you have a second home or an empty home, expect the opposite, councils can charge more than 100% Council Tax on long-term empty homes. Some councils charge double or even triple.

What to do if your bill is wrong

1. Check your band at gov.uk/check-council-tax-band. Bands are based on 1991 values and many are wrong.
2. If wrong, challenge it at the Valuation Office Agency (gov.uk/challenge-council-tax-band). You may get back-pay if reduced.
3. Appeal a Council Tax decision by writing to your council. If still wrong, go to the Valuation Tribunal Service.

How we can help

Council Tax problems are not our work. The right places to call:

• Citizens Advice 0808 223 1133
• StepChange 0800 138 1111 if you are behind on Council Tax
• Money Helper 0800 138 7777
• Your council's Council Tax team.

If your home is in disrepair and that has contributed to financial pressure, we can help with the disrepair side. Call us free on 0800 030 4669.

Free call: 0800 030 4669 | Start your claim

Sources

• Local Government Finance Act 1992 (council tax) (legislation.gov.uk)
• Apply for Council Tax Reduction (GOV.UK)