Council Tax Reduction (CTR), sometimes called Council Tax Support, reduces your Council Tax bill if you’re on a low income or certain benefits. Each local council in England runs its own scheme.
For the wider overview of housing support, rent help and related council-cost relief, use the main Housing Benefits & Support hub.
Read more: See our Council Tax guide for a complete overview of this topic.
What is Council Tax Reduction?
Key Facts
| Feature | Details |
|---|---|
| Who administers it | Your local council |
| Based on | Income, savings, and household size |
| Maximum discount | Up to 100% (varies by council) |
| Applied to | Council Tax bill |
| Separate from | Universal Credit and other DWP benefits |
CTR vs the Old Council Tax Benefit
Before 2013, Council Tax Benefit was a national scheme. Since 2013, each council in England runs its own Local Council Tax Support scheme. Scotland and Wales still have national frameworks.
| Nation | Scheme Type |
|---|---|
| England | Each council sets its own rules |
| Scotland | National framework (Scottish Government) |
| Wales | National framework (Welsh Government) |
Who Qualifies
General Eligibility
| Requirement | Details |
|---|---|
| Liable for Council Tax | You must be the person responsible for the bill |
| Income | Below the council’s threshold |
| Savings/capital | Usually below £16,000 (some councils lower) |
| Residency | Live in the property in the council’s area |
Pension-Age Claimants
If you or your partner are of State Pension age, you’re usually assessed under a more generous scheme:
| Feature | Pension-Age Rules |
|---|---|
| Maximum CTR | Up to 100% |
| Framework | National framework (like old scheme) |
| Savings limit | Up to £16,000 (with tariff income above £10,000) |
Working-Age Claimants
If you’re under State Pension age, each council in England sets its own rules. Generally:
| Common Feature | Typical Rule |
|---|---|
| Maximum CTR | 80–100% depending on council |
| Income assessed | After disregards |
| Savings limit | Often £6,000–£16,000 |
| Work incentives | Many councils have earned income disregards |
Second Adult Rebate
If you’re the only person liable for council tax but you share your home with someone on a low income (not your partner), you may qualify for Second Adult Rebate:
| 2nd Adult’s Benefit Status | Rebate |
|---|---|
| On Income Support / income-based JSA / income-related ESA / UC (no earnings) | 25% |
| Gross income under £242/week | 15% |
| Gross income £242–£322/week | 7.5% |
How Much You Could Get
Pension Age — Worked Example
| Scenario | Weekly Income | CTR Amount |
|---|---|---|
| Only income is State Pension of £230/week | Below applicable amount | Large reduction |
| State Pension + pension income, total £450/week | May exceed threshold | Partial or none |
Pension-age CTR is calculated to fill the gap between your income and your “applicable amount” — a minimum income level set nationally.
Working Age — Variable by Council
| Example Council Max | % Off Bill |
|---|---|
| 100% | Full discount possible for lowest incomes |
| 85% | Maximum saving = 85% of the bill |
| 75% | Maximum saving = 75% of the bill |
To check your local council’s scheme, search “[your council name] council tax support scheme”.
Savings and Capital Rules
| Capital | Effect |
|---|---|
| Under £6,000 (working age, many councils) | Fully disregarded |
| £6,000–£16,000 | Tariff income added (£1/week per £250 above £6,000) |
| Over £16,000 | Usually not eligible |
| Pension age under £10,000 | Fully disregarded |
| Pension age £10,000–£16,000 | Tariff income applies |
Some councils use lower capital limits for working-age claimants.
Earnings Disregards
Many councils disregard some of your earnings when calculating CTR:
| Claimant Type | Typical Earnings Disregard |
|---|---|
| Single person | £5/week |
| Couple | £10/week |
| Carer or disabled person | Higher disregard |
| Lone parent | Higher disregard |
The exact disregards vary by council. Edinburgh, for example, has different rules from Manchester.
Additional Discounts on Top of CTR
Even before CTR is calculated, you may qualify for automatic Council Tax discounts:
| Discount | Amount | Who Gets It |
|---|---|---|
| Single person discount | 25% | Only one adult in property |
| Severely mentally impaired | 100% (if alone); others disregarded | Severe mental impairment |
| Student discount | Varies | Full-time students |
| Disabled person’s reduction | Band reduction | Property adapted for disability |
These discounts stack with CTR.
Single Person Discount — Full Details
If you live alone — or if all other adults in your home are “disregarded” — you get a 25% discount.
People who are disregarded (don’t count as adults for council tax):
| Category | Notes |
|---|---|
| Full-time students | 21+ hours per week on a year-long course |
| Apprentices | Earning under £195/week |
| Carers | Caring for someone other than a spouse |
| Severely mentally impaired | With medical certificate + qualifying benefit |
| Live-in care workers | Earning under £44/week |
| Members of religious communities | Certain orders only |
| Under-18s | Always disregarded |
| Full-time student nurses | Certain courses |
Examples:
| Household | Countable Adults | Discount |
|---|---|---|
| You alone | 1 | 25% |
| You + full-time student partner | 1 | 25% |
| You + adult child who’s a student | 1 | 25% |
| You + working partner | 2 | None |
| You + elderly parent with dementia (SMI) | 1 | 25% |
Student Households
| Household Type | Council Tax |
|---|---|
| All full-time students | 0% — fully exempt |
| Students in university halls | Usually exempt |
| One student, one non-student | Non-student pays (possible discount) |
| Part-time students | Count as adults |
Evidence required: a student status letter from your university or college, valid for each academic year.
Disability Discounts
Disabled Band Reduction Scheme
If your home has been adapted for a resident’s disability — an extra bathroom, room for dialysis equipment, or extra space needed for a wheelchair — you can apply to be placed in the band one below your actual band. Band A properties get a 1/9th reduction instead.
Severely Mentally Impaired (SMI)
Someone with a severe, permanent impairment of intelligence and social functioning (dementia, severe learning disability, brain injury) can be disregarded for council tax purposes — reducing the bill by 25%, or 100% if they are the only resident.
Empty Property Rules
| Situation | Typical Treatment |
|---|---|
| Empty and unfurnished (short-term) | Short discount period (varies by council) |
| Second home | Full charge, often a premium |
| Long-term empty (2+ years) | Up to 200% premium |
| Deceased person’s property | Exempt up to 6 months after probate |
| Property in probate | 6-month exemption |
| Owner in hospital or care home | Exempt while away |
| Uninhabitable (major repair) | Up to 12 months exemption |
Challenging Your Council Tax Band
If neighbouring properties of the same type and size are in a lower band, you may have grounds to challenge. All valuations are based on 1991 property values, so recent prices are not the basis for a challenge.
How to challenge:
- Look up your property at gov.uk/council-tax-bands
- Search nearby similar properties to compare bands
- If you find evidence your band is wrong, submit a challenge via the Valuation Office Agency (VOA) at gov.uk/challenge-council-tax-band — it’s free
- The VOA investigates (can take several months)
- The band may stay, go down, or go up
Warning: A challenge is not risk-free. If the VOA decides your band was too low, it can be raised — increasing your bill and potentially your neighbours’ bills too. Always check carefully before challenging.
Hardship and Payment Problems
Can’t Pay Council Tax?
| Option | Who to Contact |
|---|---|
| Apply for CTR | Your local council |
| Request a payment arrangement | Your council — call before you miss a payment |
| Discretionary Hardship Payment | Ask your council if they offer one |
| Free debt advice | Citizens Advice, StepChange |
What Happens If You Don’t Pay
| Stage | What Happens |
|---|---|
| First reminder | 7 days to pay |
| Second reminder | Lose right to pay in instalments |
| Court summons | Costs added (typically £70–£100) |
| Liability order | Council can instruct enforcement |
| Bailiff visit | Last resort; further fees added |
Act early. A payment arrangement agreed before a court summons costs nothing. Wait until after and you’re paying the court costs too.
Council Tax Checklist
| Discount / Reduction | Currently Getting It? |
|---|---|
| Single person discount (25%) | ☐ |
| Full student exemption | ☐ |
| Disability band reduction | ☐ |
| SMI disregard | ☐ |
| Council Tax Reduction (CTR) | ☐ |
| Correct band (compared to similar homes) | ☐ |
| Second adult rebate (if applicable) | ☐ |
Review annually when household circumstances change (student graduating, someone moving in, income change).
How to Apply
Steps to Apply
- Contact your local council (search “[council name] council tax support”)
- Most councils have an online application form
- Submit required documents
- Council processes the claim and adjusts your bill
What You’ll Need
| Document | Purpose |
|---|---|
| National Insurance number | Your identity |
| Bank statements (recent) | Savings check |
| Payslips or P60 | Income evidence |
| Benefit award letters | If receiving DWP benefits |
| Tenancy agreement | If renting |
| Partner’s details | If applicable |
Fast Track Applications
If you claim Universal Credit, many councils automatically process a CTR claim alongside it — ask your council whether this applies.
Backdating
You can ask for CTR to be backdated. Councils can usually backdate working-age claims to a maximum of 1–3 months (varies). Pension-age claims can often be backdated longer.
Changes in Circumstances
Always tell your council immediately if:
- Your income changes
- You move
- Someone moves in or out
- Your savings change significantly
- You start or stop work
Failure to report changes can lead to overpayments that you’ll have to repay.
Council Tax Reduction in Scotland
Scotland runs a national CTR scheme:
| Feature | Scotland Rule |
|---|---|
| Maximum CTR | Up to 100% |
| Savings limit | £16,000 |
| Applies to all | Working age and pension age under same framework |
Apply via your local Scottish council (e.g., Edinburgh City Council, Glasgow City Council).
Council Tax Reduction in Wales
Wales also runs a national scheme with up to 100% CTR available for the lowest incomes.
Apply via your local Welsh council.
If You Dispute Your CTR Decision
| Step | Action |
|---|---|
| 1 | Ask for an explanation of the decision |
| 2 | Request a formal review/appeal within 1 month |
| 3 | Appeal to the Valuation Tribunal |
| 4 | Citizens Advice can help you through this process |
Other Benefits to Claim Alongside CTR
| Benefit | Relevance |
|---|---|
| Universal Credit | Often triggers CTR check |
| Pension Credit | Guarantees 100% CTR for pension-age claimants |
| Housing Benefit | Help with rent |
| Free School Meals | For families with children |
| Healthy Start vouchers | Pregnant women, young children |
Quick Reference
| Question | Answer |
|---|---|
| Who administers it? | Your local council |
| Maximum discount | Up to 100% (pension age); varies for working age |
| Based on? | Income, savings, household |
| Affects UC? | No |
| Savings limit (typical) | £16,000 |
| Who to apply to? | Your local council directly |
| Backdating allowed? | Yes (usually 1–3 months) |
| Taxable? | No |