What you need to know about getting a council tax reduction
Brits who receive five benefits might also qualify for a council tax reduction. You should get in touch with your local authority to establish whether you’re entitled to reduced payments.
Your council sets its council tax rates, which pay for services such as refuse collection and road maintenance. The amount you owe depends on your property’s valuation band and your council area.
But not everyone needs to pay the full sum. Citizens Advice clarifies that certain people can access what’s termed council tax reduction (CTR).
This scheme supports those on limited incomes or in receipt of benefits. Citizens Advice states: “If you’re on a low income you might be able to get your council tax reduced. If you get benefits or have other people living with you, this might affect how much your council tax is reduced by.
“Your local council will ask you details about your income and your circumstances, so they can work out if you’re entitled to council tax reduction (CTR). They will then work out your new bill and tell you how much council tax you need to pay.
“If you have other people living with you who are aged 18 or over, you might all be responsible for paying council tax. Only one of you needs to apply for CTR.”
It’s important to note that CTR awards generally don’t involve direct cash payments. Instead, the council will lower the council tax amount you’re obliged to pay.
There are two types of CTR – one designed for working-age people and another for those who have reached State Pension age – with qualification criteria for the first category varying between local authorities.
To check your eligibility for a reduction, it’s recommended that you get in touch with your local council. You might qualify for CTR if you’re responsible for paying council tax and are receiving:
- Guarantee credit as part of Pension Credit, either on its own or combined with savings credit
- Universal Credit
- Income Support, income-based Jobseeker’s Allowance, or income-related Employment Support Allowance, which grants you maximum council tax reduction less any non-dependent deduction
If you live with another adult who isn’t your partner, your maximum council tax reduction might be decreased based on the presumption that they’ll help towards the payment, known as a ‘non-dependent deduction’. Even if you don’t receive these benefits, you can still apply for CTR provided you have modest earnings and savings under £16,000.
Furthermore, you may be eligible for a 25 per cent discount on your council tax bill if you live alone or if all other household members are considered “disregarded”. Those categorised as “disregarded” include individuals under 18, apprentices, full-time college or university students, student nurses, foreign language assistants registered with the British Council, those with severe mental impairment, live-in carers for someone who isn’t your partner, spouse, or child under 18, and diplomats.
For additional information, visit the Government website or contact your local council.
