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Council care & support

Council Tax Reduction

Means-tested discount on the council tax bill for people on a low income or claiming certain benefits — sometimes up to 100% off. Apply through your local council.

Official linksLast verified 27 April 2026

Who it helps

Anyone over 18 named on a council tax bill whose household income is low, or who claims a means-tested benefit like Pension Credit, Universal Credit, income-based ESA or income-based JSA. Pension-age claimants get a more generous national scheme.

The full picture

Council Tax Reduction (sometimes called Council Tax Support) cuts your bill if you are on a low income or claiming a means-tested benefit like Pension Credit, Universal Credit, income-based ESA or income-based JSA.

In England each council sets its own scheme — some give working-age claimants up to 100% off, others impose a minimum payment of around 20%. Pension-age claimants follow a national scheme that mirrors the old Council Tax Benefit and can reduce the bill to nil.

In Scotland, Wales and Northern Ireland the schemes are run nationally and tend to be more generous than the average English council. Northern Ireland calls it Rate Rebate (or Rate Relief if you receive Universal Credit) because it has Rates rather than Council Tax.

What you'll need to apply: - Last 3 months of payslips or benefit award letters - Bank statements showing savings - Details of anyone else living with you (their income may be counted as a non-dependant deduction)

Council Tax Reduction stacks with other discounts. Check whether you qualify for any of these first — they reduce the bill before CTR is calculated: - Single Person Discount (25% off if you live alone) - Severe Mental Impairment (SMI) Disregard (taken out of the household count entirely) - Disability Reduction (one band lower if the home has been adapted)

Worth knowing before you apply

  • England has 326 different council schemes — discounts and thresholds vary widely
  • Many English councils require working-age claimants to pay at least 20% of the bill, even on a 100% scheme
  • Pension-age claimants generally get more generous discounts under the national pension scheme
  • Savings over £16,000 disqualify most working-age applicants
  • Northern Ireland uses Rate Rebate / Rate Relief instead — different administration but same idea
  • Apply for Single Person Discount and SMI Disregard first — they reduce the bill before CTR is calculated
  • A non-dependant adult (e.g. an adult child) living with you can reduce or cancel CTR depending on their income

How to claim

Search "council tax reduction" on your local council's website (in NI, search "Rate Rebate" on nidirect). Apply online with proof of income, savings and household composition. Decisions usually take 2–4 weeks. Backdating is sometimes possible — ask explicitly when you apply.

Last verified 27 April 2026
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