Council Tax is a significant expense for most UK households—but you could be entitled to a reduction of 25% to 100%, saving you hundreds or even thousands of pounds each year.
From single-person households to students, carers, people on low incomes, and those with empty or adapted properties—millions are eligible for Council Tax discounts or reductions and don't even know it.
This definitive guide explains everything you need to know about Council Tax Reduction (CTR), including who qualifies, how much you could save, how to apply (including how to backdate claims), and common mistakes to avoid.
What's in this guide:
- What is Council Tax Reduction?
- Who is eligible for Council Tax Reduction?
- How much can you save?
- How to apply for Council Tax Reduction
- Can you combine discounts?
- What happens if you miss a payment?
- Frequently Asked Questions
1. What Is Council Tax Reduction?
Council Tax Reduction (sometimes called Council Tax Support) is a means-tested scheme run by local councils to help people on low incomes or certain benefits reduce their bill.
Separate from discounts, it considers your income, savings, household makeup, and benefits. Each local authority runs its own scheme, so eligibility and amounts vary depending on where you live.
Pro Tip:
Use our eligibility checker to quickly determine if you qualify for Council Tax Reduction based on your specific circumstances.
2. Who Is Eligible for Council Tax Reductions or Discounts?
Council Tax savings fall into three key categories:
Based on Who Lives in the Property
You might be entitled to a 25%–100% discount depending on your household members:
| Household Setup | Possible Discount |
|---|---|
| You live alone | 25% |
| Everyone in your home is disregarded* | Up to 100% |
| One qualifying adult + disregarded others | 25% |
Who is disregarded for Council Tax?
These people don't count as qualifying adults:
- Children under 18
- Full-time students
- Apprentices
- Live-in carers
- Adults with a Severe Mental Impairment (SMI)
- Ukrainian refugees under sponsorship
- Young people on specific training schemes
Tip:
Two full-time students living together usually pay zero Council Tax. Use our eligibility checker to confirm your student status.
Based on Income or Benefits
You could qualify for up to a 100% Council Tax reduction if you are:
- On Universal Credit, Income Support, ESA, Jobseeker's Allowance, or Pension Credit
- A low-income earner (even if working or self-employed)
- Receiving the guaranteed part of Pension Credit
Local councils assess your eligibility based on income (yours and your partner's), number of children, household savings, and other adults in the home.
Check your council's website for the specific criteria—they vary across the UK.
Based on the Property Itself
Some discounts are linked to your home's use or condition, including:
Homes Adapted for Disability
Council Tax band reduction (or 17% discount if already in Band A). Applies if the home has special features like:
- Extra bathroom or kitchen
- Room mainly used by a disabled person
- Wheelchair-accessible spaces
Properties Under Renovation
Up to 12 months of 100% exemption while major structural repairs are ongoing
Empty Homes
No Council Tax if:
- Owner is in hospital/care home
- Owner is deceased and probate not yet granted
- Owner is in prison (excluding Council Tax debt cases)
Annexes
50% discount on the annexe if it's occupied by a relative or used by the main householder
Second Homes
Limited discounts. From April 2025, councils can apply a 100% premium—doubling your bill unless the second home is work-related
3. How Much Can You Save?
| Scenario | Potential Saving |
|---|---|
| Single person discount | 25% off annual bill |
| Severely mentally impaired (SMI) exemption | Up to 100% off |
| Low-income Council Tax reduction | Up to 100% off |
| Disabled band reduction | One band lower / ~17% off |
| Empty or exempt property | 100% off (for a period) |
| Annexe occupied by family | 50% off annexe portion |
Calculate Your Exact Savings
Use our Council Tax Reduction calculator to see exactly how much you could save based on your specific circumstances.
Calculate My Savings4. How to Apply for a Council Tax Reduction or Discount
Step 1: Check Eligibility
Visit your local council's website or use our eligibility checker to quickly determine if you qualify for Council Tax Reduction.
Step 2: Gather Evidence
Typical documents needed:
- Proof of income and benefits
- Bank statements
- Medical certificates (for SMI/disability)
- Council Tax reference number
- Identity documents
Step 3: Submit Your Application
Each council has its own online form or paper form. Some allow backdating if you explain why you didn't apply earlier.
Apply via GOV.UK5. Can You Combine Discounts?
Yes! Many people combine discounts and reductions, for example:
- A single person on low income may get 25% off plus a means-tested reduction
- A home adapted for disability might qualify for band reduction + income-based CTR
Budgeting Tip:
Ask to Pay Over 12 Months. By default, Council Tax is paid over 10 months—leaving you with 2 "break" months. But you can request a 12-month schedule to spread payments more evenly and ease monthly budgeting pressure.
6. Warning: Don't Miss a Council Tax Payment
Unlike credit cards or loans, if you miss just one payment, your local authority can demand the full year's bill within 7 days. If unpaid, they can:
- Obtain a court liability order
- Send bailiffs
- Deduct from your benefits or wages
If you're in trouble, don't ignore it—seek free advice via:
7. Frequently Asked Questions
Can I get CTR if I'm a student?
Full-time students are normally exempt, but if you live with non-students, the household may still owe something. Use our eligibility checker to confirm your student status.
What if I host a Ukrainian refugee?
They're disregarded for Council Tax, so your discount won't be affected.
How long can I claim CTR for?
As long as you remain eligible. If your circumstances change, you must inform your council.
Final Thoughts: Act Now to Cut Your Bill
Every year, millions miss out on Council Tax help because they don't realise they qualify. With discounts and reductions worth £100s–£1,000s per year, it's crucial to check your status.
Don't wait. Check your eligibility and apply today.
Ready to Check Your Eligibility?
Take our 2-minute quiz to see if you qualify for Council Tax Reduction