Some people may be eligible for a council tax reduction – here’s how to check if you qualify and how to claim.
Brits should check whether they’re eligible for a council tax discount. If you meet certain criteria, you may be entitled to a reduction on your payments.
Council tax is determined by your local authority and finances services such as refuse collection and highway maintenance. The amount you’re liable for depends on your property’s valuation band and the council district where you live.
However, not every household is required to pay the full sum. Citizens Advice explains that certain people are eligible for what is termed council tax reduction (CTR).
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 crucial to understand that if you’re granted CTR, you won’t usually receive a direct payment. Instead, the council will lower the council tax amount you need to pay.
Council Tax Reduction (CTR) is split into two groups – working age and State Pension age – with eligibility for the former varying according to your local authority.
To determine whether you’re eligible for a reduction, you should get in touch with your local council directly. However, according to Citizens Advice, you may qualify for CTR if you’re liable for the council tax bill and receive any of the following three benefit types:
- Guarantee credit as part of Pension Credit, either on its own or with savings credit (if neither you nor your partner receives Pension Credit, the local council will assess your income, savings and capital to determine if you’re entitled to a CTR)
- Universal Credit
- Income Support, income-based Jobseeker’s Allowance, or income-related Employment Support Allowance, which entitles you to maximum council tax reduction minus any non-dependent deduction
If you live with another adult who isn’t your partner, your maximum council tax reduction might be lowered, as they’re expected to contribute towards the bill – this is known as a ‘non-dependent deduction’. Even if you don’t claim these benefits, you can still apply for CTR as long as you have a low income and less than £16,000 in capital.
Furthermore, you could be eligible for a 25 per cent discount on your council tax bill if you:
- Live alone
- Or, everyone else in your home is “disregarded”
Certain people are classified as “disregarded” and are therefore exempt from paying council tax, including: those under 18, apprentices, full-time students at college or university, student nurses, foreign language assistants registered with the British Council, those who are severely mentally impaired, live-in carers looking after someone who is not their partner, spouse, or child under 18, or diplomats – all of whom may qualify for an exemption.
For more information, visit gov.uk/council-tax/who-has-to-pay or get in touch with your local council directly.
