Council Tax Reduction: Complete Guide to Claiming
Council Tax Reduction (CTR), formerly known as Council Tax Benefit, is a discount on your council tax bill administered by your local council. It is means-tested, so eligibility depends on your income, savings, and household circumstances. Some working-age households can receive a reduction of up to 100% — meaning they pay nothing. Pensioners protected by the national minimum scheme receive at least 91% of any excess council tax covered.
Who can claim Council Tax Reduction?
You can apply for CTR if you are responsible for paying council tax and your household income and savings are below your council's threshold. There is no upper income limit in law — your council sets its own scheme — but in practice most schemes exclude households with savings above £6,000–£16,000 (depending on the council) and income above a locally-set maximum.
You are more likely to qualify if you receive:
- Universal Credit
- Income Support
- Jobseeker's Allowance (income-based)
- Employment and Support Allowance (income-related)
- Pension Credit
- A low wage (part-time or minimum wage work)
How much reduction can you receive?
The amount depends on your council's local scheme. Since 2013, working-age CTR has been localised — each council sets its own rules. Pensioners have additional protection: the national scheme ensures the maximum support is higher. Examples:
| Household type | Annual income | Typical reduction |
|---|---|---|
| Single person, no income | £0 | Up to 100% |
| Couple, one on NMW part-time | £10,000 | 50–80% |
| Family, one earner on £18,000 | £18,000 | 20–50% |
| Pensioner on State Pension only | ~£11,502 | Up to 100% |
| Pensioner on Pension Credit | Varies | Up to 100% |
How to apply for Council Tax Reduction
- Contact your local council: Apply directly to the council for the area where you live. Most councils have an online application form.
- Provide documents: You will typically need proof of identity, proof of income (payslips, benefit letters), proof of savings (bank statements), and proof of address.
- If you receive Universal Credit: You must still apply separately to your council for CTR — it is not automatically included in Universal Credit.
- Apply as soon as possible: Reductions are usually applied from the date you apply, not from when you became eligible. Back-dating is rarely available except in exceptional circumstances.
Second adult rebate
If someone lives with you who is not your partner — for example an adult child or a carer — and they have a low income, you may qualify for a Second Adult Rebate. This can provide a discount of up to 25% on your council tax even if your own income would normally make you ineligible. The rebate is based on the second adult's circumstances, not yours.
What if you are refused or given a low reduction?
You have the right to appeal. The process is:
- Ask the council to review its decision
- If still unhappy, appeal to an independent Valuation Tribunal (for decisions about your council tax band) or use the Local Government Ombudsman for complaints about how your application was handled
Frequently asked questions
What is Council Tax Reduction?
CTR is a means-tested discount on your council tax bill, administered by your local council. Depending on your income and household, it can reduce your bill by up to 100%. Apply directly to your council — it is separate from Universal Credit.
Can I get Council Tax Reduction if I work?
Yes. Being in work does not disqualify you. Many councils have working schemes that provide partial reductions based on household income. Apply and let your council calculate the amount.
Does Council Tax Reduction affect other benefits?
No. CTR is a discount, not an income payment, so it does not affect other means-tested benefits like Universal Credit or Housing Benefit.
How long does a CTR application take?
Typically 2–6 weeks. In the meantime, do not stop paying your existing council tax — pay what you currently owe and you will receive a revised bill once the reduction is applied.