Thousands of households across the UK could be in line for significant savings on their council tax bills, depending on the benefits they receive.
Which Benefits Qualify for a Council Tax Reduction?
According to guidance from Citizens Advice, you might be eligible for a Council Tax Reduction (CTR) if you are responsible for paying the bill and you also receive one of the following five benefits from the Department for Work and Pensions (DWP):
- Guarantee Credit as part of Pension Credit (either on its own or with Savings Credit)
- Universal Credit
- Income Support
- Income-based Jobseeker's Allowance
- Income-related Employment and Support Allowance
For those on the latter three benefits, Citizens Advice notes you could qualify for the maximum council tax reduction, though this amount may be decreased by what is known as a 'non-dependent deduction'.
How Does the Council Tax Reduction Work?
Council tax is a charge set by your local authority to fund essential services in your area, such as waste collection, road maintenance, and local libraries. The amount you pay is typically based on the valuation band of your property and the specific rates set by your council.
However, not everyone has to pay the full amount. The CTR scheme is a support mechanism designed for people on a low income or those who claim qualifying benefits.
"If you're on a low income you might be able to get your council tax reduced," explains Citizens Advice. "If you get benefits or have other people living with you, this might affect how much your council tax is reduced by."
How to Apply for a Council Tax Discount
The process for applying is straightforward, but the responsibility lies with the resident. You must contact your local council directly to start an application.
Your local authority will ask for details about your income and personal circumstances to assess your eligibility. Based on this information, they will calculate your entitlement and issue a new council tax bill showing the reduced amount you need to pay.
It is important to note that if there are other adults aged 18 or over living in your household, they may also be responsible for the council tax. In such cases, only one person needs to apply for the CTR on behalf of the household.
Given that council tax rules and support schemes can vary between different local authorities, it is highly advisable to check with your own council to determine if you can obtain a reduction on your payments.
