There are 4 ways to reduce your Council Tax bill if you have low income and savings:
- Council Tax Support
- Second Adult Rebate
- Discretionary Payments
- Discretionary Relief
Some people may qualify for several forms of discount at the same time, so it’s possible to combine different ways of reducing your Council Tax bill. Your council should explain how to do this on its website.
Council Tax Support
In England, Scotland and Wales, if you receive one of the means-tested benefits below, you’ll probably receive a substantial amount of help with your Council Tax bill:
- Income Support
- Income-based/new-style Jobseeker’s Allowance
- Income-related/new-style Employment and Support Allowance
- High levels of Tax Credits
As your income increases, the level of help you’ll receive with your Council Tax bill decreases.
Each council in England and Wales has its own way of calculating how much help you’ll get towards your bill. It’s best to check with your local council or visit the advicelocal website.
However, in Scotland, there’s one national system to calculate how much help you’ll get. Please contact your local council for details.
Pensioners in England, Scotland and Wales can receive 100% help with their bill if they receive the Guarantee element of Pension Credit or have an income low enough to qualify for this benefit.
For all age groups and locations, the amount you get may be reduced if other adults live in your property, such as grown-up children. This is known as a ‘non-dependent deduction’.
Apply for Council Tax Reduction – GOV.UK (www.gov.uk)
Second Adult Rebate
This is aimed at single people who can’t claim the 25% Council Tax discount given to all people living alone because another adult (who is not their partner) lives at the same address. Not all councils offer this rebate, and some restrict it to pensioners only. To qualify, the other adult must be on a low income and not liable for the Council Tax bill.
There are different levels of help available depending on the benefits the second person receives or how much income they get. You can’t claim Second Adult Rebate at the same time as Council Tax Support.
Apply for Council Tax Reduction – GOV.UK (www.gov.uk)
Discretionary Payments
You might be able to get a Discretionary Payment if you’re finding it difficult to pay your Council Tax bill.
Discretionary Payments are means-tested (they take into account how much income and savings you have). You’ll be asked for a lot of evidence to prove you can’t afford your Council Tax bill.
Discretionary Payments are a short-term solution and can cover up to a year.
Each council has complete discretion (they can decide) on who they offer this support to, and how to offer this support. Each council has its own way of deciding who is given a payment.
If you’ve been refused a Discretionary Payment and think the decision is wrong, you can always ask the council to look at their decision again.
The funding for Discretionary Payments comes from central government.
Apply for Council Tax Reduction – GOV.UK (www.gov.uk)
Discretionary Relief
The 1992 Local Government Finance Act granted local councils the power to locally finance and pay Local Relief for your Council Tax bill if paying the bill is causing you ‘severe financial hardship’.
Each council has complete discretion in how they choose to award this relief, and who they decide to give it to. Most councils don’t offer this help.