The short answer
- Council Tax Reduction can pay up to all of your council tax if you are on a low income or benefits.
- It is claimed from your council, separately from Universal Credit or Pension Credit.
- Pensioners on Pension Credit Guarantee Credit get their whole bill covered.
- Otherwise the reduction falls by 20p for every £1 of weekly income above your applicable amount.
- Working-age people in England often get less than 100%, because many councils cap support.
- It is separate from the single person discount, and you can get both.
What Council Tax Reduction is
Council Tax Reduction replaced Council Tax Benefit in April 2013. It is not paid to you as money: your council takes it off your bill, so you have less to pay in each instalment. If you are entitled to the full amount, you pay nothing.
It is run by councils in England, Wales and Scotland. Northern Ireland has domestic rates instead of council tax, with help through Housing Benefit for rates or rate relief, so it is not covered here.
Which scheme applies to you
- Pensioners in England
- Set by the government
- Everyone in Wales
- Welsh national scheme
- Everyone in Scotland
- Scottish national scheme
- Most you can get
- 100% of the bill
- Working age in England
- Set by each council
- Most you can get
- Often 70% to 100%
- Taper
- Usually 20%, sometimes income bands
- Savings limit
- Often £16,000, sometimes lower
You count as a pensioner if you, or both of you if a couple, have reached State Pension age and you do not get Universal Credit. The calculator uses national rules where they apply, and lets you set your council’s maximum and taper for working-age schemes in England.
How the reduction is worked out
- Weekly bill.Your yearly council tax, after discounts, is turned into a weekly amount: the year’s bill × 7 ÷ 365. A £2,000 bill is £38.36 a week.
- Maximum reduction. The weekly bill (or the share your council allows), less a deduction for each other adult who lives with you.
- Applicable amount. The weekly needs figure for your household, the same as for Housing Benefit.
- Taper. If your weekly income is above the applicable amount, 20% of the difference comes off the maximum.
If you get Pension Credit Guarantee Credit, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance or Income Support, you get the maximum reduction without an income check.
Your applicable amount
| Part | Amount |
|---|---|
| Single pensioner (reached State Pension age from April 2021) | £238.00 |
| Pensioner couple | £363.25 |
| Single, working age, 25 or over | £95.55 |
| Couple, working age | £150.15 |
| Each child | £87.88 |
| Disability premium (working age): single / couple | £44.85 / £64.00 |
| Severe disability premium | £86.05 |
| Carer premium | £48.15 |
Pensioners who reached State Pension age before April 2021 have a higher allowance: £256.00 single or £383.35 for a couple. Scotland and Wales use figures that closely follow these.
Income and savings
Income is counted much as it is for Housing Benefit. State Pension, private pensions, earnings after tax and Carer’s Allowance count. Child Benefit, child maintenance, PIP, DLA and Attendance Allowance are ignored. A small part of earnings is disregarded: £5 for a single person, £10 for a couple, £20 with a disability or carer premium and £25 for a lone parent.
Savings above £10,000 for pensioners (or £6,000 for working age) are treated as giving £1 a week for each £500 (or £250). Over £16,000 you usually get nothing, unless you are on Pension Credit Guarantee Credit.
Other adults in your home
If a grown-up son, daughter or relative lives with you, the council takes a fixed weekly amount off your reduction. For pensioners in England the 2026/27 figures are:
| Their situation | Deduction |
|---|---|
| Not working, or gross income under £279 | £5.20 |
| £279 to £484.99 | £10.60 |
| £485 to £604.99 | £13.30 |
| £605 or more | £15.95 |
| On Pension Credit, or under 25 on Universal Credit without earnings | £0 |
No deductions are made if you or your partner get Attendance Allowance, PIP daily living or DLA care, or are registered blind. Councils’ working-age schemes and the Welsh and Scottish schemes set their own amounts, often similar or lower.
Working-age schemes in England
Since 2013 English councils have designed their own working-age schemes. The most common changes from the pensioner rules are:
- a minimum payment, so everyone pays something: for example the scheme covers at most 75% or 80% of the bill;
- income bands instead of a taper, especially for people on Universal Credit;
- a lower savings limit, such as £6,000 or £10,000;
- a cap based on a lower council tax band, so people in larger homes get help only up to the band B or C bill.
Search for your council’s “council tax support scheme” to find its rules, and set the maximum and taper under More options in the calculator.
Worked examples
- Weekly bill: £1,500 × 7 ÷ 365£28.77
- Income: pensions £301.30 + £4 tariff income£305.30
- Excess over £238.00£67.30
- 20% of the excess−£13.46
- Weekly reduction£15.31
They have £701.84 left to pay for the year.
- Weekly bill£38.36
- Non-dependant deduction−£10.60
- IncomeNot checked
- Applicable amount: £95.55 + £87.88£183.43
- Earnings £200 less £25 disregard£175.00
- Income below the applicable amountNo taper
- In Wales or Scotland: up to 100%£2,000 a year
Universal Credit and Council Tax Reduction
Universal Credit has no council tax element, so you must claim Council Tax Reduction from your council as well. Many councils now use your Universal Credit award and earnings directly, with simple income bands: for example, 100% support if your income is very low, then stepping down to 75%, 50% or 25%.
Because of this, the calculator’s figure for working-age people on Universal Credit is a guide only. Your council’s scheme decides.
Other discounts and exemptions
- Single person discount: 25% off if you are the only adult. See the single person discount calculator.
- Disabled band reduction: your bill is charged one band lower if your home has been adapted for a disabled person.
- Severe mental impairment: people with dementia or a similar condition who get a qualifying benefit are ignored when counting adults, and may be exempt if they live alone.
- Students: homes where everyone is a full-time student are exempt. See the student council tax calculator.
- Carers: some live-in carers are ignored when counting adults.
Second adult rebate
In England, a pensioner whose own income is too high for Council Tax Reduction may still get up to 25% off if another adult on a low income lives with them, such as a grown-up child on benefits. This is called the second adult rebate or alternative maximum reduction. Councils award whichever is higher. It is not included in the calculator, so ask your council if it might apply.
How to claim
- Step 1Apply to your council
Most councils have an online form, often combined with Housing Benefit.
- Step 2Send evidence
Proof of income, savings, identity and who lives with you.
- Step 3New bill
The council sends a revised bill with the reduction taken off.
Claim as soon as your income drops. Pensioners can have a claim backdated by up to 3 months; working-age backdating depends on your council’s scheme. Keep paying the bill you have while you wait, so you do not fall into arrears.
Arrears move fast
If you miss an instalment, the council can ask for the whole year’s bill at once. Contact them early if you are struggling.
If you disagree
Write to your council first and ask it to look again. If you still disagree, you can appeal to the Valuation Tribunal in England, the Valuation Tribunal for Wales, or the Council Tax Reduction Review Panel in Scotland. Appeals are free.
Council tax bands and your bill
Your bill depends on the band your home is in and what your council charges for that band. England and Scotland use bands A to H, based on 1991 values; Wales uses bands A to I, based on 2003 values. Band D is the reference point: band A pays six-ninths of the band D charge and band H pays twice it.
Because Council Tax Reduction is worked out on your actual bill, a higher band means more help if your income is low. Some English councils limit working-age support to the bill for a lower band, so check your scheme if you live in a larger home. You can estimate your bill with our council tax bands calculator.
Think your band is wrong?
You can ask the Valuation Office Agency (England and Wales) or your local assessor (Scotland) to check it. If your band goes down, the council refunds the overpayment, often back to when you moved in.
Extra help in hardship
In England and Wales councils can reduce anyone’s bill further at their discretion under section 13A of the Local Government Finance Act 1992. Many run a hardship fund for people whose Council Tax Reduction does not cover enough, for example after a bereavement, a sudden drop in income or a large bill they cannot pay.
Ask your council for a discretionary or hardship reduction, explaining your circumstances and showing your income and spending. Some councils also give automatic support to care leavers up to age 25, and some protect households with disabled people or young children from their minimum payment.
If you fall behind
- Missed instalmentReminder notice
Pay within 7 days to keep paying by instalments.
- Still unpaidFinal notice
The whole year's bill can become due at once.
- CourtLiability order
Court costs are added, and the council can take money from wages or benefits, or use enforcement agents.
Council tax arrears are a priority debt. If you are struggling, claim Council Tax Reduction straight away, ask the council to spread the bill over 12 months instead of 10, and get free advice from StepChange, Citizens Advice or National Debtline before it reaches court.
Changes you must report
Tell your council straight away if:
- your income, savings or benefits change, including starting or stopping work;
- someone moves in or out, or the income of an adult living with you changes;
- you move home, even within the same council area;
- you go into hospital or a care home for a long stay.
If you are overpaid because you did not report a change, the council adds the overpayment to your bill. If your income goes down, a prompt report can increase your reduction from the date of the change.
Key numbers
| Item | Figure |
|---|---|
| Most a pensioner can get | 100% of the bill |
| Taper (national schemes) | 20% |
| Savings limit (not on Guarantee Credit) | £16,000 |
| Single pensioner applicable amount | £238.00 a week |
| Non-dependant deductions, pensioners in England | £5.20 to £15.95 a week |
| Second adult rebate | Up to 25% |
| Backdating for pensioners | Up to 3 months |