Council Tax Reduction Scheme — Are You Eligible?

Council Tax Reduction: Could You Be Paying Less?

The Council Tax Reduction Scheme (CTRS) — sometimes called Council Tax Support — is a means-tested benefit that can reduce your council tax bill by up to 100%. It replaced the old Council Tax Benefit in 2013, and each council now runs its own version.

An estimated 2 million eligible households are not claiming this reduction. If you're on a low income, it's worth checking.

Who Can Claim?

Pensioners

If you've reached State Pension age, the scheme is nationally consistent:

• You can receive up to 100% reduction
• Your savings must be below £16,000
• Your income is assessed against a "applicable amount" based on your circumstances

Working-Age Adults

For working-age people, each council sets its own rules. Common features include:

• Maximum reduction typically 75-100% of the bill
• Income-tested — the more you earn, the less reduction you get
• Savings threshold usually £6,000-£16,000
• Most schemes require you to pay at least a minimum amount (e.g., 25%)

What Income Is Assessed?

When calculating your reduction, the council considers:

• Earnings from employment or self-employment
• Benefits including Universal Credit, JSA, ESA
• Pensions including State Pension and private pensions
• Tax credits
• Savings and investments above a threshold

Some income is disregarded, such as Disability Living Allowance, Personal Independence Payment, and child benefit.

How to Apply

Step 1: Check Your Council's Scheme

Visit your local council's website and search for "council tax reduction" or "council tax support". Each council has different eligibility criteria and application forms.

Step 2: Gather Your Documents

You'll typically need:

• Proof of income (payslips, benefit letters)
• Bank statements (usually last 2-3 months)
• Proof of identity
• Tenancy agreement or mortgage details
• Details of any savings

Step 3: Apply Online or by Post

Most councils accept online applications. Some also allow you to apply by phone or in person.

Step 4: Keep Your Details Updated

If your income or circumstances change, you must notify the council. Increases in income will reduce your discount; decreases may increase it.

Council Tax Reduction + Other Discounts

You can combine council tax reduction with other discounts:

• Single person discount — applied first, then reduction calculated on the reduced amount
• Disability reduction — can be claimed alongside CTRS
• Band appeal — if your band is reduced, your bill falls further

What Happens If You're on Universal Credit?

Council tax reduction is separate from Universal Credit. UC replaced many benefits but NOT council tax support. You need to apply for CTRS separately with your local council, even if you're already receiving UC.

Many people on Universal Credit are missing out on council tax reduction because they assume it's included. It's not — apply separately.

Don't Forget to Check Your Band Too

If you're struggling with council tax bills, make sure you're also in the correct band. A lower band means a lower bill, regardless of any reductions you receive. Use our free checker to compare your band with neighbours.