Council Tax Reduction is a discount your local council gives if you're on a low income or claim benefits, and GOV.UK says it can cut your bill by up to 100%, as of Nov 2026. You apply to your own council, because each one runs its own scheme, and you can apply whether you own, rent, work or are unemployed.
Council Tax Reduction used to be called Council Tax Benefit, and some councils call it Council Tax Support. Whatever the name, it's separate from the discounts everyone talks about, such as the single person discount, and you can be eligible for both. Here's how GOV.UK explains each one, and where the rules change from council to council.
What decides how much you get
GOV.UK's Apply for Council Tax Reduction page says what you get depends on:
- where you live, because each council runs its own scheme
- your circumstances, for example income, number of children, benefits and residency status
- your household income, which includes savings, pensions and your partner's income
- whether your children live with you
- whether other adults live with you
That first point is the big one. There's no single national rate, so a neighbour in the next council area can get a different result on the same income. Northern Ireland runs a different scheme altogether.
How to apply to your council
- Go to GOV.UK's Apply for Council Tax Reduction page and enter your postcode to find your local council.
- Read your council's scheme rules, since it sets its own.
- Apply to the council with details of your income, savings, benefits and who's in your household.
- Apply separately for any discount or exemption you think you qualify for. GOV.UK says you need to apply for these, even if you're disregarded.
How your bill is worked out
GOV.UK's How Council Tax works guide says you need to know 3 things: the valuation band for your home, how much your local council charges for that band, and whether you can get a discount or exemption from the full bill. If you think your home is in the wrong band, you can challenge it.
Your band can change in some circumstances, for example if you demolish part of your property and don't rebuild it, split a property into self-contained flats, start or stop working from home, or a similar property nearby has its band changed. Ask the Valuation Office if you want to know whether changes to your property will affect your band.
The single person discount and who is disregarded
Here's the rule behind the discount most people search for. GOV.UK's How Council Tax works guide says a full bill is based on at least 2 adults in a home. Some people aren't counted, or are disregarded, and that's what triggers a discount:
| Your household | Discount GOV.UK lists |
|---|---|
| You pay Council Tax and live on your own | 25% off |
| You pay Council Tax and everyone else in your home is disregarded | 25% off |
| Everyone in your household is disregarded | 50% off |
| Everyone is a full-time student | No Council Tax to pay |
You're disregarded if, among other things, you're under 18, 18 or 19 and in full-time education, a full-time student at college or university, a student nurse, on certain apprentice schemes, a live-in carer for someone who isn't your partner, spouse or child under 18, severely mentally impaired, a foreign language assistant registered with the British Council, or a diplomat. Apprentices need a declaration from their employer that they won't be paid more than 195 pounds a week and that the training leads to an accredited qualification.
If you get a discount by mistake, contact your council. If you don't, you could get a fine, and the council may ask you to pay the discount back. Spouses and partners who live together are jointly responsible for the bill.
Students and disabled residents
To count as a full-time student, your course must last at least 1 year and involve at least 21 hours of study a week. If you're under 20 and studying for a qualification up to A level, it must last at least 3 months and involve at least 12 hours a week. If there's a non-student in the household, you'll get a bill, but you might still qualify for a discount.
Under the Disabled Band Reduction Scheme, if you live in a larger property than you'd need if you or another occupant weren't disabled, your bill drops to the next lowest band, for example from Band D to Band C. If you're already in Band A, you get a 17% discount instead. You'll need to show an extra bathroom, kitchen or other room needed for the disabled person, or extra space for using a wheelchair, and the property must be the main home of at least 1 disabled person, adult or child.
Where someone is severely mentally impaired, there's a 100% discount if they live alone or every other adult is also severely mentally impaired or a full-time student, and 50% if everyone else is disregarded. If you live with someone who qualifies and there are no other adults, or everyone else is disregarded, you'll get 25% off. You'll need a certificate from a medical professional such as your GP, and proof of eligibility for certain benefits.
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Second homes and empty properties
You'll usually pay Council Tax on a second home or an empty one, and any discount is up to your council. Councils can charge up to 2 times your normal Council Tax on a second home, and an empty home premium once a property has been empty for at least one year, rising to up to 4 times the normal bill after 10 years. Some homes don't get a bill while they stay empty, including those of someone in prison (except for not paying a fine or Council Tax), someone who's moved into a care home or hospital, and repossessed homes. If you're selling for an owner who's died, there's no Council Tax until probate while the property stays empty, and possibly an exemption for 6 months after.
Every pound you claim back is worth tracking. These money saving apps for the UK help you keep an eye on bills, and there are more ideas in these money saving tips that work.
My advice on claiming every discount
Apply for Council Tax Reduction and check the discounts at the same time, because they're separate and you can qualify for both. Start with GOV.UK's Apply for Council Tax Reduction page to find your council, then read How Council Tax works to see if anyone in your home is disregarded. Each discount needs its own application, so don't assume your council will add it for you.
Frequently asked questions
What is Council Tax Reduction?
A discount from your local council if you're on a low income or claim benefits. GOV.UK says your bill could be reduced by up to 100%.
Who can apply for Council Tax Reduction?
Anyone on a low income or claiming benefits can apply, whether they own their home, rent, are unemployed or are working.
Is Council Tax Reduction the same everywhere?
No. Each council runs its own scheme, and Northern Ireland has a different scheme.
How much is the single person discount?
25% off your bill if you pay Council Tax and live on your own, or everyone else in your home is disregarded.
Do students pay Council Tax?
Households where everyone is a full-time student don't have to pay. If you get a bill, you can apply for an exemption.
What is the Disabled Band Reduction Scheme?
If your home is larger because of a disability, your bill drops to the next lowest band, or you get a 17% discount if you're already in Band A.
