Council Tax Reduction (CTR), sometimes still called Council Tax Benefit, is a local government discount for people on low incomes. It can reduce your council tax bill significantly — in some cases to zero. It is separate from Universal Credit and is administered by your local council.
Who can qualify?
Eligibility depends on your local council's scheme, but typically: your income (from all sources), your savings and assets, whether you own or rent, the number of adults in your household, and whether anyone in your household has a disability. Most working-age people on Universal Credit automatically qualify for some CTR — but you still need to apply separately to your council.
What about pensioners?
The Government runs a national scheme for people of State Pension age, which is more generous than most local authority working-age schemes. Pensioners with low income can receive up to 100% CTR in some cases. Income and savings limits apply and are set nationally.
Other council tax discounts
- Single person discount: 25% off if you are the only adult in your home
- Severely Mentally Impaired (SMI) discount: full or partial exemption where someone has a severe mental impairment
- Student exemption: full-time students are disregarded for council tax purposes
- Carer discount: a carer living with the person they care for may be disregarded
- Armed forces discount: certain military accommodation may be exempt
How to apply
Apply directly to your local council. Many councils have online application forms. You will usually need your National Insurance number, details of your income and savings, and your rent or mortgage information. Claims can usually be backdated in certain circumstances — apply as soon as you think you might be eligible.
General guidance only — not regulated financial advice.