Council tax and fines · 4 min read
Council Tax Reduction and discounts: how to cut your bill and arrears
Council Tax Reduction, the 25% single person discount, disregards, exemptions and hardship relief can all cut your council tax. Who qualifies, how to claim and how to ask for backdating.
- Fact-checked
- Against official sources
- Last updated
- Next review due
- April 2027
- Applies to
- England and Wales
- Sources
- 4 listed on this page
Independent guidance, not a government service. This page is general information about the law in England and Wales, not financial or legal advice. Debt solutions have fees, risks and consequences. For free, impartial advice, contact MoneyHelper or a debt charity.
The short answer
If you’re behind on council tax, check that you’re not paying too much first. Council Tax Reduction helps people on low incomes or benefits. The single person discount takes 25% off if you’re the only adult. Disregards, exemptions and the disabled band reduction can cut it further, and councils can give hardship relief. Claim straight away and ask for any award to be backdated.
Council tax arrears in England reached £7.4 billion by March 2026 (MHCLG). Some of that is owed by people who were entitled to help they never claimed. Getting your bill right is often the first step to stopping bailiffs.
Council Tax Reduction (Council Tax Support)
Council Tax Reduction (CTR) reduces your bill if you’re on a low income or receive benefits.
- In England, each council runs its own scheme for working-age people, so the rules and amounts vary. Pensioners are covered by a national scheme.
- In Wales, there’s a national scheme.
You apply to your council, usually online. If you claim Universal Credit, you usually need to apply for CTR separately – it isn’t automatic.
Backdating: if you could have qualified earlier, ask the council to backdate your claim. Councils have their own rules, so explain why you didn’t claim sooner (for example, illness or not knowing about it).
Discounts
| Discount | Who it’s for |
|---|---|
| Single person discount (25%) | You’re the only adult (18 or over) counted as living in the home |
| Disregards | Some people aren’t counted as adults for council tax, such as full-time students, some carers, people with a severe mental impairment and some apprentices |
| Disabled band reduction | Your home has features needed by a disabled person, such as an extra room or bathroom |
| Exemptions | Some properties don’t pay at all, for example where everyone living there is a full-time student |
If someone in your home is disregarded, the council may treat the household as having fewer adults, which can mean a 25% discount even if two people live there.
Hardship relief (section 13A)
Councils have a discretionary power, often called section 13A relief, to reduce council tax for people in exceptional hardship. Ask your council about it and explain your circumstances.
How to claim
- Go to your council’s website and look for “Council Tax Reduction” and “discounts and exemptions”.
- Gather evidence: income, benefits, savings, household members and any disability or care needs.
- Apply for everything that might apply – there’s no harm in asking.
- Ask for backdating and for your arrears to be recalculated.
- Tell the enforcement company if a bailiff is involved, and ask it to pause while the council reviews your bill.
If you already have arrears
A lower bill helps you going forward, but you may still owe arrears. You can:
- offer an affordable payment plan to the council
- ask the council to recall the debt from bailiffs if you’re vulnerable
- get advice about Breathing Space, a DRO or an IVA
Read council tax arrears and bailiffs and can council tax debt be written off?
Frequently asked questions
Do I get Council Tax Reduction automatically with Universal Credit?
Usually not. You need to apply to your council separately.
Can I get the single person discount if I live with my child?
Yes, if your child is under 18. If they’re 18 or over, they count as an adult unless a disregard applies, for example if they’re in full-time education.
Can council tax be reduced if I have a mental health condition?
If someone has a severe mental impairment confirmed by a doctor and qualifies for certain benefits, they may be disregarded or exempt. Ask your council.
Sources
- GOV.UK, Council Tax Reduction
- GOV.UK, Council Tax: discounts and exemptions
- GOV.UK, Council Tax: who has to pay
- MHCLG, Collection rates for council tax, 2025 to 2026
How we wrote this article
- Research: written from primary sources such as legislation.gov.uk, GOV.UK and the Insolvency Service, then fact-checked by a second member of our team. The sources are listed above.
- Checked: last checked on . Next review due April 2027, or sooner if the rules change.
- Scope: applies to England and Wales. If you live in Scotland or Northern Ireland, read our Scotland and Northern Ireland guide. It is general information, not personal advice.
- Independence: we are not a government website or service, and we are not connected to any council, court or enforcement company.
- Money: we may receive a fee if we introduce you to a debt advice firm. This doesn't change what we write. How we're paid.
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