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Council Tax discounts

Many are entitled to discounts that can help save £1,000s

Kit Sproson | Edited by Ben Slater

Updated 26 November 2024

Many people are eligible for a Council Tax discount or reduction of between 25% and 100%, saving £100s or even £1,000s each year. Those living alone or only with children, students, those with a carer or a specific medical diagnosis – as well as people on low incomes and even those with empty properties are among those who could cut their bill. Read on to see who's eligible, how much you might save, and how to apply.

Who can get money off their Council Tax bill?

There are all sorts of reasons you might qualify for a lower Council Tax bill, and these can be broadly separated into three categories:

Discounts based on who you live with
Discounts for those on a low income or receiving certain benefits
Discounts and reductions based on the type of property you live in.

Watch Martin's three-minute Council Tax discounts briefing

Before reading the full detail below, first watch MoneySavingExpert.com founder Martin Lewis's three-minute introductory video on Council Tax discounts and why many households could be missing out on discounts worth £100s, or possibly £1,000s, every year.

Embedded YouTube Video

This clip has been taken from The Martin Lewis Money Show Live on Tuesday 16 January 2024, with the permission of ITV Studios. All rights reserved. Full episode on the ITVX Hub.

Council Tax discounts based on who you live with

First, we're focusing on discounts based on who you live with. In brief, the amount of Council Tax you pay depends on the number of 'qualifying adults':

TWO or more qualifying adults in a household – means that no discount applies, and the full Council Tax is due.
ONE qualifying adult in a household – means that a single-person discount applies, equivalent to 25% off the Council Tax bill.
NO qualifying adults in a household – results in either a discount of 50% or a 100% exemption, depending on exactly who lives in the property. Though note that having no qualifying adults is not the same as when a property is unoccupied.

Below we explain in a bit more detail who counts as a qualifying adult and who doesn't. But to give you an idea we've summarised the potential household set-ups that might get you a discount in this graphic. The main types of people are:

Qualifying adults
Students
SMI adults – those diagnosed with a 'severe mental impairment'
Live-in carers

Who is 'disregarded' for Council Tax?

As mentioned above, certain people don't qualify to pay Council Tax, meaning they are 'disregarded'. These include:

Children. You won't be considered for Council Tax purposes until you turn 18.
Full-time students. To count as a full-time student, your course must last at least a year and involve at least 21 study hours a week. Full-time student nurses can normally claim this discount too (and some councils also let part-time student nurses apply as well).

Certain apprenticeship schemes also count, as does getting funding from the Education and Skills Funding Agency (if you're under 25) and foreign language assistants registered with the British Council.
Adults considered to be 'severely mentally impaired' (SMI). This could include those who have Alzheimer's, Parkinson's, profound learning difficulties, multiple sclerosis or who have had a severe stroke.

To qualify, you’ll need to be both medically certified as having an SMI, and be receiving at least one of a number of benefits (in Scotland, being eligible for the benefit even if you don't actually claim it is sometimes enough).

We've got a whole guide on claiming the 'severely mentally impaired' Council Tax discount, so it's best to read that if this is how you or your household qualify.
Live-in carers. Live-in carers are disregarded if they look after someone with a disability who isn't their partner, spouse or child under 18, for an average of at least 35 hours a week – looking after a mother, father, brother, sister, niece, nephew, friend, uncle or aunt DOES count. The person cared for must be getting one of the following benefits:

- Attendance allowance.
- Middle or higher rate of the care component of disability living allowance.
- Standard or enhanced rate of the daily living component of personal independence payment.
- An increase in constant attendance allowance.
- An increase in disablement pension.

As a live-in carer you do NOT need to be receiving carer's allowance to qualify for this Council Tax discount. More than one person in a household can qualify as a live-in carer, so long as each fits the qualifying criteria above.
Ukrainian refugees. If you host a Ukrainian refugee in your home as part of the Homes for Ukraine scheme, it won't affect any discounts or reductions you're already entitled to.

Where you don't fall into any of the categories above, you will be classified as a qualifying adult for Council Tax purposes. Yet if you are the only qualifying adult in the household, you will be eligible for a single person discount, which is a 25% discount off your bill.

If you are eligible for a discount, you'll need to apply to get it.

Watch Martin's original Council Tax discounts briefing

Martin explains how Council Tax discounts work:

Embedded YouTube Video
Can I get the single person's council tax discount if I let my spare room?

This all depends on whether the person in your spare room has their 'sole' or 'main' residence at your home.

If you're periodically letting out a room on the likes of Airbnb for a few days or weeks at a time, then it's unlikely such people are going to have their sole or main residence at your home. In which case, you should still qualify for the single person's discount.

But if you're letting the room on a more long-term basis – for example, you've signed a contract with a tenant or the person has redirected mail to your address – then it's likely their main residence is considered to be at your property. In this scenario, you shouldn't really be claiming the single person's council tax discount.

On a low income? You could be one of two million missing out on a council tax reduction

You might also qualify for a Council Tax reduction if you have a low household income. Unlike the discounts mentioned above (which apply regardless of where you live), each council operates its own reduction scheme – meaning the size of any reduction and the qualifying criteria vary by local authority.

More than TWO MILLION people are thought to be missing out on this type of Council Tax support. This could be because even if you're eligible – maybe because you qualify for specific benefits or pension credit – you won't get the reduction automatically. You'll need to APPLY.

You're on a low income and/or benefits

If you're on a low income or claim benefits, such as universal credit, your household may qualify for a Council Tax reduction – which can be as much as 100%.

To get a Council Tax reduction it doesn't matter if you own your own home or rent, or whether you're employed or not. What you get depends on:

Where you live
Your circumstances (such as income, number of children, benefits, residency status)
Your income, including savings, pensions and your partner's income
If any children or other adults live with you.

When working out your income, councils in England can partly or fully disregard things like child maintenance, fostering payments and charity contributions – see your council's website for its full list. Disregarded income should also include any payments you get in relation to Windrush (such as the Windrush Compensation Scheme) and historic child sexual abuse.

Some MoneySavers have told us they've been able to get the 25% single person discount in addition to a low-income reduction.

Remember, if you're eligible you need to apply – it's not automatic.

You're receiving pension credit

If you or your partner are getting the 'guaranteed' part of pension credit, your household could be eligible for a full reduction on your Council Tax bill of up to 100%.

If you get the 'savings' part of pension credit, then you might also be eligible for a reduction, though this won't be a full reduction – how much you'll get will depend on how much you have in savings. And if you live with any adults who aren't dependent on you, then the reduction might also be less.

Again, if you're eligible you'll need to apply for the Council Tax reduction (it's not something you get automatically just because you receive pension credit).

Martin: Two MILLION people missing out on council tax reductions

Embedded YouTube Video

This clip is from The Martin Lewis Money Show Live on Tuesday 12 November 2024, permission of ITV Studios. All rights reserved. Full episode on the ITVX Hub.

Council tax discounts based on your property

Some people can get a discount or reduction off their Council Tax bill because of the property itself. If you are eligible for a discount, you'll need to apply to get it.

Properties adapted for a disabled person – drop a band

Council tax bill.

If your home has been adapted for a disabled person, and you can demonstrate this, you’ll drop a Council Tax band. Where your property is already in band A (the lowest Council Tax band) and you qualify for this discount, your Council Tax bill will be reduced by 17% instead.

The types of adaptations could include:

An extra bathroom or kitchen for a disabled person to use.
A room that's 'predominantly' used by a disabled person. For example, this could be a downstairs room in a two-storey house that has been turned into an accessible bedroom. Or a room that has been adapted specifically for a disabled person to use.
The creation of sufficient floor space to make the home accessible for someone who uses a wheelchair.

After you mentioned disability rates relief I emailed my local council, and they sent me a form to complete. Three weeks later I was informed that my band had been reduced from E to a D, saving me over £400/yr going forward. Not only that, the discount was backdated to the time I came out of rehab following an above-the-knee leg amputation, meaning an extra pay-out of £1,500. Thank you so very much, I wouldn't have known about this reduction otherwise.

John, via email

Properties being renovated to make them liveable – possible 100% exemption

For unoccupied properties which are undergoing MAJOR repair work or structural alterations to make them habitable, you may be able to claim a Council Tax exemption.

If your property fits the category above, you will be exempt from Council Tax for up to 12 months.

Properties that are empty

There are some instances where you don't have to pay any Council Tax on an empty home. These include:

- You're a long-term resident of a care home or hospital. Here you don't need to pay any Council Tax on your home, unless you're only in hospital or a home for a short time – recovering from an accident, for example – in which case you'll need to pay Council Tax as normal.

- You're in prison. If the property's now empty, you do not need to pay Council Tax on it (unless you're in prison for not paying Council Tax).

- The owner of the property has died. If the home's empty, it's exempt from Council Tax until someone new moves in, or probate is granted. If probate has been granted and the home is still empty and hasn't been sold, it will be exempt from Council Tax for a further six months. If it's still empty and unsold after six months, the executor will be responsible for paying Council Tax from the estate.

If you've inherited a house from someone who's died, you're responsible for paying Council Tax once the transfer has been completed.

How much Council Tax do I pay on an empty property that isn't exempt?

If your empty home isn't exempt, you will have to pay Council Tax. Depending on the reason the property is empty, your council might still offer a discount – check with your local authority what its rules are.

In England, Scotland and Wales, if your home's been empty for 12 months or more, be aware local authorities have the power to charge a Council Tax premium. This premium is often worth an extra 100% – potentially doubling the Council Tax bill charged on long-term empty properties (some councils can charge an even higher premium than this).

This measure is designed to curb the number of empty properties.
What if I'm in the armed forces and stationed away from home?

If you're in the armed forces and stationed away, you won't be charged extra Council Tax, but will need to pay the normal amount.

Properties with an annexe

If your home has an annexe (informally known as a 'granny annexe') or similar extension, you might get a discount provided it's in use as a residence or used by the main homeowner.

An annexe is typically described as a self-contained and separate living area from your main home, though your council will have to decide whether or not it qualifies as an annexe.

If you qualify as having an annexe, you will receive two Council Tax bills – one for the annexe and a separate one for the rest of your home. You're entitled to a discount of 50% on the annexe's Council Tax bill, but you'll still pay Council Tax as normal on the main house.

Properties that are second homes but not usually lived in

If you have to live in a second property for your job, for example, you live there during the week, or own a holiday home, some councils will give you a discount. This does not include buy-to-let properties.

Councils can give a discount of up to 50%, but it's up to the council to decide both if it'll offer the discount in the first place and how much it will be.

You MUST apply for council tax discounts

As mentioned above, discounts and reductions can be worth £100s off your Council Tax bill each month. You might even be able to backdate too, though councils set their own rules regarding backdating – so if they do allow it, you'll normally need to explain why you hadn't claimed before.

However, the important thing to remember if you believe you're eligible for a discount or reduction is that YOU MUST APPLY as it won't happen automatically.

Those in England / Wales. Visit the Gov.uk to find your council's details.
Those in Scotland. Visit the Mygov.scot website to find your council's details.

Depending on what kind of discount or reduction you are applying for, you'll likely be asked to provide evidence to support your claim. For example, if you're claiming a reduction based on having a low household income, you might be asked to provide evidence of your identity, rent or mortgage payments, income and savings.

Where your application is successful but your circumstances later change, do inform your local council as it may mean you're no longer eligible for a reduced bill.

Council tax budgeting

Many people have complained to us that Council Tax is paid over 10 months rather than 12, making monthly budgeting difficult (as you pay monthly for 10 months, then get a two-month holiday). Yet all councils in England must allow you to pay your Council Tax over 12 months.

However, we've heard there are worries that as it may impact their cash flow, some councils may not be very loud in telling people about this option. If you want to change how you pay, it's safest to contact it yourself.

How do I do this? If you live in England, contact your council and tell it you want to change to the new payment schedule. Make sure to check your new bill when it arrives to see that the schedule has definitely changed.

In Wales and Scotland, while paying over 10 months is also normally the default, many councils do offer the option to pay over 12 months (sometimes this is limited to those who pay via direct debit). Contact your local council if you're considering switching to a 12-monthly payment plan and it can clarify whether this is an option.

Warning – missing a council tax payment can have serious repercussions

Missing a council tax payment can have disastrous consequences for your finances – so do your best not to miss one.

Within three weeks of missing just one council tax payment, councils can ask you to pay your full ANNUAL bill within just seven days. Fail to do this, and the council can apply to take your case to court and ask for a 'liability order' – a letter that lets them take more aggressive forms of debt collection, such as sending in bailiffs.

In stark contrast, a credit card firm is required by regulation to go through more steps to engage people about a missed payment before demanding full repayment (and this process typically takes three to six months). Credit card firms are also required to offer a much wider range of support and repayment options.

As a result, Martin is calling for a change to the system. Watch Martin on his soap-box after hearing from someone whose finances were wrecked in this way:

Embedded YouTube Video

This clip is from The Martin Lewis Money Show Live on Tuesday 12 November 2024, permission of ITV Studios. All rights reserved. Full episode on the ITVX Hub.

If you're struggling with debt or find making repayments on-time difficult, see our Debt help guide for support.

Quick question:

Who is responsible for paying Council Tax?
This section on liability is only for those living in England.

Working out who, technically, is legally responsible for paying a household's Council Tax bill is more complicated than you might think – as we discovered when trying to answer this question.

For many households this likely won't be an issue as – regardless of the legal technicalities – you simply split the bill evenly between the adult occupants (or some variation on this). The intention of this chapter isn't to mess with that practical arrangement.

Rather, in the event there's a disagreement about who should be paying (or maybe you're just curious to know), there is a method to determine who should be footing the bill...

Familiarise yourself with the Council Tax 'hierarchy of liability'

Buried deep within the Local Government Finance Act 1992 is a section on Council Tax liability, which sets out who in a household is legally responsible for paying.

Known as the 'hierarchy of liability', this section specifies six kinds of person, each occupying a certain rung on the hierarchy. Where someone fits the criteria specified by the first rung, they will normally be responsible for paying the Council Tax bill.

If nobody is classified as fitting the first rung of liability, then responsibility passes to anybody on the second rung. Where nobody sits on the second rung, responsibility moves to anybody on the third rung, and so on.

The hierarchy of liability is as follows:

Resident with a freehold interest

Resident with a leasehold interest

Resident with a statutory or secured tenancy

Resident with a contractual licence to live in the property

Resident

Owner of the property

For the purposes of Council Tax, a 'resident' is defined as somebody who is at least 18 years of age, and has his or her 'sole or main residence' in the relevant property.

Where two or more people occupy the same rung – for example, a household that consists of a couple who are both named on the tenancy agreement – responsibility for paying the bill is divided equally between them. This is known as being 'jointly and severally liable'.

Joint and several liability also applies to married and civil partner couples (and couples living together as if they were married or civil partnered) where one of the people is on a higher rung of the hierarchy than their partner.

There are some exceptions to the hierarchy

To add further complication to working out who's responsible for paying the Council Tax bill, there are some exceptions to the hierarchy of liability to consider. In brief:

Some households are exempt from paying Council Tax in the first place (meaning the hierarchy of liability is not applicable). This includes households which contain only full-time students or only people with SMIs – or a combination of both.

There's also an exception to the joint and several liability rule:

Joint liability doesn't apply to full-time students and people with SMIs. This means where a household is mixed, and includes at least one person who is a full-time student or somebody with an SMI, as well as another adult (or adults) who are on the same rung of liability, joint liability won't apply as per normal. In such a scenario, the student / person with an SMI would not be legally responsible for paying Council Tax, and the bill's liability would be jointly split between the remaining occupant or occupants.
Examples of Council Tax hierarchy in practice

As you might've gathered, working out who's legally liable to pay Council Tax can be complicated. To help, we've come up with nine different scenarios, split between three groups.
Households containing students

Scenario 1

Two tenants live in a flat they rent from a landlord. One of the tenants is a full-time student, the other a non-student.

Does the household get a discount? The household could qualify for a 25% single person discount off the total bill, as the full-time student is disregarded for Council Tax purposes.

Who's liable to pay the bill? While both occupants are on the same rung of liability (both named on a tenancy agreement), joint liability doesn't apply to students. This means the non-student is legally liable to pay the (reduced) bill.

Scenario 2

Three adults, one of whom is a full-time student, live in a house. The student owns the house (on a freehold basis), while the two non-students are named on a tenancy agreement.

Does the household get a discount? There is no discount in this case, as the full Council Tax bill applies where two or more adults (who don't otherwise qualify for a discount) live in a property.

Who's liable to pay the bill? In this case, the student is liable to foot the bill. That's because the student is the owner of the property (technically 'a resident with a freehold interest'), a higher rung on the hierarchy than the two tenants.

Scenario 3

Four adults, where two are full-time students and two qualify for the SMI discount, are tenants in a house. The landlord who owns the property lives elsewhere.

Does the household get a discount? The property pays no Council Tax at all. That's because all-student / all-SMI households (or a combination of both) are exempt from Council Tax.

Who's liable to pay the bill? The hierarchy of liability doesn't apply in this scenario, as no Council Tax is charged in the first place.

Households where someone is cared for

Scenario 1

Married couple, John and Jenny, jointly own their leasehold house. They live with their 17-year-old daughter, Anna, and 23-year-old son, Grant, who qualifies for the SMI discount. Jenny spends 35 hours a week caring for Grant (so technically is his live-in carer).

Does the household get a discount? The property gets a 25% discount off the total bill. That's because:

- Anna is not considered for Council Tax purposes until she turns 18
- Grant is disregarded for Council Tax purposes because he qualifies for the SMI discount
- Jenny is disregarded for Council Tax purposes because she qualifies as a live-in carer.

Essentially this means that there's only one adult, John, taken into consideration for the purpose of the Council Tax bill, so only 75% of the Council Tax bill applies.

Who's liable to pay the bill? As John and Jenny jointly own the property they live in (technically they're both 'resident with a leasehold interest'), they're on the same rung of hierarchy and liability for paying the discounted Council Tax bill is split jointly between them.

Scenario 2

Louise, 45, lives with her elderly disabled mother (the disability is not an SMI). Louise owns the property freehold, and provides care for her mother for 40 hours a week, while her mother receives a qualifying benefit.

Does the household get a discount? The property gets a 25% discount off the total bill. That's because Louise, who qualifies as a live-in carer, is disregarded for Council Tax purposes. This means there's only considered to be one adult in the property for Council Tax purposes – Louise's mum.

Who's liable to pay the bill? As Louise is the owner of the freehold property (technically 'resident with a freehold interest'), she is on a higher rung of hierarchy than her mother (presumably 'resident' or tenant of some kind). Therefore, Louise is liable to pay the discounted Council Tax bill herself.

Scenario 3

Matthew, who qualifies for an SMI discount, lives in his own home. Through Matthew's son, Sean, who has lasting powers of attorney, Sarah (Matthew's niece) has agreed to care for Matthew, and she has entered a contract for her to live in Matthew's home as a lodger with full board as well as expenses paid, in exchange for her providing Matthew with 40+ hours of personal care a week (technically she'll be a live-in carer, not a paid care worker).

Does the household get a discount? A 50% discount applies here as there are considered to be no adults in the property for the purposes of Council Tax (Matthew is disregarded because he qualifies for an SMI discount, Sarah is disregarded because she qualifies for a live-in carer discount). The property doesn't get the whole bill wiped, however, as the property is not considered to be exempt from Council Tax (only properties that only contain full-time students or only people with SMIs – or a mixture of both – can be exempt).

Who's liable to pay the bill? As Matthew is on a higher rung of the hierarchy (resident with a freehold / leasehold interest) – a higher run than Sarah – Matthews is legally liable to pay the discounted Council Tax bill. Sean, as Matthew's power of attorney, will assume responsibility for paying the bill.

Scenario 4

Patrick owns his house and has a disability for which he receives a qualifying benefit (his disability is not an SMI). He lives with his two adult children, Rosie and Stuart. Rosie spends 40 hours a week caring for Patrick, but Stuart doesn't.

Does the household get a discount? In this case, the household is not due any discount and the full bill is due. That's because, while Rosie is disregarded for Council Tax purposes (as she qualifies as a live-in carer), there are two other adults in the property – Stuart and Patrick – who aren't disregarded as they don't qualify for any discount.

Who's liable to pay the bill? As Patrick is the owner of the property and on a higher rung of liability than his children (presumably some form of lesser 'resident'), Patrick is liable to pay the bill himself.

Households on low incomes

Scenario 1

Joanna rents her council house that she lives in with her three young children. She is unemployed and claims benefits. Her partner, Greg, moved in recently. He pays rent, but isn't an official tenant. He's also unemployed and claims benefits.

Does the household get a discount? The household could be due a reduction of up to 100% off the bill, as both Joanna and Greg have low/no incomes. How big a discount they get will depend on the council.

Who's liable to pay the bill? As Joanna is on the tenancy agreement but Greg isn't, she is on a higher rung of the hierarchy. However, for Council Tax purposes, joint and several liability applies where a couple are living together as if married – even if one is on a higher rung of the hierarchy. This means that liability for the bill will be split between Joanna and Greg, unless, of course, a 100% discount is awarded, in which case there's no Council Tax to pay anyway.

Scenario 2

Carole owns her house and is recently retired. She's got plenty of savings, and to supplement her income, has three working adult lodgers who all pay rent.

Does the household get a discount? In this case the full Council Tax bill is due as there are four adults in the property considered for Council Tax purposes, none of whom is eligible for a discount.

Who's liable to pay the bill? As owner of the property, Carole is on a higher rung of the hierarchy than the three lodgers. She is therefore legally liable to pay the full Council Tax bill herself.

Other MSE Council Tax guides...

Check your Council Tax band: Are you paying too much?
Reclaim overpayments if you've moved since 1993.
'Severely mentally impaired' discount: Check if you qualify.

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