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Could you be paying less council tax?

If you’re currently paying council tax for your home in England, depending on your circumstances you may be able to receive a discount or not pay it at all.

You may be able to get:

  • A discount, for example, for single-person occupancy or for an empty property
  • Council Tax Reduction (CTR) if you’re a low-income household
  • Other reductions dependent on your circumstances

If you think you might be eligible for a discount or a reduction, it won’t happen automatically, so you’ll need to make sure you apply. It would be a good idea to also check you’re on the correct council tax banding. You can challenge your banding if you think it’s incorrect.

Guidance is different if you live in Scotland or Wales.

Council Tax discounts

If you’re the only adult in the household, you can receive a 25% discount on your council tax bill.

Some people in a household aren’t counted for in the council tax bill, including anyone under 18, students, people with learning difficulties or anyone who has a severe mental impairment. If everyone in the household meets this criteria, there’ll still be a council tax bill, but it will have a 50% discount. You don’t pay council tax if everyone in your household is a student or severely mentally impaired.

If you or your partner are receiving the 'guaranteed' part of Pension Credit, you may be eligible for a full reduction on your council tax bill, up to 100%. 

A 'second adult rebate’ discount may be available if an adult you live with is on a low income or receiving certain benefits.

If someone moves out of your household and this entitles you to a discount, you need to tell the council. Even if you tell the council after the moving out date, you’re entitled to the discount from the moving date.

If you own another home

Your local council may give you a discount if you have another home that you don’t live in, such as one that needs repair work or is empty. If your property is unoccupied and undergoing major repair work or structural alterations to make it habitable, then you may be exempt from paying council tax for up to 12 months.

If you have a holiday or second home, you may qualify for a 50% discount if it’s owned by someone who can’t live there due to needing to be in another location for work.

If you have an annexe connected to your home, you’ll receive a 50% discount if it’s used by people who live in the main household or immediate family members. If you have a dependant family member who lives there, you don’t need to pay council tax on the property. They must be over 65 years old or have a physical or mental disability. If the annexe is empty, you don’t need to pay council tax for it.

If you live with a disabled individual

If you or someone you live with is disabled, your council will charge you the rate for the next lowest council tax band. For example, if your house is in band D, you will be charged for band C instead.

You must evidence that your home is adapted for a disabled individual and that the individual lives there. For example, there is an extra bathroom or kitchen to meet their needs, and there is enough space for a wheelchair.

Council Tax Reduction (CTR)

Low-income households may be able to receive a council tax reduction. If you receive benefits or have other people living in the home with you, this may affect the amount your council tax is reduced by.

You’ll have to submit details of your income and circumstances to the council so that they can evaluate if you qualify for CTR. If you’re awarded it, your bill will be reduced accordingly.

Discretionary Reduction

If you’re really struggling to pay your council tax bill and don’t qualify for any of the reductions, you can contact your local council directly about a ‘discretionary reduction’. They will ask for evidence of your circumstances to show that you’re suffering financial hardship and can’t afford your bill, then review on a case-by-case basis.

How you pay can reduce the monthly amount

The total year’s amount will stay the same, but you can choose to split your bill over 12 months instead of the usual ten, which will reduce your monthly cost. If you contact your local council, they will alter your payment schedule. Alternatively, you can choose to pay in full.

Contacting PayPlan

If you are struggling with debts call PayPlan on 0800 072 1206. They're open from 8am–8pm Monday to Friday and 9am–3pm on Saturdays.

Alternatively, visit their website to speak to them via live chat or for more information.