Council Tax Reduction, in plain English
Council Tax Reduction, often shortened to CTR and still called Council Tax Support by some councils, is help towards your council tax bill if you are on a low income or claim certain benefits. It replaced Council Tax Benefit in April 2013. Unlike most benefits, it is not paid to you in cash: your council applies the reduction to your council tax account and sends you a smaller bill. If you qualify for the maximum, the council tax part of your bill can fall to nothing — although, in Scotland, water and sewerage charges on the same bill still have to be paid.
Council Tax Reduction in one paragraph
You apply to your local council, not to the Department for Work and Pensions and not to HM Revenue and Customs. You must be the person liable for the council tax bill, or liable for a share of it, and you must live in the home. Your income and your capital (savings and investments) are assessed. In general, you cannot qualify if you and your partner together have more than £16,000 in capital — unless you receive the guarantee credit part of Pension Credit, in which case you can qualify for the maximum reduction even with higher capital. Pension-age claimants are covered by a national scheme across England, Scotland and Wales. Working-age claimants in England are covered by a scheme set by their own council, so the maximum percentage and the fine detail vary from place to place; Scotland and Wales each run a national scheme for working-age claimants too.
The facts that matter most
| Point | Position |
|---|---|
| Who you apply to | Your local council only |
| How it is paid | As a reduction on your council tax bill, not in cash |
| Capital limit, general rule | £16,000 for you and your partner combined |
| Guarantee credit of Pension Credit | Maximum reduction in most schemes, even above the capital limit |
| Pension-age scheme | National scheme, up to 100% of the council tax charge |
| Working-age scheme, England | Set by each council — maximum percentage varies |
| Working-age scheme, Scotland and Wales | National scheme in each nation |
| Claiming Universal Credit | Does not automatically give you Council Tax Reduction — claim separately |
| Northern Ireland | Different system: domestic rates, not council tax — see the nations page |
An illustrative example, not a rate
Imagine a household in England whose council tax bill, after the single person discount, is £1,800 for the year. If their council's working-age scheme allows a maximum reduction of 80% and their income is low enough for the maximum, the reduction would be £1,440 and £360 would remain to pay. The 80% figure here is only an illustration: some councils allow 100% for working-age claimants, others cap the reduction lower, and the exact percentage is in your council's own scheme document. Never budget on an example — check your council's scheme.
How this site is organised
Start with what Council Tax Reduction is and how it differs from a discount. Who can claim sets out the basic tests. The pension-age scheme explains the national rules and the guarantee credit route to a full reduction. Working-age schemes explains why two neighbours in different council areas can get different help. How the reduction is calculated walks through the steps and the deductions for other adults in the home. Second adult rebate covers the alternative help when you cannot qualify yourself. How to apply lists what to have ready and how backdating works. Universal Credit and other benefits keeps the benefits apart. Changes, appeals and overpayments explains what to report and what to do if you disagree. Finally, the nations page and FAQ compares England, Scotland and Wales, points Northern Ireland readers to the right system, and answers the questions people ask most.
Three misunderstandings, cleared up at the start
Claiming Universal Credit does not claim Council Tax Reduction for you. The two systems are run by different bodies, and many people on Universal Credit miss out simply because they never make the separate council claim. Being in work does not rule you out. You can qualify on a low wage, including self-employment, if your income and capital are within your scheme's limits. A reduction is not a write-off of arrears. It lowers the bill from the date of the claim (or any backdated date allowed); arrears already built up still need a payment arrangement with the council.
One warning that applies to the whole site: because working-age schemes in England are local, a figure that is right for one council can be wrong for the next. Every council figure on this site is labelled either as a national rule, or as an example from a named council's published scheme. Check your own council's scheme before you rely on any figure.