What is the difference between Council Tax Reduction and the single person discount?

Full answer

These are two entirely different, non-exclusive types of council tax help, and confusing them means many households miss out on support they are entitled to. **Single person discount -- based on household composition, not income** If you are the only adult (aged 18+) living in a property as your main home, you are entitled to a flat 25% reduction on your council tax bill, regardless of how much you earn or how much you have in savings. Certain other adults (such as full-time students, some carers, and people who are 'severely mentally impaired') are 'disregarded' for council tax purposes, meaning a household with, say, two adults where one is a disregarded person can also qualify for the 25% single person discount. **Council Tax Reduction -- means-tested support** Council Tax Reduction (CTR), also called Council Tax Support in some areas, is a means-tested benefit administered by your local council that can reduce your council tax bill based on your income, savings, and household circumstances -- for those on the lowest incomes, particularly pensioners, it can reduce the bill by up to 100%, effectively eliminating council tax entirely. Working-age claimants typically get a smaller maximum reduction (many councils cap working-age CTR at around 70-90% of the bill, varying by local scheme, since councils in England set their own working-age rules following the end of national Council Tax Benefit in 2013). **They can be combined** A single person living alone on a low income can claim both: first apply the 25% single person discount to reduce the base bill, then apply for Council Tax Reduction on top, which is calculated based on the discounted bill -- so someone with very low income living alone could end up paying little or no council tax at all once both are applied. **How to apply** Both are applied for through your local council (not central government), usually via an online form -- single person discount is a simple declaration, while Council Tax Reduction requires evidence of income, savings, and household details, similar to a benefits claim, and may need to be reassessed periodically or when your circumstances change. **Practical tip** If your circumstances change (someone moves in or out, your income drops, you start receiving certain benefits), tell your council promptly, since backdating rules for Council Tax Reduction are often limited compared with the single person discount, which can sometimes be applied retrospectively for periods when you genuinely lived alone.

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