Glossary · UK
What is Council Tax Reduction?
A means-tested discount on your council tax bill for people on low incomes or benefits.
Full Definition
Council Tax Reduction (also called Council Tax Support) is a means-tested scheme that lowers the council tax bill of people on low incomes, replacing the old national Council Tax Benefit. Since 2013 each local authority in England designs its own scheme, so the level of help — and whether working-age claimants must pay a minimum percentage — varies by council; pensioners are protected by a national framework that can cover up to 100% of the bill. Wales and Scotland run nationally consistent schemes. It is separate from fixed discounts such as the 25% single-person discount and exemptions for full-time students or severely mentally impaired residents. For 2026/27, eligibility usually depends on income, savings (often capped around £16,000), household make-up and which council tax band (A to H in England) your property falls in. You apply directly to your local council, and it can be backdated in some cases.