Estimate how much help you can get with your Council Tax bill — with separate rules for working-age households and pensioners, plus discounts for carers, disabled residents, students and single adults.
Estimated Annual Bill to Pay£0.00
Council Tax Reduction in 2026/27 — A Guide for Every Household
Council Tax Reduction (CTR), also called Council Tax Support, helps people on a low income pay their Council Tax. It is not one scheme but many: there is a single national framework for people of State Pension age, and a separate, locally-set scheme for everyone of working age. Which one applies to you changes the savings limits, the income rules, and how much you can get — so this page treats both, alongside the discounts and exemptions that any household can claim on top.
Max reduction
100%
Pay nothing — common for Guarantee Pension Credit
Savings cut-off
£16,000
Waived on Guarantee Pension Credit
Single Person Discount
25%
Separate right, any income
Income taper (pension)
20%
Of income above your applicable amount
Two schemes — working age vs pension age
The single most important thing to establish is which scheme covers you. If you, or your partner, have reached State Pension age, you are assessed under the more generous national pension-age rules. If you are both under State Pension age, your local council's own working-age scheme applies — and these vary widely.
Feature
Working-age scheme
Pension-age scheme
Who sets the rules
Each local council
National government
Maximum reduction
Often capped (e.g. 80–91.5%)
Up to 100%
Lower savings disregard
£6,000
£10,000
Tariff income
£1/wk per £250 over £6,000
£1/wk per £500 over £10,000
Upper savings limit
£16,000
£16,000 (waived on Guarantee Credit)
Backdating
Often none, or 1–3 months
Up to 3 months with good reason
Working-age postcode lottery. There are 300+ separate working-age schemes in England. Some give 100% to those on Universal Credit; others cap support at 80% or use income bands, so there is almost always something to pay. Our working-age estimate uses a representative banded model — your council's exact scheme may differ.
For pensioners: the national scheme
Once you reach State Pension age, the rules are set nationally and are notably more generous. If you receive the Guarantee Credit part of Pension Credit, you are normally entitled to a 100% reduction — your Council Tax bill falls to zero — and the savings limit does not apply, no matter how much capital you hold.
If you don't get Guarantee Credit but have a modest income, you can still get partial help. The council compares your weekly income (including your State Pension and any private pension, plus tariff income from savings over £10,000) against your applicable amount — the level the rules say you need to live on. Income at or below it means maximum reduction; income above it reduces your help by 20p for every £1 over.
Applicable amount (2026/27, weekly)
Single
Couple
Standard minimum guarantee level
£238.00
£363.25
A successful Pension Credit claim of even a few pence a week passports you to full Council Tax Reduction and other help. Check first with the Pension Credit Calculator — around a third of eligible pensioners miss out.
Second Adult Rebate — a pensioner option many miss
There is a separate, little-known reduction for people of pension-credit age who don't have a partner but share their home with another adult on a low income who isn't a tenant or lodger — for example an adult son or daughter. Called the Second Adult Rebate (or "alternative maximum CTR"), it is unusual because it ignores your income entirely and looks only at the other adult's income. The council awards whichever is worth more — this or ordinary CTR.
Second adult's circumstances
Reduction
On Pension Credit / Income Support / income-based JSA / income-related ESA
25%
Gross weekly income up to £288.99 (from April 2026)
15%
Gross weekly income £289.00–£375.00 (from April 2026)
7.5%
Above that range
None
Exact thresholds are set locally; figures shown reflect a representative 2026/27 scheme. If you qualify for both ordinary CTR and Second Adult Rebate, you receive whichever is more favourable, not both.
How savings and capital are treated
Savings affect CTR through two mechanisms: an upper cut-off, and "tariff income" between the lower and upper thresholds. The thresholds differ by scheme, which is why the same savings pot can have a very different effect depending on your age.
Savings
Working age
Pension age
Up to lower threshold
£0–£6,000 ignored
£0–£10,000 ignored
Between thresholds
£1/wk per £250 over £6,000
£1/wk per £500 over £10,000
£16,000 or more
No CTR
No CTR (unless on Guarantee Credit)
A lump sum from a deferred State Pension is disregarded as capital for CTR. And remember: even with maximum CTR, you may still owe separately-billed water and sewerage charges.
Disabled residents and carers
Several reductions exist specifically where disability or caring is involved — and they stack on top of CTR. Crucially, the Disabled Band Reduction is a separate scheme from means-tested CTR: it lowers your Council Tax band, regardless of income.
Disabled Band Reduction
1 band lower
If your home has been adapted for a disabled resident — an extra bathroom, a room used for their needs, or space for wheelchair use indoors — your bill is charged at the band below yours. Band A homes get a fixed reduction.
Carer disregard
Disregarded
A live-in carer providing at least 35 hours a week to someone who isn't their partner (and who gets a qualifying disability benefit) is disregarded for Council Tax — which can unlock a 25% discount.
Severe mental impairment
Disregarded
An adult medically certified as severely mentally impaired (e.g. dementia) and entitled to a qualifying benefit is disregarded entirely — potentially a 25% discount, or 100% if everyone in the home qualifies.
Attendance Allowance & CTR
Income ignored
Attendance Allowance, PIP and DLA are not counted as income for CTR — and claiming them can increase your applicable amount, raising your reduction. See the Attendance Allowance Calculator.
Students, apprentices, care leavers and others
Some people are "disregarded" — not counted when working out how many adults live in a property. If everyone in the home is disregarded, the bill can fall by 50% or even to nothing; if all but one are disregarded, the 25% Single Person Discount applies.
Full-time students
A home occupied only by full-time students pays no Council Tax. A student living with one non-student usually triggers the 25% discount.
Apprentices and 18/19-year-olds in education
Apprentices on low pay and young people still in or just leaving full-time education are commonly disregarded.
Care leavers
Many councils give care leavers under 25 a full or substantial discount — check your local scheme directly.
Live-in carers and certain others
Care workers, members of religious communities, and people in detention are among other groups who may be disregarded.
Single Person Discount — a separate right
Don't confuse CTR (means-tested) with the Single Person Discount. If you are the only adult aged 18+ in your home, you are legally entitled to a flat 25% off your bill, whatever your income — even a high earner gets it. This calculator applies the 25% first, then works out any means-tested reduction on the discounted amount. See the dedicated Single Person Discount page.
How to claim Council Tax Reduction
1
Apply through your local council
CTR is run by your local authority, not the DWP. Find your council via the GOV.UK portal and apply online — being on Universal Credit doesn't apply for it automatically.
2
Claim discounts separately
Single Person Discount, disabled band reduction and disregards are claimed alongside CTR — they don't apply automatically either.
3
Ask about backdating
Pension-age claims can often be backdated up to 3 months; working-age backdating is limited and varies by council. Claim promptly to avoid losing money.
✓
Report changes
Tell the council about changes in income, savings or who lives with you — failing to can cause overpayments you'll have to repay.
Frequently asked questions
Who qualifies for Council Tax Reduction?
Anyone on a low income — whether working, unemployed, disabled or retired — may qualify. Pension-age households are assessed under generous national rules; working-age households under their local council's scheme. Savings of £16,000 or more usually rule you out, unless you receive Guarantee Pension Credit.
Can I get 100% off my Council Tax?
Yes — most commonly if you're of pension age and receive the Guarantee Credit part of Pension Credit, which usually means a full 100% reduction. Some working-age councils also give 100% to those on Universal Credit, but many cap it, so a full reduction is less certain for working-age claimants.
Does my State Pension count as income?
Yes. Your State Pension and any private or workplace pensions count as income for CTR. Disability benefits such as Attendance Allowance, PIP and DLA, and Child Benefit, are ignored. Savings over £10,000 (pension age) or £6,000 (working age) also add notional "tariff income".
What is Second Adult Rebate?
It's a reduction for pension-age people without a partner who share their home with another adult on a low income (not a tenant or lodger). It's based on that adult's income, not yours. The council pays whichever is higher — this or ordinary CTR — so it's worth claiming if your own income is too high for standard support.
Is the Single Person Discount the same as Council Tax Reduction?
No. The 25% Single Person Discount is a flat reduction for anyone who is the only adult in their home, regardless of income. Council Tax Reduction is means-tested and depends on income and savings. You can receive both — the discount is applied first, then CTR on the reduced amount.
I'm a mixed-age couple — which scheme applies?
For Council Tax Reduction, if either of you has reached State Pension age you're generally assessed under the pension-age rules — unlike the main benefit, where mixed-age couples must claim Universal Credit. See the Mixed-Age Couple Calculator for the wider picture.
