Understanding Low Income for Council Tax Reduction in the UK 2023

Understanding Low Income for Council Tax Reduction in the UK 2023

Council tax is a local taxation system in the UK that is used to fund local services such as rubbish collection, street cleaning, and local schools. However, not everyone is able to pay the full amount of council tax due to their financial circumstances. For those who fall under the category of low income, there are council tax reductions available. But what exactly is classed as low income for council tax reduction in the UK in 2023?

Defining Low Income

Before we delve into the specifics of council tax reduction, it’s important to understand what is considered as low income. In the UK, a person is generally considered to be on a low income if they earn less than 60% of the median income. This figure is adjusted annually to account for inflation and changes in the economy. However, for council tax reduction, the definition of low income can vary depending on the local council’s policies.

Council Tax Reduction Scheme

The Council Tax Reduction Scheme, also known as Council Tax Support, is a benefit provided by local councils to help those on low income pay their council tax. The amount of reduction you can get depends on many factors including your income, your savings, your circumstances, and the council tax band of your home.

Eligibility Criteria

To qualify for a council tax reduction, you must be the person responsible for paying the council tax for the home you live in. You must also be on a low income or claiming certain benefits. Each local council in the UK has its own rules about who qualifies for a council tax reduction, how much they’ll get, and how to apply.

Income Thresholds

The income thresholds for council tax reduction can vary from one local council to another. Some councils have a set income limit, while others look at your income in relation to your expenses. For example, if your income is barely covering your basic living costs, you may be considered for a council tax reduction.

In 2023, the specific income thresholds for council tax reduction are not set at a national level but are determined by each local council. Therefore, it’s important to check with your local council to find out their specific income thresholds.

Council Tax Reduction Rules

The rules for CTR usually depend on whether you’ve reached State Pension age. If you’re under State Pension age, the ‘working age rules’ apply. If you’ve reached State Pension age, it depends if you or your partner get certain benefits. Your local council can make its own rules about who’s entitled to CTR and how much you’ll get. You’ll need to check with your local council to find out if you’re entitled to CTR.

How to Apply

To apply for a council tax reduction, you need to contact your local council. You can do this online, by phone, or by visiting your local council office. You’ll need to provide details about your income, savings, and expenses. The council will then assess your application and decide whether you’re eligible for a council tax reduction.

Understanding Low Income for Council Tax Reduction in the UK 2023

How to Check If You Can Get a Single Person Discount for Low Income for Council Tax Reduction in the UK 2023

Council tax can be a significant expense for many households in the UK. However, there are several discounts and reductions available for those who meet certain criteria. One such discount is the single person discount, which can be particularly beneficial for those on a low income. Here’s how to check if you’re eligible for this discount in 2023.

Understanding the Single Person Discount

If you’re the only adult living in your home, you’re eligible for a 25% discount on your council tax bill. This is known as the single person discount. When determining how many people live in a property, some individuals aren’t counted – they’re referred to as ‘disregarded people’. If everyone living in the property is disregarded, the council tax bill will still apply, but it will have a 50% discount.

Understanding Eligibility

Before you apply for a Council Tax Reduction in the UK, you should first understand if you are eligible. If you’re on a low income, unemployed, working, or claiming benefits, you could be eligible for this tax reduction. Your bill could be reduced by up to 100% depending on your circumstances​.

Confirming Your Circumstances

The amount of reduction you can receive depends on your circumstances and where you live, as each council runs its own scheme. These circumstances include your income, the number of children you have, the benefits you receive, and your residency status. Your household income, which includes savings, pensions, and your partner’s income, will also be considered. Whether your children live with you or if there are other adults living in the house will also affect the amount of discount you can receive.

Who Are ‘Disregarded People’?

‘Disregarded people’ are individuals who, for various reasons, are not counted when determining the number of adults living in a property for council tax purposes. This can include individuals under 18, students, those with severe mental impairments, and certain others. If everyone in your home falls into one of these categories, you won’t have to pay any council tax. ‘Disregarded people’ are individuals who are not counted by the local authority when calculating council tax for a household. These can be individuals who are:

  • Under 18 years old
  • 18 or 19 years old and someone is entitled to Child Benefits for them
  • 18 or 19 years old and were still in education on April 30
  • Severely mentally impaired with a permanent condition, such as dementia. To qualify for this, you would need to provide a doctor’s certificate that states when their mental health condition started​.

‘Disregarded people’ must also be claiming one of the qualifying benefits, which include incapacity benefit, attendance allowance, severe disablement allowance, disability living allowance, and many others​. In Scotland, additional criteria are applicable, and you could also be eligible if you’re receiving tax credits, employment and support allowance, or universal credit​.

How to Apply for the Single Person Discount

If you believe you’re entitled to the single person discount, you should inform your local council. You’re entitled to the discount from the time the person moved out, even if you informed the council later. To apply, you can contact your local council online, by phone, or by visiting your local council office.

What If You’re Not the Only Adult in the Home?

If you live with another adult who isn’t disregarded, you might still be able to get a different discount called a ‘second adult rebate’. The person you live with must be on a low income or receiving certain benefits.

What will happen for Low Income for Council Tax Reduction, If you have another home, in the UK 2023

Impact of Owning Another Home

If you own another home, your local council might offer you a discount. This could be the case if the property is not safe to live in or if it’s connected to your main home. For instance, if you have a holiday home or second home, you might be eligible for a ‘second home discount’, potentially saving you up to 50% on council tax. However, this discount varies by council and may only be available for a short time.

An extra home connected to your main property, known as an ‘annexe’, may also be eligible for a 50% discount if it’s used by people who live in the main property or by their immediate family members. If a dependent family member lives in the annexe, you won’t pay any council tax on it. If the annexe is empty, you also don’t need to pay council tax on it.

Navigating Council Tax Reductions

It’s important to note that if you believe you’re eligible for a discount and it’s not reflected in your bill, you should apply to your local council for a discount as soon as possible. If your bill shows that a discount has been applied and you believe it shouldn’t have been, you must inform your local council within 21 days to avoid a potential penalty.

In conclusion, while low-income households can benefit from Council Tax Reduction, owning another home can also impact your council tax. It’s crucial to understand these nuances to ensure you’re paying the correct amount of council tax and taking advantage of any discounts you’re entitled to.


In conclusion, the definition of low income for council tax reduction in the UK in 2023 is not a one-size-fits-all figure. It varies depending on the policies of each local council. If you’re struggling to pay your council tax, it’s worth checking with your local council to see if you’re eligible for a reduction. Remember, help is available, and you don’t have to navigate these financial challenges alone.