Most people in England pay council tax without ever asking if they’re paying more than they should. Yet every year, thousands of households quietly save hundreds of pounds simply because they checked the rules and realised they were entitled to a discount or reduction. It’s one of those things many people don’t talk about, but it matters especially with the cost of living biting harder than ever.
So, let’s go through this together. I’ll walk you through how the system works, who can qualify for a discount, and how to make sure you’re not missing out on help that already exists. We’ll talk like people trying to make sense of this, not as bureaucrats reading from a handbook.
Understanding What Council Tax Really Is
Before we go deep, it’s important to remember what council tax actually does. It’s a local tax set by your council to fund services like rubbish collection, street lighting, libraries, social care, and local schools. Everyone who lives in a property that isn’t exempt usually pays it, but the amount depends on what “band” your property is in.
Each home in England is placed into a council tax band (A to H) based on its value in 1991. The more valuable your property, the higher your band and usually the higher your bill. But the bill doesn’t tell the whole story. There are rules that can reduce how much you pay, sometimes by a lot.
You Might Be Paying More Than You Should
One of the biggest surprises for people is how many situations automatically qualify for a reduction or exemption, yet councils often rely on you to come forward and apply. It’s not always automatic.
If you live alone, for instance, you should be getting a 25% single person discount. That’s not a gesture it’s your legal entitlement. But many people simply don’t know to ask, especially older residents who’ve lost a partner or whose children have moved out.
Even if someone else lives in your home, they might not count for council tax purposes. The law refers to them as “disregarded people.” These include under-18s, some 18- or 19-year-olds still in education, full-time students, carers, or people with severe mental impairments.
Let’s say, for example, a woman named June lives with her adult son, Dan, who has severe learning difficulties and receives Employment Support Allowance. In this case, Dan is classed as a disregarded person because of his condition. June therefore gets a 25% discount and in some cases, if everyone in the home is disregarded, the discount can go up to 50%.
In special situations, if all occupants are students or severely mentally impaired, you might not pay any council tax at all.
What Happens If Someone Moves Out
If someone moves out of your home a lodger, partner, or family member and you become the only adult, you’re entitled to your 25% single-occupier discount from the day they left. Even if you didn’t tell the council right away, you can still backdate it. The important thing is to let your council know as soon as you realise.
Most local authorities now let you update your household details online in minutes. You just need your council tax reference number, which you’ll find on your bill.
Who Doesn’t Count for Council Tax
Let’s make this clearer. When councils calculate your bill, not everyone living in your home counts as an adult for council tax purposes. There are rules that say some people simply “don’t count” and that’s where the biggest misunderstandings happen.
Children under 18 never count
Teenagers aged 18 or 19 who are still in school or college, or for whom someone still receives Child Benefit, also don’t count.
Full-time students at college or university are ignored for council tax.
So are student nurses, certain apprentices, and young people on government training schemes.
Even some adults are disregarded if they have severe mental impairments for instance, dementia or other permanent cognitive conditions. These people will need a doctor’s certificate, which is free, and they must be claiming one of several disability-related benefits such as Attendance Allowance, Personal Independence Payment (PIP), or Employment Support Allowance (ESA). Once those conditions are met, that person will not count toward council tax.
If everyone in a property is disregarded, there’s a 50% reduction. If everyone is either a student or severely mentally impaired, there’s no council tax to pay at all.
Temporary Absences and Special Circumstances
Some people are away from home for long periods, and that can also affect the bill. For example, a person who has moved into a hospital or care home long-term, or someone in prison or detained under mental health legislation, is disregarded for the period they’re away.
Even people staying in hostels or receiving treatment for drug or alcohol issues can sometimes be excluded when their property is assessed.
This means if your family member is in long-term care, or you’re maintaining a property while they’re away, it’s worth contacting your council to see if your tax can be reduced.
Help for People with Disabilities
If you or someone you live with is disabled, there’s a special kind of help called a Disabled Band Reduction. It’s not technically a discount instead, your property is moved down one band for tax purposes. So, if you live in a Band D home, you’d be charged the Band C rate.
To qualify, the property must have been adapted or have special features for the disabled person’s needs, such as an extra bathroom or kitchen, a dedicated therapy room, or enough indoor space for wheelchair use.
If you’re already in the lowest band (Band A), councils will reduce your bill by roughly 17%. You’ll need to provide evidence sometimes a doctor’s letter or proof of the adaptations.
This is one area where people often miss out simply because they don’t know the rule exists. Councils rarely advertise it, so it’s worth asking directly.
Empty Homes and Second Homes
If your property is empty, you might think it’s unfair to pay full council tax and in some cases, the council agrees. Some councils offer a discount on properties that are empty because they’re being repaired, renovated, or are not safe to live in.
The reduction varies from one local authority to another. Some councils give a few months of discount, others don’t offer any. Once a property has been empty for two years or more, you may actually have to pay extra under the “empty homes premium,” so it’s important to check your council’s local policy.
If you have a second home or holiday home, you still have to pay council tax on it. Some councils give a “second home discount” if the property isn’t used as anyone’s main residence sometimes up to 50%, though usually for a limited time.
And if your second home exists because your job forces you to live elsewhere for example, you work in another city and must live near your workplace you may be entitled to a mandatory 50% discount.
Annexes and Family Accommodation
Some properties have a self-contained annexe for example, a converted garage or a small flat within a main home. If a family member lives there, the council will often give a 50% discount on the annexe.
If that annexe is occupied by a dependent relative, like a parent over 65 or someone with a physical or mental disability, you might not have to pay any council tax for it at all. If it’s empty, there’s usually no tax either.
Council Tax Reduction (CTR): Help for People on Low Income
So far, we’ve talked mostly about discounts and exemptions that depend on who lives in your home. Now let’s look at help that depends on your income.
Council Tax Reduction (CTR), sometimes called Council Tax Support, is a major scheme for people who are struggling financially. It replaced the old “Council Tax Benefit” years ago, but it works similarly — it helps you pay less or even nothing, depending on how much you earn, how many people live with you, and what benefits you receive.
The scheme is run locally, so your council decides the exact rules for working-age residents. But in general, if you’re on a low income, claim Universal Credit, Pension Credit, or other means-tested benefits, you may qualify.
You can’t get cash in hand; instead, your council reduces the amount of council tax you owe each month.
Who Can Apply for Council Tax Reduction
To apply, you must be the person responsible for the council tax bill. You also need to live in the property as your main home. If you’re renting, you can still apply it doesn’t matter if your landlord owns the property, as long as the council tax is in your name.
The council will ask about your income, savings, benefits, and everyone else who lives with you. If someone in your household earns money, that can affect how much reduction you get.
There’s a savings limit too: if you have over £16,000 in savings or property (apart from your main home), you usually won’t qualify unless you receive the guarantee part of Pension Credit.
Rules for Working-Age People and Pensioners
If you’re below State Pension age, the “working-age rules” apply. Under these, each local council sets its own policy, which means the level of help can vary depending on where you live. Some councils give up to 100% reduction; others require everyone to pay a minimum contribution, even if you have very low income.
If you’ve reached State Pension age, the rules are national, and generally more generous. Pensioners can usually get help if their income is below a certain level, and their savings are under £16,000 unless, again, they receive Pension Credit Guarantee, in which case they’re automatically eligible.
What If You’re Not British?
For non-British residents, eligibility depends on your immigration status. You can only get Council Tax Reduction if your visa or status allows you to claim what the government calls “public funds.”
However, there’s an exception: even if you can’t access public funds, you can still ask the council for something called a discretionary reduction. This doesn’t count as a public fund, so it won’t affect your immigration status. It’s meant for people in extreme hardship who genuinely cannot afford their bill.
When You Can’t Get CTR: Other Help Options
If you apply for CTR and don’t qualify, there are still a few things you can do. Some councils offer a second adult rebate, which helps if you share your home with another adult who isn’t your partner and has a low income.
Alternatively, if your situation is dire — for instance, you’re behind on bills, facing eviction, or unable to buy essentials — you can ask your council for a discretionary reduction on the grounds of hardship. Councils have the power to reduce or even cancel your bill completely if paying it would cause severe distress or financial harm.
To request this, you’ll usually need to provide evidence like payslips, bank statements, or letters from benefit offices to show that your situation is serious.
If You Think Your Bill Is Wrong
Mistakes happen. Sometimes councils forget to apply a discount, or they continue charging after someone has moved out. If your bill doesn’t reflect the reduction you think you deserve, you should contact your council immediately ideally in writing or via their online form.
If they’ve applied a discount and you think it’s incorrect, you’re also obliged to tell them within 21 days. Failing to do so could result in a £70 penalty.
If you dispute their decision and they don’t resolve it within two months, you can appeal to an independent body called the Valuation Tribunal. It’s free and separate from the council, and their decisions are binding.
Real Example: Dan and His Carer
To make all this a bit more real, imagine Dan, a young man with severe learning disabilities, living with his full-time carer in a small bungalow. Both are “disregarded people” under council tax rules — Dan because of his mental impairment, and the carer because live-in carers provided by charities or local authorities are also excluded.
Together, that means the property qualifies for a 50% discount. It’s a real-life example of how understanding the small print can save hundreds of pounds every year.
Why Councils Don’t Always Tell You
You might wonder: why isn’t this automatically adjusted? After all, the council knows your address and who pays the bill. The truth is, the system relies heavily on self-reporting. Councils simply don’t have the data to check who’s a student, who’s disabled, or who’s moved out unless you tell them.
That’s why spreading awareness matters. For some families, missing out on these entitlements could mean hundreds of pounds lost every year.
Tips for Checking and Applying
The best way to check your eligibility is through your local council’s website. Almost every council now has a “Check or Apply for Council Tax Discount” section. You’ll usually need:
- Your council tax account number (from your latest bill)
- Proof of who lives in your home (for example, tenancy agreement or ID)
- Proof of income, benefits, or student status (letters, payslips, certificates, etc.)
- A doctor’s certificate if applying for severe mental impairment discount
- Details about any changes like someone moving out, moving in, or changes in income
If you’re struggling with the forms or need guidance, Citizens Advice can help for free. They’ll even contact the council on your behalf if you’re finding it difficult.
A Word on Honesty
While it’s important to claim what you’re entitled to, it’s just as important to be honest. Councils do carry out checks, and failing to report changes in your household can lead to fines or repayment of discounts. If someone moves in or a student finishes their course, inform the council promptly.
That said, don’t let fear stop you from applying. If you qualify, the law is on your side, and councils expect people to come forward.
If You’re in Hardship Right Now
If you can’t afford your council tax at all maybe because you’ve lost a job, had your hours cut, or your benefits haven’t come through don’t ignore the bill. Contact your council immediately. Most have hardship or discretionary support funds to prevent people from falling into crisis.
You can also reach out to Citizens Advice, StepChange, or your local welfare team for help arranging payment plans. Ignoring the bill could lead to court action or bailiff involvement, but councils prefer to work with you if you explain early.