Council Tax Reduction 2026/27
Last updated: March 2026 — Rates for the 2026/27 tax year
Council Tax Reduction (also known as Council Tax Support) is a discount on your council tax bill administered by your local council. The scheme varies by council area, but in general, if you are on a low income or receiving certain benefits, you may be entitled to a reduction of up to 100% of your council tax. People receiving Pension Credit Guarantee Credit are usually entitled to the maximum reduction.
Each council in England runs its own local scheme for working-age claimants, which means the rules and the maximum reduction can vary depending on where you live. Some councils offer up to 100% reduction, while others cap the maximum at 75% or 80%. In Scotland and Wales, national schemes provide up to 100% reduction. Pensioners are protected by a national framework that guarantees a minimum level of support across all council areas.
You should apply for Council Tax Reduction as soon as possible if you think you may be eligible. You may also qualify for other council tax discounts and exemptions — for example, a 25% single person discount if you are the only adult in your household, or an exemption if all residents are full-time students. These discounts can be combined with Council Tax Reduction in many cases. Contact your local council to find out what support is available in your area.
Council Tax Reduction Rates 2026/27
Eligibility
- You are liable to pay council tax
- You are on a low income or receiving qualifying benefits
- Your savings are below the threshold set by your local council (often £6,000 for working age, £16,000 for pensioners)
- You live in the property as your main home
How to Claim
Apply directly to your local council. Most councils allow you to apply online through their website. If you are claiming Universal Credit, you still need to apply for Council Tax Reduction separately — it is not included in your UC payment.
Frequently Asked Questions
Is Council Tax Reduction the same everywhere?▾
No. In England, each local council sets its own scheme for working-age claimants, so the rules and maximum reduction vary. In Scotland and Wales, there are national schemes. Pensioners are protected by a national minimum standard across all councils in England. Always check with your own council for the specific rules in your area.
Do I need to apply separately if I am on Universal Credit?▾
Yes. Council Tax Reduction is not part of Universal Credit and is administered by your local council. You need to apply to your council separately. When you apply for Universal Credit, the DWP may notify your council, but you should contact them directly to make sure your claim is processed.
Can I get Council Tax Reduction if I am working?▾
Yes. Council Tax Reduction is available to people who are working but on a low income. The amount of reduction you receive will depend on your income, household composition, and the rules of your local council's scheme. In many areas, people on Universal Credit automatically qualify for some level of council tax support.