Households struggling with finances may not be aware that several groups could cut their Council Tax payments by up to 100% under little-known discount rules. People living alone can claim the 25% Single Person Discount, and those living with children under 18 or caring for someone with a severe mental impairment may also qualify.
Who is eligible for Council Tax discounts?
Full-time students, people with disabilities, or those on a low income or means-tested benefits including Universal Credit or Pension Credit should check if they are entitled to a discount. Low-income households in Scotland can apply for the Council Tax Reduction scheme, which cuts an average of £950 off the annual bill. Successful claimants also receive up to 35% off their water and waste charges.
Latest figures from the Scottish Government show 458,950 households (one in five) were receiving support through the Council Tax Reduction scheme at the end of March this year. While the scheme mostly supports lower-income households, help is also available for middle-income earners or those struggling with payments, especially those in higher bands.
How to apply for discounts
To find out about getting help with your Council Tax, contact your local authority and explain your financial situation. They may put your account on hold and agree a later payment date. People paying by Direct Debit can also switch from 10 instalments to 12 by contacting their local council. If you don't already pay by Direct Debit, you can set this up on the local authority website, choosing 10 or 12 monthly instalments.
Full list of qualifying circumstances
You could cut your Council Tax bill by 25-100% if any of the following apply: you live alone or only with those under 18; you or someone you live with has a severe mental impairment; you are a live-in carer or live with one; you are a full-time student; you are on a low income; you get Pension Credit or other means-tested benefits; you have a disability.
Exemptions from Council Tax
You will not pay Council Tax if: you are a full-time student; you are in the Armed Forces in Forces accommodation; you live in a care home or hospital; your home is unoccupied and empty (up to six months); you have a severe mental impairment (e.g. dementia) — if you only live with someone who has dementia, you'll be treated as a sole occupant as they will be disregarded.
Further details on discounts
If you live alone, you should apply to your local council for a 25% reduction regardless of your financial circumstances. Council Tax is not calculated for anyone aged under 18, full-time students, student nurses, and some apprentices or trainees. Carers who look after someone in the household for at least 35 hours per week and meet additional criteria may be disregarded for Council Tax purposes; contact your local authority for eligibility criteria. This doesn't apply if the person receiving care is the carer's partner or the carer's child under 18.
You may also get your home moved to a lower band if it has decreased in value due to home adaptations for a disabled person, a motorway built nearby, or a room dedicated to equipment used by a disabled person daily. Changing payment method to 12 months instead of 10 can spread the cost, and paying the whole bill in one lump sum may earn a discount — check with your local council.
Council Tax Reduction scheme
You may be eligible to claim a Council Tax Reduction if you're on a low income or claiming certain benefits, regardless of whether you own or rent, or are working or unemployed. Each local council operates its own scheme, so the amount varies. Factors include which benefits you receive, your age, income, savings, who you live with, and how much council tax you pay. You may get more support if you receive a disability or carers benefit. If you receive the Guarantee Credit Part of Pension Credit, your Council Tax may be paid in full.
