Households across Britain may be entitled to a full or partial reduction on their Council Tax bill for the 2026/27 financial year, with up to seven criteria potentially qualifying them for a discount. First payments have already begun arriving, and while most bills have risen, certain groups can slash payments by up to 100 per cent under little-known rules.
Who Can Claim a Council Tax Discount?
According to the Daily Record, those living alone can claim the 25 per cent Single Person Discount. Residents with children under 18, or those caring for someone with a severe mental impairment (SMI), may also qualify for a reduction. Full-time students, disabled individuals, or those on a low income or means-tested benefits such as Universal Credit or Pension Credit should also check eligibility.
Eligibility Criteria for Discounts
You could cut your Council Tax bill by 25 to 100 per cent 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 (SMI)
- 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), for example, if you have gone into hospital
- You have a severe mental impairment (e.g., dementia) – if you only live with someone who has dementia, you will be treated as a sole occupant as they will be disregarded, but you will not both be exempt
How to Apply and Payment Options
Discounts and exemptions are not automatic; you must apply to your local council. Those paying by Direct Debit who struggle with increased payments can switch from 10 instalments to 12 by contacting their council. If you do not currently pay by Direct Debit, you can set it up via your local authority's website, choosing either 10 or 12 monthly instalments.
