New research from the charity Independent Age reveals that only 50% of pensioners entitled to Council Tax Reduction (CTR) are currently claiming the support, leaving an estimated £1.71 billion unclaimed. The average Council Tax bill in England is now £2,392 a year, meaning successful applicants could save up to £46 per week, potentially reducing their bill to zero.
Regional disparities in take-up
The charity's report found significant regional differences across England. The North East has the highest take-up rate at 60%, while the South East and South West have the lowest at 46%. Across Great Britain, increasing CTR take-up among people above State Pension age could lift around 74,000 older households out of poverty.
Impact on older people
Independent Age said many older people are struggling with rising household costs and view Council Tax as a priority bill, even if it means cutting back on essentials. Research carried out by the charity found some pensioners were reducing spending on food, heating and water to keep up with Council Tax payments, while others reported getting into debt because of the cost.
Confusion over discounts
The charity also found confusion among some older people about the difference between Council Tax Reduction and Council Tax discounts, which it believes may be preventing some households from claiming support. Joanna Elson, chief executive of Independent Age, said: "Older people on low incomes are having their budgets stretched to breaking point, and rising Council Tax is pushing far too many pensioners deeper into financial hardship. Our research shows that lack of Council Tax Reduction take-up is keeping a shocking 74,000 older households in poverty. It's not right that people in later life are cutting back on essentials such as food and heating so they can cover their Council Tax bill when this help is available to them."
How to claim
Council Tax Reduction schemes are administered by local councils, with eligibility and the level of support depending on a person's income, savings and household circumstances. The charity is calling on the UK Government and local authorities to improve awareness of CTR and make it easier for eligible households to claim. Pensioners who think they may qualify for help should contact their local authority or visit MYGOV.SCOT to check the rules for their area.
