Seven categories of individuals could reduce their Council Tax bills by 25% to 100% under little-known discount rules, as reported by the Daily Record. For the 2026/27 financial year, most households face increases, but eligible groups can apply for reductions.
Who Can Claim a Discount?
The following groups may qualify for a partial or full discount:
- People living alone or only with under-18s: eligible for the 25% Single Person Discount.
- Individuals with a severe mental impairment (SMI) or those living with someone who has SMI.
- Live-in carers or those living with a carer.
- Full-time students.
- People on a low income.
- Recipients of Pension Credit or other means-tested benefits, including Universal Credit.
- Households with a disabled resident.
Full Exemptions
Some individuals are completely exempt from paying Council Tax:
- Full-time students.
- Armed Forces personnel in Forces accommodation.
- People living in care homes or hospitals.
- Owners of unoccupied homes (up to six months, e.g., if the occupant is in hospital).
- Those with a severe mental impairment (e.g., dementia); note that if only one person in the household has SMI, they are disregarded, but the other occupant is not exempt.
How to Apply
Discounts are not automatic. Residents must contact their local council to claim. Those paying by Direct Debit struggling with increases can also request to switch from 10 to 12 monthly instalments by contacting their council. For those not on Direct Debit, setting it up via the local authority website allows choosing between 10 or 12 payments.
According to the Daily Record, state pensioners living alone have been warned they may have been overcharged by HMRC for up to 10 years, potentially losing £500.
