Could You Get Money Off Your Council Tax Bill Now You’re Retired?

What is Council Tax Reduction?

Council Tax Reduction (sometimes still called Council Tax Support) is a scheme run by your local council that lowers your council tax bill if you’re on a low income. It isn’t a single national benefit with one set of rules — each council designs its own scheme within some broad guidelines, which is why the amount of help on offer can vary depending on where you live.

Because you’ve reached State Pension age, you’ll usually be assessed under the “pension-age” rules rather than the working-age rules, which tend to be more generous.

Who can get it once they’ve reached State Pension age?

If you, or your partner, have reached State Pension age, the pension-age Council Tax Reduction rules will usually apply to your claim. These rules look at your income and any savings or capital you and your partner have between you.

You don’t need to be on any other benefit to apply — Council Tax Reduction is assessed on its own, based on your household’s circumstances.

How much could it reduce your bill by?

This is where the variation between councils really shows. Some schemes can reduce a bill by up to 73%, while others can bring it down by up to 100%, effectively wiping out the bill completely for people on the lowest incomes. Exactly how much you’d get depends on your income, your savings, who else lives in your home, and the scheme your own council runs.

There’s no way to know your exact figure without applying — but if money is tight, it’s worth finding out rather than assuming you won’t qualify.

Does having savings stop you from qualifying?

Savings are taken into account, but not pound for pound. The first £10,000 of savings and capital is usually disregarded completely. Above that, if you and your partner have more than £16,000 in savings and capital between you, you may not be eligible.

There’s an important exception, though: if you’re already receiving the Guarantee Credit part of Pension Credit, the £16,000 savings limit doesn’t apply to you at all, and you may still qualify for Council Tax Reduction regardless of how much you have in savings.

How do you apply for Council Tax Reduction?

You apply through your local council, not through the DWP or central government, because each council administers its own scheme. The quickest way is usually through your council’s website, where you’ll find a Council Tax Reduction or Council Tax Support application form.

• Find your council’s website and search for “Council Tax Reduction” or “Council Tax Support”
• Complete the application form online, or ask your council for a paper form if you’d prefer
• Have proof of your identity, income and savings ready to send with your claim
• Contact your council directly if you’re unsure which documents you need — requirements vary by area

What if you’re already getting Pension Credit?

Pension Credit is often described as a “gateway” benefit, because getting it can open the door to other help, including Council Tax Reduction. If you already receive Pension Credit, mention this clearly on your Council Tax Reduction application, as it can simplify the assessment of your income and, as covered above, removes the savings limit that would otherwise apply.

If you haven’t checked whether you’re entitled to Pension Credit itself, it’s worth doing that first, since it can be worth an average of around £4,300 a year to those who qualify, and can unlock further support beyond your council tax bill.

Can you still claim if you missed out on previous months?

If you didn’t realise you were eligible and have been paying full council tax for a while, don’t assume it’s too late. Pensioners usually have a more flexible backdating window than working-age claimants — typically around three months — so ask your council whether your claim can be backdated when you apply.