Council tax discounts and exemptions: who pays less

Council tax discounts are one of those things where a surprising number of people are paying more than they need to. The discounts don’t kick in on their own - you have to actively claim them. We’d always recommend checking what you’re entitled to, because the savings can be significant.

Single person discount (25% off)

This is by far the most commonly claimed discount. If you’re the only adult in the property, you get 25% off your bill. On a £2,000 annual bill, that’s £500 saved.

The twist is that not everyone over 18 counts as an “adult” for council tax. Full-time students, student nurses, apprentices earning under £195 a week, people with severe mental impairment, live-in carers (other than your spouse or partner), and under-18s are all “disregarded.” If you live with only disregarded people, you’re treated as living alone and still get the 25%.

So if you share with a full-time student, you get the discount. If you’re caring for a relative and that relative has severe mental impairment, you might get the discount. It’s worth checking even if your situation isn’t straightforward.

Full exemptions

Some properties are completely exempt from council tax. The main ones are: all-student households (nobody pays), properties where the owner has died and probate hasn’t been granted yet (exempt for up to 6 months after probate), armed forces accommodation, properties where all residents have severe mental impairment, properties left empty because the occupant has moved into a care home, and annexes occupied by a dependent relative who’s elderly or disabled.

The student exemption is the most commonly claimed full exemption. If every person in the property is a full-time student, no council tax is due. But one non-student changes things - see our student council tax guide for the full picture.

Disability reduction

If someone in your household has a disability and your home has been adapted or has features essential to their needs, you may qualify for a reduction. Specifically, the home needs to have an extra room essential for the disabled person’s needs (not just a bedroom), an extra bathroom or kitchen used by them, or enough space for wheelchair use inside.

The reduction works by moving you down one band. Band D becomes Band C rates. If you’re already in Band A, you still get a reduction equivalent to a band below. And importantly, this isn’t means-tested - your income doesn’t matter.

Council tax reduction (low income)

This used to be called Council Tax Benefit before it got devolved to individual councils. Each council runs its own scheme now, so the rules and amounts vary.

Generally, you might qualify if you’re on Universal Credit, JSA, ESA, Income Support, Pension Credit, or just on a low income even without benefits. The reduction can be up to 100% depending on your circumstances and your council’s scheme. Apply through your council with proof of income and savings.

Care leaver discount

If you were in local authority care and you’re now aged 18-24, many councils offer a discount. Some give 100% reduction, others 50%. It varies by area. This was introduced to help young people leaving care get on their feet without the immediate pressure of a council tax bill.

Empty properties

Councils have a lot of discretion here and policies differ wildly. Some give short-term discounts for empty unfurnished properties. Others charge full rate from day one. And properties that have been empty for two or more years can face premiums of up to 200% - double the normal rate. Check with your council, because there’s no national standard.

Second homes

The old discounts for second homes have largely been scrapped. Most councils now charge full rate, and some charge up to double. If you’ve got a holiday home or second property, expect to pay at least full council tax on it.

How to claim

Contact your council by phone, online form, or email. You’ll need to explain what you’re claiming and provide evidence: student certificates, disability documentation, proof of income, whatever’s relevant. They’ll adjust your bill once the claim is processed.

If you qualify but haven’t been claiming, ask about backdating. Councils can usually backdate, though there are limits on how far back they’ll go. If you’ve been paying full rate whilst living alone for three years, you might be owed a decent chunk of money.

And if your circumstances change - someone moves in, a student graduates, you start earning more - you’re supposed to tell the council. They do check, and claiming discounts you’re not entitled to can result in penalties.