Income down and the council tax bill looming? This timeline shows when to notify your council, how the reduction is worked out and what to do while your claim is decided.
Need to know
- Council Tax Reduction, also called Council Tax Support, is a discount on your bill worth up to 100 per cent for people on a low income or claiming benefits.
- Each council runs its own scheme, so identical households can receive different amounts depending on where they live.
- You have a legal duty to report changes that could affect your entitlement, both while a claim is being decided and while you receive a reduction.
- If the council asks for evidence, you normally have one month from making the claim to provide it, or you may need to start again.
- If your application is refused, you can ask the council for a detailed explanation within one month of the decision.
If your income has dropped, the council tax bill can become one of the hardest demands to keep up with. Council Tax Reduction, sometimes called Council Tax Support, is a discount on the bill for people on a low income or claiming benefits, and depending on your council’s scheme it can cut what you owe by up to 100 per cent. This timeline sets out what to do at each stage, from the day your circumstances change to what happens if the council refuses your application.
Day One: Tell the Council Your Situation Has Changed
You have a legal duty to notify the council of any change you could reasonably be expected to know might affect your entitlement or the amount you receive. That duty applies between making an application and a decision being made, as well as while you are receiving a reduction. A drop in earnings, a partner moving in or out, or a benefits award starting or stopping all count.
Contact two teams, because most councils split the work. The billing office deals with the bill itself, while the benefits or revenues team handles reduction claims. If you claimed Council Tax Reduction before and have been on Universal Credit continuously since, some councils offer a short rapid reclaim form rather than a full application.
If you have not yet claimed Universal Credit and think you may be entitled to it, it can help to sort that claim first. When a Universal Credit claim succeeds, the Department for Work and Pensions can notify the council, and the information it passes on is used to assess any entitlement to Council Tax support. Our checklist of what to have ready when you first claim Universal Credit covers the documents and details to gather before you start.
Week One: Make the Claim
Apply to your local council, because each one runs its own scheme and sets its own rules. Most councils take applications through an online form, and some let you save an unfinished form and return to it within 14 days using an access key the website gives you.
You can apply whether you own your home, rent, are working or are unemployed. You must be the person named on the bill, and if you are jointly responsible, the council may be able to help with your share. The claim looks at your household income, which includes savings, pensions and your partner’s income.
If you are not sure whether you qualify, claim anyway. You will not get any benefit if you do not claim, so hand the application in as soon as you can. If you are claiming late, you can ask the council to consider backdating it when you complete the form, which it may do if you have a good reason. The reduction is also separate from the discounts and exemptions councils offer for particular household situations, so ask the billing office whether any apply to you as well.
How Council Tax Reduction Is Worked Out
Council Tax Reduction is means-tested, which means the council compares your income and savings against your circumstances to decide how much of the bill you should pay. You receive a discount on the bill rather than money paid direct to you.
Since April 2013, local authorities have had to set their own schemes for working age people, after the national Council Tax Benefit arrangements were abolished. That means identical households can receive different amounts depending on where they live. For people at state pension age, councils work out support using government-set guidelines instead, taking account of income from state and other pensions, the council tax due and the type of Pension Credit received.
Islington Council’s scheme shows how local rules work in practice. Working age claimants there who are not working and not receiving certain benefits get 95 per cent off their bill, and people in work are placed into income bands, with no support at all above the top band. Your own council should publish its scheme rules and, in many cases, an online calculator.
Some councils recalculate automatically. If you receive Universal Credit, the council is notified when your claim succeeds, and because Universal Credit is reviewed monthly, the amount of Council Tax Support can change when your award changes.
What Evidence to Gather, and the One Month Rule
What you are asked for depends on your circumstances, but first time claimants commonly need identification for you and your partner, your National Insurance number, and proof of income. Councils typically want original documents rather than photocopies, and letters such as DWP award notices or tax code notices can serve as proof of income. If you rent privately, proof of rent may be requested.
You do not always need to send evidence. Many claims are checked against information the council already holds, and if you are claiming Council Tax Reduction only while receiving Universal Credit, some councils say no documents need to go in the post.
If the council does ask for evidence, you normally have one month from making the claim to provide it. If your previous benefit was stopped and you supply the missing evidence within that month, the council may be able to restart it. Miss the deadline and you may have to make a fresh claim.
Helpful step
Send whatever documents you have with the claim form and follow up with the rest as soon as you can. Missing proofs are a common reason claims are delayed, and delays can cost you support.
While the Claim Is Decided
You should receive a confirmation email once the council has your claim, and it will only write again if it needs further documents. Where a claim arrives with complete documentation, some councils say the assessment is generally made within 14 days, after which you will be told of any entitlement and an amount will be credited to your council tax account.
Keep paying something towards the bill in the meantime if you can, and keep the council informed. Report any change that might affect the claim, such as a shift in working hours, a new household member or a change in your benefits, by phone, in writing or through the council’s online services.
Other support may also be worth exploring while you wait, and we explain two options in more detail elsewhere on the site: how local welfare assistance schemes work in Getting Started With Local Welfare Assistance Schemes, and how budgeting loans and advances work in Budgeting Loans and Advances: Interest-Free Help With Essential Costs.
If You Are Already Behind: Arrears and Payment Arrangements
If the bill has already built up, contact the council’s revenues office rather than waiting for reminders, and ask about a payment arrangement that spreads what you owe. The steps councils can take over unpaid council tax vary, so it is worth asking what can be agreed before the account escalates.
If wider debts are piling up and enforcement is a worry, a Breathing Space debt moratorium may be relevant. Our guide, When to Apply for Breathing Space: A Timeline of the Process, walks through how it works and when it applies.
Keep the two sides of your council tax account separate in any correspondence. The reduction claim goes to the benefits team, while arrears and payment arrangements go to the revenues or billing office. Sending questions to the wrong team is a common way for matters to stall.
If Your Application Is Refused
A refusal letter should set out the decision, and you can ask the council for a detailed explanation, but you must apply for one within one month. Read the reason carefully. Refusals often turn on income or savings as assessed under the scheme’s rules, or on evidence that never arrived.
If the problem is missing evidence, ask whether supplying it now allows a fresh claim. If the council declined to backdate, set out your good reason in writing and why you could not claim sooner. If you still believe the decision is wrong, a free adviser such as one at Citizens Advice can help you take it further.
Start today by finding your council’s Council Tax Reduction page and opening the online form, even if some of your documents are still to gather.
Your questions answered
Q: Can I get Council Tax Reduction if I am working?
A: Yes. You can apply whether you own your home, rent, are unemployed or working, and the council will assess your household income, including savings, pensions and your partner’s income.
Q: How long does a Council Tax Reduction claim take?
A: Some councils say that claims arriving with all the supporting documentation are generally assessed within 14 days. Missing proofs are the most common cause of delay.
Q: What happens if I already receive Universal Credit?
A: Many councils are notified automatically when your Universal Credit claim succeeds and will assess your entitlement from that information. Because Universal Credit is reviewed monthly, your Council Tax Support can change when your award changes.
Q: What can I do if my application is refused?
A: Ask the council for a detailed explanation within one month of the decision. If the refusal turned on missing evidence or a claim that was not backdated, supplying the evidence or setting out a good reason in writing may allow the council to look again.
This guide is general information, not financial advice. Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk. We don’t arrange loans or work with lenders. Before borrowing, check the lender is authorised on the FCA register, and consider free debt advice from MoneyHelper, StepChange, National Debtline or Citizens Advice.