Millions of households are missing out on council tax help worth over £1,000 a year. A quick check could make a real difference.
Council tax is one of those bills we just expect to pay. It lands, we sigh, and we pay it. Or we struggle to. But millions of households are paying more than they need to, often without realising it.
In 2025/26, more than 2.5 million households are expected to miss out on Council Tax Reduction. On average, that support is worth £1,286 a year.
Why are people missing out?
A big reason is confusion.
Many of us assume council tax help just carries on, especially if we move onto Universal Credit. Under older benefit systems, support often felt more joined up. With Universal Credit, it isn’t.
Council Tax Support is not part of Universal Credit. It’s run by our local council, and we have to apply for it separately. There’s often no clear reminder, and no warning if support stops.
It’s rarely about people doing something wrong. It’s about people not being told clearly that council tax works differently now.
Why this matters right now
Council tax is treated as a priority bill. If we don’t pay it, councils can take us to court, add extra costs, or use enforcement agents to recover the debt. That pressure can build quickly, especially when money is already tight.
Research shows that people who don’t get Council Tax Support are far more likely to fall into arrears. That’s council tax people haven’t been able to pay, which has turned into debt. Across the UK, arrears now total over £8 billion.
Claiming support early can stop debt before it starts.
Could this apply to us?
We might be able to get Council Tax Support if we:
- are on a low income
- receive Universal Credit or Pension Credit
- have had a drop in income or hours
- have savings under £16,000 (this can vary by council)
For some households, the bill can be reduced significantly. In some cases, it can be wiped out completely.
What we can do
If we live in England, Wales or Scotland, we can apply for Council Tax Reduction here.
In Northern Ireland, there is no council tax in the same way. Instead, households pay rates, and help is available through Rate Relief schemes for people on low incomes or Universal Credit. Click here for more information.
If we want an idea of what we might get before applying, the Quids in! Benefits Calculator can help. It’s also useful to have our income and household details to hand.
