Council Tax Rule Change in England Could Slash Bills to Zero for 74,000 Households

State pensioners across England are missing out on up to £1.71 billion in council tax relief, warns a new report from Independent Age. The charity’s analysis highlights a significant gap in access to Council Tax Reduction (CTR) for older people on low incomes, urging the government to ensure every eligible pensioner receives this vital support.

According to the report, “Missing out on millions,” just 50% of pensioners entitled to CTR are currently claiming it, meaning tens of thousands remain unreached. If the government were to provide a council tax discount to all eligible individuals above state pension age, an estimated 74,000 older households could be lifted out of poverty.

Independent Age chief executive Joanna Elson emphasizes the urgency of the issue: “Rising council tax bills are pushing many pensioners deeper into financial hardship. Our research reveals that nearly three-quarters of older households missing out on CTR are being forced to cut back on essentials like food and heating.”

Elson calls for improved promotion and increased funding: “Both Government and local authorities must work together to raise awareness of CTR and ensure it is accessible. To genuinely improve living standards, the Government must boost support for local authorities to effectively deliver these reductions, lifting tens of thousands of older people out of poverty.”

On average, Council Tax Reduction can reduce a bill of £2,392 to zero for low-income households, saving them roughly £46 a week. One 66-year-old recipient from Birmingham shared, “If I hadn’t applied, I’d be paying over £900 a year in council tax. The support I receive means I can afford to keep warm through winter, manage unexpected expenses, and buy fresh, healthy food.”

With millions of pounds of relief unclaimed, ensuring all eligible pensioners access CTR could provide substantial financial relief and improve quality of life for thousands across England.