UK households may be able to reduce their council tax to £0 for the year. This warning was issued as an alarming 1.3 million families struggled to pay their Council Tax bills in 2024-2025, prompting experts to urge households file claims.
Collection Processes Under Fire as Council Tax Arrears Hit Historic High
Given the struggles taxpayers in the UK have to face, the head of debt at the Centre for Social Justice (CSJ), Matthew Greenwood, expressed his discontent especially when it comes to the current collection process, suggesting that it often fails both local authorities and taxpayers.
He argues: “The further steep rise in council tax arrears to a historic high of £6bn is yet more evidence that in many cases, the process of collection is failing local authorities and taxpayers alike.
“Some people won’t pay their council tax even though they have the money, and they should face the full force of the law. But our evidence shows that the majority of non-payers are unable to meet their commitments and the often harsh repayment methods used by many local authorities are making repayment rates worse, not better.
“Adopting a more proportionate collection system would drive up the amount of money brought in by councils in the long term. Enforcement is an invasive procedure by its nature, and putting the Enforcement Conduct Board on a statutory footing would ensure that vulnerable households have practical recourse to protection should things go wrong.”
Who Can Benefit from a Council Tax Reduction?
Each council is free to manage its own scheme. Your location along with your circumstances may determine what you qualify for.
Your circumstances for example may include your income, the number of children that you have, the benefits you receive and your residency status.
The new Labour Party government stated: "You could be eligible if you’re on a low income or claim benefits. Your bill could be reduced by up to 100 per cent. You can apply if you own your home, rent, are unemployed or working.
The government went on to clarify that what you can get may also depend on whether your children or other adult live with you.