Millions of unpaid carers across England and Wales are being urged to review their council tax eligibility after dozens of local authorities corrected inaccurate guidance on carer discounts. The changes follow an investigation which found that many councils had failed to update their information after rule changes introduced in 2013.
According to MoneySavingExpert, the incorrect guidance may have discouraged carers from claiming reductions worth between £500 and £1,000 a year. Martin Lewis has now encouraged anyone who previously believed they were not entitled to support to check their eligibility again and consider requesting backdated discounts where possible.
The issue centres on the live-in Carer Council Tax discount, which allows some unpaid carers to be disregarded for council tax purposes. In households where the carer and the person receiving care are the only residents, this can reduce the bill through the 25% single person discount. In some circumstances, the reduction may be greater if the person receiving care also qualifies for a Severe Mental Impairment disregard.
According to the latest Census data referenced by MoneySavingExpert, around 5.8 million people in the UK are unpaid carers. The investigation found that one in five council websites in England and Wales displayed incomplete or incorrect information about who qualified for the support.
Councils Updated Guidance after Investigation
MoneySavingExpert said it reviewed the online information of more than 200 councils and found that 69 authorities had published incorrect or incomplete qualifying criteria. A further 80 councils did not provide easily accessible information online about the relevant disability benefits linked to the discount.
The investigation, published in January 2026, focused on councils that had not fully reflected reforms introduced in 2013. Before those changes, only certain higher-rate disability benefits qualified for the discount. The reforms widened eligibility to include lower-rate Attendance Allowance, middle-rate Disability Living Allowance care components, Armed Forces Independence Payment, and both standard and enhanced daily living components of Personal Independence Payment.
According to MoneySavingExpert, many councils continued to state that only higher-rate benefits qualified, while some failed to mention Personal Independence Payment at all. The organisation said this had potentially been the case for more than a decade.
Following the findings, the Government wrote to English councils in February 2026 encouraging authorities to ensure their council tax support information was accurate and up to date. MoneySavingExpert has since confirmed that all 69 councils identified in the investigation have amended their websites.
Martin Lewis described the situation as “a disgrace”, saying unpaid carers had likely been deterred from seeking support. He also said carers who had previously checked council guidance and assumed they were ineligible should review the updated information.
Eligibility Rules and Calls for Backdated Claims
To qualify for the live-in Carer Council Tax discount, applicants must provide at least 35 hours of unpaid care each week to someone living in the same household. The person receiving care cannot be the applicant’s spouse, partner or a child under 18.
The individual receiving care must also be claiming one of several qualifying disability-related benefits. These include Attendance Allowance, Disability Living Allowance care components, Personal Independence Payment daily living components, Armed Forces Independence Payment, Constant Attendance Allowance and Disablement Pension at specified rates.
According to Carers UK, the clarification of eligibility rules could make a significant difference to unpaid carers already facing financial pressure. Helen Walker, chief executive of the charity, said many carers struggle with increased household costs and reduced working hours linked to caring responsibilities.
Martin Lewis has advised carers who may have missed out due to incorrect council information to ask about backdated discounts covering the period from when they first became eligible. He noted that councils may apply different rules on how far claims can be backdated.
