More than 1.4 million pensioners in England could be missing out on council tax support, according to research cited by Policy in Practice and Independent Age. For some eligible households, the reduction can cover up to 100% of the council tax bill, depending on income, circumstances and the local authority’s rules.
Who could qualify for a council tax reduction?
Council tax support is generally aimed at people on low incomes or receiving certain benefits. Pensioners receiving the guaranteed credit element of Pension Credit may qualify for a reduction of up to 100%, although the exact amount depends on their circumstances, including who they live with.
Other pensioners may also qualify through their local council’s means-tested scheme without receiving Pension Credit. Eligibility and the amount available vary between councils, so households need to check the rules that apply in their area.
Millions could be missing out on support
Research from Policy in Practice and Independent Age suggests that only around half of eligible pensioners are receiving council tax support. The organisations estimate that around £1.7 billion in potential support is going unclaimed across England.
Independent Age has also estimated that more than 900,000 pensioners may be missing out because they believe they must receive Pension Credit to qualify. The research indicates that take-up is particularly low among pensioners eligible through their local council’s standard means-tested route.
A full reduction could remove the council tax bill
The average council tax bill in England is around £2,392 a year, according to the figures cited in the report. For a pensioner receiving a 100% reduction, that could mean the entire eligible council tax bill is covered.
A partial reduction can also lower the amount a household has to pay. Savings and income are taken into account when councils assess applications, with rules varying depending on the local authority and the claimant’s circumstances.
Pension Credit can also provide extra income
Pensioners who have a low income can check whether they qualify for Pension Credit, which is separate from council tax support. According to GOV.UK, Pension Credit provides extra money for people who have reached State Pension age and meet the eligibility conditions.
Applications can be made up to four months before reaching State Pension age. After reaching State Pension age, claims can generally be backdated by up to three months if the eligibility conditions were met during that period.
Applicants need information about their income, savings and investments, as well as their National Insurance number and bank details.
How to check your council tax support
Households should first identify their local council and check its council tax reduction scheme. Applications are made directly through the relevant local authority. The council will assess the household’s income, savings, living arrangements and other circumstances under its own rules.
People who think they may qualify should not assume that receiving or not receiving Pension Credit automatically determines their council tax position.
How to apply for Pension Credit
Pension Credit applications can be made online through GOV.UK, by telephone or by post. The government also advises people who need help with the application to contact organisations such as Citizens Advice or Age UK.
The Pension Credit claim line is 0800 99 1234. Checking eligibility for both Pension Credit and local council tax support can help pensioners establish whether they are entitled to financial assistance with their household costs.
