Nearly half a million households across Scotland are currently benefiting from a Council Tax reduction, helping them save an average of over £850 per year. According to official figures published by the Scottish Government for March 2025, approximately 458,120 households are receiving support through the Council Tax Reduction (CTR) scheme.
This initiative is designed to assist those on a low income or facing financial hardship. Unlike other areas of the UK, this support is unique to Scotland, with eligible households not only receiving tax reductions but also discounts on water and waste charges. The figures highlight the scope of the scheme and its effectiveness in providing financial relief.
According to the Daily Record, the average savings per household amount to £850 annually.
One in Five Scottish Households Receive Support
The Council Tax Reduction (CTR) scheme has a broad reach. Figures indicate that one in five households across Scotland are currently receiving financial support through the initiative. This includes not only those on very low income, but also some middle earners and individuals in higher property bands who may be struggling to meet monthly obligations.
Eligibility is based on several factors, including income, savings, benefits received, and household composition. In some cases, households may qualify for a partial reduction. For instance, those receiving the Guarantee Credit part of Pension Credit can receive a full exemption from Council Tax payments.
“One-in-five households in Scotland are benefiting from the Council Tax Reduction scheme, which shows just how vital this support is for households facing financial pressure – said a Scottish Government spokesperson.”
Local authorities across Scotland manage the scheme, and support levels can vary depending on local policies. Residents are encouraged to contact their council to determine eligibility and begin the application process.
Exemptions and Special Discounts for Vulnerable Groups
There are a number of exemptions and discount categories that apply under the Council Tax system in Scotland. Individuals who may qualify for full exemption include full-time students, those living in care homes, hospital patients, and individuals with a severe mental impairment such as dementia.
People living alone may receive a 25% discount, regardless of income level. This also applies in households where all but one person is disregarded for tax purposes — for instance, where the other occupant is a full-time student or under the age of 18.
Carers who provide at least 35 hours of weekly care and meet specific criteria may also be excluded from the household count for Council Tax purposes. However, this does not apply if the person being cared for is the carer’s partner or a child under 18.
How to Reduce Your Monthly Council Tax Burden
In addition to applying for a reduction, households can manage their payments to ease financial pressure. One option is to spread Council Tax payments over 12 months instead of 10, which lowers monthly costs. Some councils may also offer a small discount for those who pay the full annual amount in advance.
Residents whose homes have decreased in value due to permanent changes — such as the installation of disability adaptations or nearby infrastructure projects — may apply to have their property rebanded, potentially leading to a lower Council Tax bill.
If you’re looking to apply for a Council Tax Reduction or discount, you can contact your local authority. Here are some of the councils across Scotland that manage the scheme: Inverclyde, Renfrewshire, West Dunbartonshire, East Dunbartonshire, Glasgow, East Renfrewshire, North Lanarkshire, Falkirk, West Lothian, Edinburgh, Midlothian, East Lothian, Clackmannanshire, Fife, Dundee, Angus, Aberdeenshire, Aberdeen, Moray, Highland, Na h-Eileanan Siar, Argyll and Bute, Perth and Kinross, Stirling, North Ayrshire, East Ayrshire, South Ayrshire, Dumfries and Galloway, South Lanarkshire, Scottish Borders, Orkney, and Shetland.
Each local authority provides specific information and application forms on their website. The Scottish Government also maintains a dedicated cost of living support portal where residents can find further assistance with energy, food, and essential costs.
Applying for a Council Tax Reduction can provide meaningful relief for individuals and families on a low income. Whether through a full exemption, a partial discount, or changes in payment terms, the scheme offers targeted financial support to help households stay on track.
