Council Tax Reduction: pensioners on Pension Credit may have their bill cut to zero

Pensioners on low incomes may be able to pay less Council Tax, and in some cases nothing at all. Polish Express reported on 23 October 2026 that people receiving the pension top-up Pension Credit can apply for a reduction of up to 100%. The outlet says many eligible people are not claiming this support.

How the reduction works

The scheme is called Council Tax Reduction (some councils call it Council Tax Support). It is help for people on low incomes or receiving certain benefits. The charity Independent Age is encouraging pensioners to check whether they qualify.

The reduction is not awarded automatically. You usually have to apply to your local authority, meaning the council that sends your Council Tax bill.

Who can get the most

According to Polish Express, people receiving the Guarantee Credit part of Pension Credit may qualify for maximum support. Their Council Tax bill can be reduced to zero. People who do not receive the full Guarantee Credit may also be entitled to a reduction, depending on their income, savings and household situation.

The support is not limited to homeowners: tenants can also apply if they have to pay Council Tax.

The rules for people of pension age are set nationally. As a result, older residents are generally better protected than working-age people, who may get up to 100% support depending on their circumstances.

What determines the amount

The size of the reduction depends on factors including:

• household income,
• savings – usually under £16,000, unless you receive Pension Credit,
• who else lives in the household.

Somerset Council describes it in a similar way: a person of Pension Credit age on a low income may get support that cuts the bill by up to 100%. The council also says that without Pension Credit (Guarantee Credit) you will not usually qualify if you have more than £16,000 in savings. If you do not qualify, you may still be able to claim a Second Adult Rebate, which cuts the bill by up to 25% if another adult living in the home meets the conditions.

What this means for you

If you, your parents or other older relatives receive Pension Credit and pay Council Tax, it is worth checking whether you are entitled to a reduction. You apply to the council for the area where you live; its website should set out the rules and the application form. The exact conditions and the way to apply may differ between councils.