Struggling households across England are facing significant disparities in council tax support, according to recent research findings. The University of Bath’s Institute for Policy Research (IPR) report reveals that there are currently 313 distinct locally administered schemes, each with its own set of eligibility criteria and support levels. This results in varying levels of assistance, with some working claimants in certain areas receiving monthly council tax bill reductions of up to £125, while similar households in other regions receive minimal or no support.
Furthermore, the study indicates a gradual reduction in support for working households over time due to tightening council funding. As a consequence, many schemes withdraw assistance more rapidly as earnings increase, or the eligibility thresholds fail to keep up with rising living expenses. In a separate study by Policy in Practice, it was found that council tax support is the most underclaimed benefit in England, with around 2.7 million individuals missing out on approximately £2.8 billion in support.
Dr. Rita Griffiths, a Research Fellow at the IPR and the lead author of the report, emphasized the disparities in council tax assistance based solely on geographical location. She highlighted that sharp cut-off points in support as income rises can penalize individuals who start a job or work longer hours, potentially undermining work incentives and raising concerns about fairness in providing aid to low earners. Dr. Marsha Wood, a Research Associate at the IPR and co-author of the research, underscored that higher earnings may not always lead to improved financial outcomes for working households if council tax support diminishes as a result, emphasizing the need to examine the systemic interactions within the support framework.
The report suggests several reform options, including the reintroduction of a nationally designed system, managed by local authorities, or integrating council tax support into Universal Credit. The research, conducted between May and October 2025, involved a survey of 160 working Universal Credit claimants, follow-up interviews with 30 participants, and consultations with local authorities and advice organizations.
Independent Age Chief Executive Joanna Elson, CBE, expressed concern over the financial strain faced by older people on low incomes, attributing rising Council Tax as a factor pushing many pensioners deeper into financial hardship. She highlighted that lack of Council Tax Reduction (CTR) uptake is keeping around 74,000 older households in poverty, emphasizing the need for accessible support to prevent cutbacks on essentials like food and heating.
By selecting Daily Mirror as a ‘Preferred Source’ on Google News, readers can access their preferred news content quickly.