Discretionary reductions of council tax
A local authority can grant a discretionary reduction on a council tax bill if the taxpayer is in financial hardship.
Local authority discretionary schemes
Each local authority has discretion to reduce the amount a person is liable to pay for council tax.[1]
This is in addition to a local authority's main council tax reduction scheme.
This discretionary reduction can be used to reduce a person's council tax liability by any amount, including to nil.[2]
The discretionary reduction scheme is separate to any reduction the household is entitled to for disabled residents. Read more about disability reductions for council tax on Shelter Legal.
When a local authority can apply a discretionary reduction
A discretionary reduction can be applied whether or not a person is entitled to a reduction through the local authority's main council tax reduction scheme.
A local authority must consider every application for a discretionary reduction on its merits, even if they have a policy on how discretionary reductions will be made.
A discretionary reduction can be applied on an individual basis or for particular groups of people.[3] Examples of particular groups could be people affected by natural disasters, people in receipt of certain benefits, people who are pregnant, or people with empty homes. A local authority must ensure that any provision for particular groups is compliant with equality and discrimination law.
A local authority should consider applying a discretionary reduction if an applicant has a deficit budget based on reasonable expenditure.[4]
Read more about council tax support on Shelter Legal.
Application for a discretionary reduction
Anyone liable to pay council tax in respect of a chargeable dwelling can apply for a discretionary reduction.
Details of how to apply for a discretionary reduction must be included in a local authority's council tax reduction scheme.[5]
There is no prescribed form for making an application for a discretionary reduction. The application can be made by letter, or the local authority might specify a dedicated email address.
Appealing a local authority decision on a discretionary reduction
An application for a discretionary reduction must be dealt with fairly by the local authority. It must follow its own policies when arriving at a decision.
A local authority's failure to follow its policy, or have a policy at all, could form the basis of a complaint to the Local Government and Social Care Ombudsman.
Read more about Local Government Ombudsman complaints on Shelter Legal.
Valuation Tribunal appeals
Appeals about a local authority's decision in a discretionary reduction case are dealt with by the valuation tribunals.
The person liable for council tax must provide evidence in support of their appeal. This evidence must show that council tax is unaffordable because their expenditure is higher than their income.[6]
Read general information about the process for Valuation Tribunal appeals for council tax on Shelter Legal.
Where there is no other route of appeal, a Valuation Tribunal decision can be challenged by way of judicial review. This could be on the basis that the local authority has:
made an irrational decision (that is so unreasonable that no reasonable authority could have come to it), or
fettered their discretion (e.g. by operating a blanket policy)
Specialist advice from a solicitor is needed to prepare a judicial review.
Backdating of discretionary reduction
A discretionary reduction can be applied to both:
a person's current year's council tax liability
council tax arrears
A discretionary reduction can be applied to council tax arrears dating back numerous years and there is no cut off. [7]
Last updated: 26 January 2026