Struggling households across different regions in 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 313 distinct local council tax support schemes in England, each with varying eligibility criteria and levels of assistance. In some areas, working claimants may benefit from up to £125 monthly reductions in their council tax bills, while similar households in other regions receive minimal to no support.
The study also indicates a gradual decline in support for working households over time due to constrained council funding. This reduction is primarily seen in the quicker withdrawal of assistance as earnings increase, or eligibility thresholds failing to keep pace with living expenses. Despite being one of the most underclaimed benefits in England, council tax support remains underutilized, with approximately 2.7 million individuals missing out on around £2.8 billion in support, as highlighted in separate research by Policy in Practice.
Dr. Rita Griffiths, a Research Fellow at the IPR and lead author of the report, emphasizes the stark differences in council tax support received by individuals with similar incomes and household situations based solely on their residential location. The report suggests that abrupt cutoff points in support as income rises can lead to certain individuals being worse off after securing employment or increasing work hours, raising concerns about fairness and consistency in providing assistance to low-income earners.
Dr. Marsha Wood, a Research Associate at the IPR and co-author of the research, underscores that higher earnings do not always translate into improved financial outcomes for working households if council tax support diminishes as a result. This underscores the necessity of examining how different components of the system interact with each other.
The report proposes various reform options, including reintroducing 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 advisory organizations.
Joanna Elson, CBE, Chief Executive of Independent Age, expresses concerns about older individuals on low incomes facing financial strain, with rising Council Tax exacerbating hardship. She highlights that a lack of Council Tax Reduction (CTR) uptake is leaving 74,000 older households in poverty, emphasizing the importance of ensuring that available support reaches those in need.
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