Struggling households across England are facing significant disparities in council tax support, as revealed by recent research. The University of Bath’s Institute for Policy Research (IPR) report highlights the existence of 313 distinct local support schemes with varying criteria and assistance levels. In certain regions, working claimants can benefit from up to £125 monthly reductions in their council tax bills, while similar households in other areas receive minimal to no support.
The research indicates a gradual decline in support for working households over time due to constrained council funding. Many schemes now withdraw assistance more rapidly as incomes increase, leading to disparities and inequities in support provision. According to Policy in Practice, council tax support stands as 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 IPR and the report’s lead author, emphasizes the stark differences in council tax support levels based solely on geographical location. Dr. Marsha Wood, a Research Associate at IPR, underscores the adverse impact of diminishing council tax support on working households, where higher earnings may not necessarily result in improved financial outcomes.
The report proposes various reform options, including reintroducing a nationally designed system overseen by local authorities or integrating council tax support into Universal Credit. The findings, based on research conducted between May and October 2025, involve surveys, interviews with Universal Credit claimants, and consultations with local authorities and advice organizations.
Joanna Elson, CBE, Chief Executive of Independent Age, expresses concern over the financial challenges faced by older individuals on low incomes, citing the burden of rising council tax pushing pensioners further into hardship. Elson notes that lack of Council Tax Reduction (CTR) uptake is keeping thousands of older households in poverty, highlighting the need for improved support mechanisms.