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 underscores the wide variation in rules among the 313 locally administered schemes, each with distinct eligibility criteria and support levels. In some regions, working claimants may benefit from up to £125 monthly reductions in their council tax bills, while similar households in other areas receive minimal to no assistance.
The study also notes a gradual decline in support for working households over time, propelled by shrinking council funding. This reduction often leads to quicker withdrawal of aid as earnings increase, or eligibility thresholds fail to keep pace with the rising cost of living. Concurrent research from Policy in Practice highlights that council tax support remains the most underclaimed benefit in England, with approximately 2.7 million individuals missing out on around £2.8 billion in support.
Dr. Rita Griffiths, a Research Fellow at IPR and the report’s lead author, emphasizes the disparity in council tax assistance based solely on geographical location, stressing the potential negative impact on work incentives and fairness. Additionally, Dr. Marsha Wood, a Research Associate at IPR and co-author of the research, points out that higher earnings do not always translate into improved financial outcomes for working households when council tax support diminishes accordingly.
Proposed reforms include reintroducing a nationally designed system overseen 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.
Joanna Elson, CBE, Chief Executive of Independent Age, expresses concern over the financial strain faced by older individuals on low incomes, particularly due to escalating council tax burdens. She highlights that lack of Council Tax Reduction (CTR) uptake is pushing 74,000 older households into poverty, underscoring the need to ensure that available support reaches those in need.
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