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Council Tax Reduction after job loss: how to apply

7 min read · Updated 26 May 2026

Council Tax Reduction (CTR) is one of the most under-claimed forms of household support in the UK. After a job loss, many people qualify for a significant reduction — sometimes 100%. CTR is run by each local authority, not DWP, so you have to apply separately from Universal Credit. This guide explains how it works, what to provide, and what to do while you wait.

What Council Tax Reduction is

Council Tax Reduction is a local scheme that lowers your council tax bill based on your household income, savings, and circumstances. It replaced the old Council Tax Benefit in 2013. Each council sets its own rules, so the same household can get different awards in different parts of the country.

Pensioners are protected by a national scheme. Working-age claimants depend entirely on the local council's rules.

How to apply

  • Go to your local council's website — search 'Council Tax Reduction' plus your council name.
  • Apply online if possible — paper forms take longer to process.
  • Have ready: council tax account number, household income details, bank statements, ID, tenancy agreement or mortgage statement.
  • Mention any changes since your last bill — redundancy, partner income changes, new childcare costs.

Most councils backdate awards to the date you claimed, not the date you became eligible. Apply as soon as you can — every week of delay can mean a week of bill you needn't have paid.

What to do while you wait

  • Phone the council to set up a temporary payment plan, not stop paying entirely.
  • Avoid missed payments — councils can ask for the full year's bill in one go after a missed instalment.
  • Keep a copy of your application reference number.
  • If you're awarded CTR, ask for the new bill in writing.

Second Adult Rebate

If you live with another adult who isn't your partner — an adult child, a relative — and they're on a low income or benefits, you may qualify for a Second Adult Rebate instead of (or as well as) CTR. Ask your council whether it operates this scheme.

Common situations

  • If you live alone: you should also have a 25% single person discount — separate from CTR.
  • If your partner still works: CTR may give a partial reduction even with a working partner.
  • If you have savings over £16,000: most councils still consider applications. Don't assume rejection.
  • If a non-dependant adult lives with you: deductions may apply, but small.
  • If you're severely mentally impaired or have a carer: extra discounts may apply.
  • If you've recently moved: apply in the new council area as soon as you arrive.

What you may want to do next

  • Apply through your council's website today — it takes about 30 minutes.
  • Use the checker to see what other support you may qualify for alongside CTR.
  • Speak to Citizens Advice if your council refuses and you think it's wrong — you can appeal.

Find out what you may be entitled to

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Frequently asked questions

Sources and further reading

Practical next steps

Calm, ordered actions you can take now. Pick the one that fits where you are today.

  1. Start the free benefit check

    Indicative results in about five minutes. No login.

  2. Explore the redundancy support hub

    Step-by-step cornerstone guidance for the weeks after redundancy.

Common situations

People reading this guide often find one of these situations close to theirs.

Explore the redundancy support hub

Step-by-step guidance, tools and deeper articles for the weeks after redundancy.

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