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 the wide variation in rules governing council tax support schemes, with 313 distinct locally administered schemes each having unique eligibility criteria and support levels. In some areas, working claimants may benefit from reductions of up to £125 per month on their council tax bills, while similar households in other regions receive minimal to no assistance.
The study also highlights a gradual decline in support for working households over time due to constrained council funding. As earnings increase, many schemes reduce assistance or fail to keep up with rising living costs. Additionally, separate research by Policy in Practice indicates that council tax support is the most underutilized 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 lead report author, emphasized the disparity in support levels based solely on geographic location, affecting individuals with similar earnings and household situations. She expressed concerns about abrupt reductions in support as incomes rise, potentially leaving people worse off after securing employment or working additional hours. Dr. Marsha Wood, a Research Associate at IPR and co-author of the study, underlined the adverse impact of diminishing council tax support on financial outcomes for some working households, emphasizing the need to examine the system’s interconnected components.
The report suggests potential reforms, such as reintroducing a nationally designed system administered by local authorities or integrating council tax support into Universal Credit. Conducted between May and October 2025, the research 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, raised concerns about low-income older individuals struggling with rising council tax burdens, pushing many pensioners further into financial distress. She highlighted the underutilization of Council Tax Reduction (CTR), keeping 74,000 older households in poverty and necessitating cutbacks on essentials like food and heating to cover council tax bills, despite available support options.
