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Everything you need to know about Council Tax

27 Feb 2025

You may soon get your new Council Tax Bill for 2025/2026. Our Money Matters team share some information about Council Tax and where you may be able to get reductions to your payments.  

What is Council Tax? 

Council Tax is an annual fee you pay to your local council. The cost is set by your council and goes towards funding local services. 

How much does it cost? 

The amount of Council Tax you pay depends on the value of your home and where you live. 

Find your local council and how much you need to pay on Gov.uk. 

Can I reduce my payments? 

You might be able to get a reduction on your Council Tax if you are: 

  • On a low income. 

  • A student or you live with students. 

  • Live alone or are the only adult in your home. 

  • Get certain benefits, such as Jobseekers Allowance, Income Support, Pension Credit, Employment and Support Allowance and Universal Credit. 

  • Someone you live with has a disability and as a result needs to live in a larger home. 

  • Severely mentally impaired or living with someone who is. For example, people who have been diagnosed as suffering with severe and enduring mental health issues such as Alzheimer's disease, other forms of dementia and strokes.  

  • A member of the armed forces, depending on your circumstances. 

  • Moved into a care home or hospital. 

  • In prison – unless you’re serving a prison sentence for failing to pay Council Tax 

Most councils allow you to choose whether you want to spread your Council Tax payments over 12 months instead of the usual 10 months.  

Just ask your council if they offer this option. Making the same payment every month might make it easier for you to budget better. If you pay in 10 instalments, you won’t pay any in February and March. 

Helpful resources:  

Council tax arrears | Council tax bailiffs | National Debtline 

Council tax - Citizens Advice 

Council Tax Arrears. Get Free Debt Advice. StepChange 

If you’d like to chat about your finances, our Money Matters team are here to help. You can email the team at moneymatters@lfha.co.uk or call on 0113 386 1000.