Missing out on millions: how improving Council Tax Reduction take-up could be transformative for older people on a low income

Senior Policy Officer Beth Walters explores new research with Public First and Policy in Practice which reveals just half of eligible older people are receiving Council Tax Reduction.

Our new report *Missing out on millions *paints a dismal picture of Council Tax Reduction take-up in England with just 50% of eligible older people receiving the support.

Older people on low incomes tell us how Council Tax is becoming an increasingly unmanageable expense. Unlike other costs, households cannot reduce their Council Tax bill by making cutbacks or finding better deals.

Council Tax Reduction (CTR) is a discount scheme for people in financial hardship operated by local authorities. For eligible older people, it can reduce their bill to £0. One respondent told us how this “has made the difference between getting into debt and being able to pay all my expenses”.

Despite these potentially significant savings, CTR remains poorly understood prompting low take-up with research showing 1.4 million pensioners missing out in England.

Our findings with Policy in Practice and Public First highlight the transformative impact that increasing CTR take-up could have for older people on a low income and how the UK Government can support local authorities to make this a reality.

If CTR take-up was increased to 100% across Great Britain, 74,000 pensioner households could be lifted out of poverty.

Setting out to explore the barriers limiting take-up, we found that CTR is often confused with other Council Tax discounts, such as the single person discount. Many older people told us how they were unsure of eligibility criteria, with several believing that being over the threshold for Pension Credit meant they would not qualify.

Our conversations with local authorities also highlighted a range of potential barriers to take-up.

Data collection and sharing limitations present difficulties when identifying eligible residents, while fears around scams, social stigma and the risk of Council Tax arrears are common hurdles for local authorities trying to increase the incomes of older people.

But the most significant barrier to CTR take-up is funding. Since 2013, central government has stopped providing like-for-like ring-fenced funding for CTR. Facing already-stretched budgets, local authorities know boosting CTR take-up without better support from central government means they could have less money to spend on wider essential services.

These challenges are reflected in the varying CTR take-up rates across England. Our research found North East England to have the highest take-up at 60% while rates dropped to 46% in South East and South West England. At a local authority level, take-up rates hit 62% at their highest and 39% at their lowest, demonstrating the variation in support being received across the country and the need for change.

The case for improving CTR access is clear but improving take-up is not simply a case of improving practice as many local authorities are doing their best under increasingly challenging financial constraints.

Our report sets out several recommendations for how the UK Government must reform our social security system and better support local authorities to increase CTR take-up. Providing ring-fenced funding, delivering a national take-up strategy, simplifying applications and improving awareness are just some of the ways we can ensure older people receive the financial support they need.

We also urge local authorities to adopt best practice CTR take-up strategies. Accessibility can be improved with translated and offline information, investment in training resources and community visits are crucial while exploring local community partnerships through the Crisis and Resilience Fund could help expand reach.

At a time when the cost of living is continuing to stretch finances, older people on a low income urgently need to receive all the money they are entitled to, including Council Tax Reduction.

You can read our full Missing out on millions report here and check the rate of Council Tax Reduction in your area with our interactive heat maps (local authorities map and regions and nations map).

For support and advice, visit our website or call our free Helpline on 0800 319 6789.