Council tax is being paid "in full" for state pensioners on one benefit from the Department for Work and Pensions (DWP), personal finance experts have confirmed.
Council Tax Reduction Scheme Details
Under the Council Tax Reduction scheme, what you receive depends on your circumstances and where you live. Each local council operates its own scheme, so the amount of support provided across the country may vary.
Age UK Guidance
Age UK states: "If you receive the Guarantee Credit part of Pension Credit you may even get your Council Tax paid in full. If you don't get Guarantee Credit but have a low income and less than £16,000 in savings, you may still get some help."
As of August 2024, approximately 800,000 state pensioners were claiming the Guarantee Credit portion of Pension Credit, which has 1.3 million claimants overall.
Eligibility for Guarantee Credit
If you are not over State Pension age, the Council Tax Reduction you are entitled to is calculated using 'working age scheme' rules, which tend to be less generous. Check these rules with your local council.
Guarantee Credit tops up your weekly income to a guaranteed minimum level. This level is currently £238.00 if you are single and £363.25 if you are a couple. You might be eligible for Guarantee Credit if you have reached State Pension age, which is currently 66 for both men and women but is gradually rising from April 2026.
Money Saving Expert Advice
Money Saving Expert, the site founded by BBC and ITV star Martin Lewis, explained: "If you or your partner are getting the 'guaranteed' part of Pension Credit, your household could be eligible for a full reduction on your Council Tax bill of up to 100%. If you get the 'savings' part of Pension Credit, you may also be eligible for a reduced bill, though not by 100% – how much will depend on what savings you have. And if you live with someone who isn't dependent on you, then the reduction might also be less."
