Carer's Allowance and Council Tax Reduction: What Discount Can You Get?

Council Tax Disregard for Carers

If you receive Carer's Allowance — even if it is not paid because a higher overlapping benefit like the State Pension takes priority — you may be disregarded for council tax purposes. A disregarded person is treated as though they do not live in the property when the council counts how many adults are resident.

If the only other adult in the property is also disregarded (for example, the severely disabled person you care for, who qualifies for a Severe Mental Impairment disregard), the household could qualify for a 25% single-person discount. If all adults are disregarded, the Council Tax bill is usually reduced by 50%, not fully exempted.

The rules vary slightly between councils, but the carer disregard applies to people who provide care for at least 35 hours a week and live in the same property as the person they look after (as long as that person is not their spouse, partner, or a child under 18).

Council Tax Reduction Schemes

Separate from the carer disregard, every council in England runs its own Council Tax Reduction (CTR) scheme for people on low incomes. In Wales, the scheme is national. In Scotland, it is called Council Tax Reduction. Northern Ireland does not have council tax — it uses domestic rates instead, with a separate rate relief scheme.

Carer's Allowance counts as income for CTR assessments, but having a caring responsibility often qualifies you for higher premiums or allowances within the calculation, which can increase the reduction you receive. A household where one person receives Carer's Allowance and the other receives a qualifying disability benefit frequently qualifies for the maximum CTR.

To apply, contact your local council directly or apply online through their website. You will need to provide proof of your Carer's Allowance award and your household income.

Housing Benefit and the Carer Premium

If you are still on Housing Benefit (rather than Universal Credit), receiving Carer's Allowance — or having underlying entitlement to it — qualifies you for the carer premium within the Housing Benefit calculation. The carer premium increases the amount of income you are allowed to have before your Housing Benefit starts to be reduced, effectively increasing your total award.

As more claimants are moved to Universal Credit under managed migration, Housing Benefit is being phased out for most working-age households. On Universal Credit, the equivalent is the carer element (£209.34 per month in 2026/27), which is added to your UC maximum amount. See our Carer's Allowance and Universal Credit post for how that interaction works.

What to Do After Getting Your Carer's Allowance Decision

Once DWP awards your Carer's Allowance (or confirms underlying entitlement in your decision letter), contact your local council to:

• Report the change of circumstances if you already receive Council Tax Reduction
• Apply for CTR if you have not already
• Ask whether the carer disregard applies to your household

Keep a copy of your Carer's Allowance decision letter — the council will want to see it. If you also care for someone with a severe mental impairment, ask the council about the SMI disregard for the person you look after, as combining both disregards can significantly reduce or eliminate the bill.

Our Carer's Allowance Claim Guide explains the full range of additional benefits that Carer's Allowance unlocks, including council tax discounts, Pension Credit additions, and NI credits, so you do not miss anything the award entitles you to.

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