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Council Tax Reduction

Council Tax Reduction (CTR) was introduced from 1 April 2013 to replace Council Tax Benefit (CTB), which has been abolished by the UK Government as part of its welfare reform programme.

Responsibility for assisting those who need help to pay their Council Tax in Scotland now sits with the Scottish Government and Scottish Local Authorities.  In line with this transfer of responsibility, and to fund the new arrangements, the UK Government added the total amount of CTB payments in Scotland, less 10%, to the Scottish budget.

The Scottish Government continues to provide additional funding to local authorities to ensure those who previously received CTB could be protected from this 10% cut.

From 1 April 2017, council tax rates and the way in which council tax is calculated will change. Properties in Bands E, F, G and H will be charged a higher percentage of the Band D rate than previously. However, households in these bands whose net income is below the Scottish median for their household type (£16,750 for single person households and £25,000 for others) may be entitled to claim an exemption from the increases to the banding system through the Council Tax Reduction Scheme. Entitlement is dependent on a number of factors, including any capital held and the composition of the household and you should contact the revenue and benefits department in your local authority if you think you may be eligible.

Although the Scottish Government has overall responsibility for making the regulations for the CTR scheme, it is for each Local Authority to administer it for their area.  Any queries on CTR should be directed to the relevant Local Authority who will be able to offer advice on eligibility criteria and how to apply.

Neither Scottish Government officials or Scottish Ministers are able to comment on or intervene in an individual’s CTR application or any decision made by the local authority regarding the application. 

Further information is available on How CTR Works and in Frequently Asked Questions.