Struggling households across different regions in England are facing significant disparities in council tax support, according to recent research. The University of Bath’s Institute for Policy Research (IPR) report reveals that there are 313 distinct local schemes offering varying levels of assistance, with eligibility criteria differing widely.
The study highlights that some working claimants in specific areas could benefit from up to £125 per month in council tax reductions, while similar households elsewhere receive minimal or no support. The research also indicates a gradual decline in support for working households over time due to reduced council funding. This has led to quicker withdrawal of assistance as incomes rise, causing some individuals to miss out on essential support.
Council tax support is identified as the most underclaimed benefit in England, with approximately 2.7 million people missing out on around £2.8 billion of available support. Dr. Rita Griffiths, a Research Fellow at IPR and lead author of the report, emphasizes the stark discrepancies in support levels based solely on geographical location, raising concerns about fairness and consistency in assistance provision.
Dr. Marsha Wood, a Research Associate at IPR and co-author of the study, points out that higher earnings do not always result in improved financial outcomes for working households if council tax support diminishes as a consequence. The report suggests various reform options, such as reintroducing a nationally designed system or integrating council tax support into Universal Credit, to address these issues.
The findings, based on research conducted from May to October 2025, including surveys and interviews with Universal Credit claimants and discussions with local authorities, underscore the pressing need for reform to ensure equitable support for low-income households. Joanna Elson, CBE, Chief Executive of Independent Age, highlights the financial strain faced by older individuals on low incomes, urging for better utilization of council tax relief to alleviate poverty among vulnerable populations.