Council tax reduction scheme helps households save £3.5bn

Council tax reduction scheme helps households save £3.5bn

Tom Arthur

Scottish households have saved more than £3.5 billion in council tax since the Council Tax Reduction (CTR) scheme was introduced a decade ago.

The latest figures published by the Scottish Government show 460,860 recipients received CTR in October 2023, meaning one-in-five households were benefiting from the scheme.

People on low incomes are eligible for CTR if they live in Scotland – there is no equivalent benefit in England where most councils require each household to contribute a minimum amount of council tax, irrespective of ability to do so.

People who receive CTR save on average £800 a year and become eligible for up to 35% off their water and waste charges.

As part of the 2024-25 Scottish Budget, the Deputy First Minister also made £144 million available to enable local authorities to freeze Council Tax rates at their current levels, benefitting every Council Tax payer in Scotland.

Public finance minister Tom Arthur said: “The Council Tax Reduction scheme celebrated its tenth anniversary in April and these latest figures show the scale of support it has provided to people in Scotland over the last decade.

“Our social contract with the people of Scotland means we are committed to giving an extra helping hand through targeted additional support to those who need it most and it is important everyone is aware of the help that is available to them.

“Some people are also eligible for other council tax discounts or sometimes full exemptions, including students, people with disabilities and carers amongst others.

“I urge people to check their eligibility for council tax reduction, council tax discounts and other financial support by visiting our online resources or by contacting their local council.”

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