London council tax discount: How to save money on your bill

When you live in London, your council tax discount, a reduction in the local tax you pay to fund services like waste collection, street lighting, and libraries. Also known as council tax reduction, it’s not a luxury—it’s a lifeline for many who struggle to keep up with rising costs. You don’t need to be rich to qualify. You just need to be living in the city, paying the bill, and meeting basic criteria. Many people don’t even apply because they assume they don’t qualify. But the truth? Thousands in London get discounts every year—some as high as 100%—and you could be one of them.

The council tax exemption, a full waiver for certain households, like those with only full-time students or people with severe mental health conditions. Also known as 100% discount, it’s automatic if you meet the rules—but you still have to tell your council. Then there’s the council tax support, a means-tested benefit that cuts your bill based on your income, savings, and household size. Also known as local council tax reduction scheme, it’s run by your borough and varies by location. In some areas, a single parent on universal credit might pay just £5 a month. In others, it’s higher. That’s why you can’t guess—you have to apply.

Who gets these discounts? Students, people on low income, disabled individuals, carers, and even single adults living alone. If you’re on universal credit, PIP, or ESA, you’re likely eligible. Even if you work part-time or have a small pension, you might still qualify. Your council doesn’t check automatically. You have to ask. And it’s free to apply—no fees, no tricks.

There are also discounts for empty homes, second homes, and properties left vacant after someone dies. If you’re caring for someone full-time, you might get a 25% discount just for being the main carer. If you’re a student, your whole household could be exempt. And if you’re living with someone who’s disabled and needs extra space, you might get a reduction because your home is deemed too big for your needs.

Applying is simple. Go to your borough’s website—whether it’s Westminster, Hackney, Croydon, or Tower Hamlets—and look for ‘council tax discount’ or ‘council tax reduction’. Fill out the form. Upload proof of income, benefits, or student status. Most councils respond in under two weeks. If you’re turned down, you can appeal. And if you’re unsure, call your council’s benefits team. They’re there to help, not to make it hard.

Don’t wait until you’re behind on payments. Don’t assume someone else already claimed it for you. Don’t think you’re not poor enough. The system is designed to help people like you—people who work hard, pay rent, and still struggle to make ends meet. The London council tax discount isn’t a handout. It’s your right.

Below, you’ll find real stories and guides from people who’ve successfully cut their bills, avoided penalties, and kept their homes without stress. Whether you’re a student, a single parent, a retiree, or just trying to stretch your cash further, there’s something here that will save you money.