Council tax second adult rebate: Little known council tax reduction could cut bill by 25%

Martin Lewis lays out when to expect £150 council tax refund

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The single person discount allows properties with just one adult living in it, or where all other residents are disregarded, to have a cheaper council tax rate. However, the second adult rebate could reduce the bill by the same amount as the single person discount but can count if one lives with other non-disregarded adults.

Council tax is calculated on the basis of a two-adult household, which is why people living alone can get the 25 percent discount. 

Certain people are also disregarded, or do not count, towards the second person for council tax purposes. 

These households are then also able to claim the single person discount if only one person in the house counts for the tax.

Properties where everyone is disregarded can get a 50 percent discount. 

However, the second adult rebate can apply to households with more than one adult, cutting the bill by 25 percent even if everyone in the house counts towards the tax. 

The one vital qualifying criteria for council tax is that only one person in the household is responsible for paying the council tax bill. 

This could make them eligible for a second adult rebate, or alternative maximum CTR.

The reduction is especially useful for people who don’t qualify for other council tax reduction because their capital is too high.

When applying for this discount, one’s local council will need to verify that the claimant has second adults living with them. 

The council will then work out the income for the other adults not responsible for the tax bill.

The less income they have, the more discount potential for the household according to Citizens Advice.

There are varying rates of the discount, with the highest discount being 25 percent, although Britons have to check if they qualify to apply for the second adult rebate. 

Firstly, the other people living with them have to qualify as a second adult, which is someone who is:

  • 18 or over
  • Not their partner
  • Doesn’t pay rent
  • Doesn’t have a contract with the landlord
  • Doesn’t jointly own the home
  • Is on low income or receiving certain benefits. 

People over the state pension age can usually better calculate how much their rebate could be before applying than younger counterparts. 

The amount of discount they receive depends largely on the second adult’s income, not their own income or capital. 

Councils will generally ignore any income from the following benefits in their calculations:

  • Personal Independence Payment
  • Disability Living Allowance
  • Attendance Allowance
  • Armed Forces Independence Payments. 

If the second adult receives one of the following benefits the council tax reduction could be 25 percent:

  • Income Support
  • Pension Credit
  • Income-based Jobseeker’s Allowance
  • Income-related Employment and Support Allowance. 

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