State pensioners council tax discount update as Treasury shares response

Rachel Reeves’ department issues a statement following a surge in public support for state pensioners to get reductions in their council tax

A major development has emerged for activists fighting to secure council tax relief for every UK state pensioner. Momentum has been building dramatically for a petition on the Parliament website, which has now smashed past the 10,000 signature milestone.

The Treasury, under Chancellor Rachel Reeves’ leadership, has now issued an official statement providing clarity on whether any discount schemes are in the pipeline. The petition, launched by David Papworth, argued: “I feel that current council tax rates do not take pension incomes into account. This means some pensioners are having to pay what I think is a very significant percentage of their pension towards council tax.”

He continued: “When many pensioners have worked for 50-odd years, paid into a pension, bought their own house, then retire on a lower income, I do not think they should have to pay such a significant amount of council tax.”

But in a crushing setback for campaigners, Treasury bosses have declared there are “no plans” for sweeping reforms at present, while highlighting that exemptions already exist for those most in need. Officials also pointed to various forms of support already available to Britain’s most vulnerable residents.

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The response said: “The Government requires councils to provide council tax support so the lowest-income pensioners do not pay council tax. There are no plans for a mandatory council tax discount for all pensioners.

“Councils provide over 800 vital local public services to millions of people across the country. Council tax is an essential component of their funding, without which councils would not be able to meet their legal responsibilities.

“To ensure fairness in the system, there are a range of discounts and exemptions to reflect personal circumstances. Councils are required to put in place a centrally prescribed support scheme for pension-age households.

“This ensures that the lowest-income pensioners are not required to make any contribution towards their council tax. In March 2025, 1.4 million claimants were being supported by the pension age local council tax support. The government has no plans to introduce a mandatory discount for all pensioners.”

The Treasury highlighted several measures currently benefiting pensioners, noting that this year, the Government will invest upwards of £174bn directly into state pensions and other pensioner benefits in Great Britain. It also pointed out that the full rate of the new State Pension has climbed to £230.25 weekly, amounting to more than £12,000 annually, after an uplift in line with average earnings growth, reports the Express.

The statement added: “The basic State Pension has also increased to £176.45 per week, which is over £9,200 per year. These increases reflect our commitment to the Triple Lock and to protecting pensioners from the rising cost of living.

“The Government’s commitment to maintaining the Triple Lock throughout this Parliament will mean the annual spending on people’s State Pensions is forecast to rise by around £31bn and this will see pensioners’ yearly incomes being up to £1,900 higher by the end of this parliament.

“Supplementary benefits provide additional support, including Pension Credit (which guarantees a minimum level of income for low-income pensioners). Pensioners receiving Pension Credit also to receive other benefits (help with council tax, fuel bills and a free TV licence for those over 75).”

It also drew attention to the Winter Fuel Payment, which will be available to all those over State Pension age in England and Wales with an income at or below £35,000 each year. This benefit was restored to nine million pensioners earlier this year by Chancellor Rachel Reeves.

The report also highlighted other key benefits for low-income pensioners, such as the Warm Home Discount (a rebate on energy bills), Housing Benefit (assistance with rent), and Discretionary Housing Payments.

The Household Support Fund in England offers discretionary aid for essential costs, a scheme that the Government has extended until March 31, 2026. Pensioners are also entitled to free eye tests and NHS prescriptions, along with complimentary bus passes.

If a petition reaches 100,000 signatures, it could potentially spark a debate in Parliament, according to HM Treasury. Click here to view the full response and support the petition.

Pensioners are subject to standard council tax unless they’re eligible for a reduction. Also known as Council Tax Support, this is a benefit designed to assist those on a low income or claiming certain benefits to pay their Council Tax bill.

Whether you own your home or rent, and regardless of your employment status, you can make a claim. Those on a low income or receiving certain benefits may qualify for Council Tax Reduction.

However, eligibility varies by area and what one might be eligible for is determined by the local council. As each council sets its own rules, individuals should check the regulations in their area.