Council Tax Reduction › Council Tax Reduction and Disability
Council Tax Reduction and Disability
Last updated: April 2026 · Reviewed by: Silverwings Benefits Team · Source: GOV.UK
If you or someone in your household is disabled, there are actually several different ways your council tax bill could come down — and they can often be combined. Alongside means-tested Council Tax Reduction itself, most councils run a separate disability reduction scheme (sometimes called the disabled band reduction), and there's a specific council tax exemption for people who are severely mentally impaired.
Because these sit on top of each other rather than replacing one another, it's worth checking all three rather than assuming one covers the lot. This guide sets out how each works and how they can stack.
Council Tax Reduction and disability, explained
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Three separate things, easily conflated
- Means-tested Council Tax Reduction — based on income and savings, available to anyone regardless of disability.
- The disability reduction scheme (disabled band reduction) — not means-tested, based on whether your home has certain adaptations for a disabled resident.
- Severe mental impairment exemption or discount — for households where someone is severely mentally impaired, which can mean a full exemption or a discount depending on who else lives there.
The disability reduction scheme (disabled band reduction)
If a disabled person lives in your home and the property has certain features because of their disability — an extra bathroom or kitchen needed for their use, a room (other than a bathroom, kitchen or toilet) used predominantly to meet their needs, or enough floor space for a wheelchair to be used indoors — your council can reduce your council tax band by one level for billing purposes. If your property is already in the lowest band, you get an equivalent cash reduction instead.
This isn't means-tested
The disability reduction scheme doesn't look at income or savings at all — it's based purely on the property's adaptations and the presence of a disabled resident. You could qualify for this and means-tested Council Tax Reduction on top.
Severe mental impairment exemption
If someone in the property has a severe mental impairment — a permanent condition of the brain or mind that severely affects intellectual and social functioning, confirmed by a doctor and usually linked to receiving a qualifying benefit like Attendance Allowance or PIP — they can be disregarded for council tax purposes. Depending on who else lives in the property, this can mean a 25% discount (if they'd otherwise be counted as the second adult), or a full exemption (if they live alone, or with only other disregarded people).
How the three can stack together
In principle, a household could have an adapted property (disability band reduction), a severely mentally impaired resident (exemption or discount), and a low enough income and savings to also qualify for means-tested Council Tax Reduction on whatever remains of the bill. Each scheme is assessed separately by your council, so it's worth explicitly asking about all three rather than assuming a decision on one covers the others.
Frequently Asked Questions
What is the disability reduction scheme for council tax?
It's a non-means-tested reduction that drops your council tax band by one level (or gives an equivalent cash reduction if already in the lowest band) where a disabled resident's home has certain adaptations, like an extra room or bathroom used for their needs.
Can I get the disability band reduction and means-tested Council Tax Reduction at the same time?
Yes. They're assessed separately — the disability reduction is based on property adaptations, while Council Tax Reduction is based on income and savings — and can both apply to the same bill.
What is the severe mental impairment exemption?
It disregards a resident with a permanent, severe mental impairment for council tax purposes, which can mean a 25% discount or a full exemption depending on who else lives in the property.
Does receiving Attendance Allowance or PIP automatically qualify someone as severely mentally impaired?
No, but it's often used alongside a doctor's confirmation as supporting evidence — the exemption itself requires medical confirmation of the severe mental impairment.
Do I need to apply for each of these separately?
Usually yes — the disability band reduction, the severe mental impairment exemption, and means-tested Council Tax Reduction are typically separate applications or forms with your council, even though the same team handles all three.
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