State pension age council tax cut update as Government breaks silence

The Government has addressed the demand for all individuals above the State Pension age to receive a council tax reduction. This follows a petition, which garnered over 10,000 signatures, urging everyone over the State Pension age to be granted a discounted council tax rate, thereby eliciting a response from HM Treasury.

The petition implores the Government to enact legislation ensuring that pensioners aren't required to allocate "a very significant percentage" of their income towards this tax. Petition initiator David Papworth expressed his concern, stating: "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 added: "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."

However, in its response, the Government clarified that there are no plans to introduce a council tax discount for all pensioners, as councils already offer support to the lowest-income pensioners. Earlier this year, the Government announced a 5% increase in council tax bills for the third consecutive year, starting from April - an additional £109 payment for the average household.

Households in band D will see their council tax bill rise by £109, with the average bill climbing to £2,280. This marks a significant increase from the 2024-25 figure and a staggering 20% hike from the 2021-22 average of £1,898. Those over the State Pension age of 66 are currently receiving a maximum of £230.25 a week, following a rate increase this April at the commencement of the new tax year.

Addressing the petition submitted on August 6, the Government stated it has "no plans for a mandatory council tax discount for all pensioners," emphasising that council tax is "an essential component" of local authority funding.

It 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."

It added: "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, 1.4m 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 Government expects local authorities to carefully consider the financial implications for their residents, including those with lower incomes, when setting their council tax levels. Every billing authority is required to have a locally designed council tax support scheme to reduce bills for those in financial difficulty.

"We are committed to ensuring economic security for people at every stage of their lives, including when they reach retirement. Support for pensioners is available via the State Pension and a range of other benefits.

"This year, the Government will spend over £174 billion directly on the State Pension and benefits for pensioners in Great Britain in 2025/26. The full rate of the new State Pension has risen to £230.25 per week, which is over £12,000 per year, following an increase in line with average earnings."

The petition has now concluded after gaining 11,201 signatures.