The Treasury, run by chancellor Rachel Reeves has responded to calls for pension council tax cuts (Image: Getty)
A major update has been given to campaigners who are battling for a council tax discount for all UK state pensioners. Support has been soaring for a petition on the Parliament website, smashing through the 10,000 barrier.
Now the Treasury led by Chancellor Rachel Reeves has made an official response giving an update on if there are any plans for a discount. The petition created by David Papworth said: “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.
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“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.”
In a blow to campaigners Treasury officials said there are ‘no plans’ for a big change currently, and explained that there are exemptions for the poorest. It also said that there are a range of assistqnce currently being offered to some of the poorest people in the country.
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.
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“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.”
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The Treasury listed a number of benefits aimed at pensioners currently, saying this year, the Government will spend over ￡174 billion directly on the State Pension and benefits for pensioners in Great Britain. It added that 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.
It said: “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 ￡31 billion 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 highlighted the winter fuel payment, which will go to all over the State Pension age in England and Wales with an income of, or below, ￡35,000 a year - which was returned to 9 million pensioners earlier this year by Chancellor Rachel Reeves.
It aslo said other key supplementary benefits for low-income pensioners include the Warm Home Discount (rebate on energy bills); Housing Benefit (help with rent); and Discretionary Housing Payments. The Household Support Fund in England provides discretionary support towards the cost of essentials, which the Government has extended until 31 March 2026. Pensioners also qualify for free eye tests and NHS prescriptions, and free bus passes.
HM Treasury If it gets to 100,000 signatures then it could be given a debate in Parliament. Pensioners pay normal council tax unless they qualify for a reduction. Council Tax Reduction, also known as Council Tax Support, is a benefit to help people who are on a low income or claiming certain benefits to pay their Council Tax bill.
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People can make a claim whether you own their home or if they’re renting, and employment status won’t have an impact on the claim.
Council tax reduction eligibility:
People on a low income or receiving certain benefits might be eligible for Council Tax Reduction. But whether a person is eligible in an area, and what they might be eligible for, is up to the local council. Each council has their own rules so people should check what the rules are in their area.
To view the full response and back the petition click here.
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