Council Tax warning as millions miss out on £1,500 support

This is because councils across the country run Council Tax Support schemes, sometimes called Council Tax Reduction, which allows you to take money off of your bill if you meet the eligibility criteria.

If you are on low income or claiming benefits, you could be eligible for the support, though the criteria can vary depending on your local authority.

New analysis by Policy in Practice found that more than 2.2 million people were missing out on  Council Tax Support .

Additional support is being unclaimed by millions of people across the country. You can use a free and confidential benefits calculator to check if you could be eligible or explore more help available through the Help and Support section on the foodbank website. pic.twitter.com/8DFuurzpo5

— Southend Foodbank (@SouthendFoodBan) October 1, 2025

This year, they estimate £3.3 billion in Council Tax will go unclaimed. The reasons for this are complex, but the report says: "Many people simply don’t know they’re eligible, especially if they are working, have some savings, or their circumstances have recently changed.

"Eligibility rules can be complex, vary across schemes and change over time. Without trusted sources of information, it’s easy to assume you don’t qualify.

"Navigating the benefits system can be overwhelming, particularly for people with low digital skills, limited time, health issues or language barriers.

"Long forms, unclear guidance and inconsistent experiences across the organisations administering benefits make it hard to know where to start and easy to give up."

It's worth checking if you are eligible for help. You can find your local authority here .

Which other benefits go unclaimed?

According to the report, in 2025/26 an estimated £24.1 billion in income related benefits and social tariffs will go unclaimed across Great Britain.

The highest unclaimed amounts are from:

• Universal Credit
• Council Tax Support
• Carer’s Allowance

This is partly because they are benefits that pay a sizeable amount if claimed. The most frequently unclaimed benefits are the smaller payments, but it all adds up.

These are:

• broadband social tariffs
• water discounts
• Council Tax Support

"Accessing this support would help raise living standards, prevent crises and reduce pressure on public services, but it is not reaching the people who need it," says the report.

Government guidance on Council Tax Support says: “You could be eligible if you’re on a low income or claim benefits. Your bill could be reduced by up to 100%.

“You can apply if you own your home, rent, are unemployed or working."

What you get depends on:

• where you live - each council runs its own scheme
• your circumstances (for example income, number of children, benefits, residency status)
• your household income - this includes savings, pensions and your partner’s income
• if your children live with you
• if other adults live with you

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"It’s encouraging to see the Government making efforts to reunite people with money they may not even realise was theirs.

"With an estimated average of £2,242 waiting in unclaimed accounts, this is real money at a crucial time, that can help young people right at the start of their financial lives."

The savings accounts are not held by government but are held in banks, building societies or other saving providers. Find out more about Child Trust Funds at GOV.UK .