Four million pensioners in the United Kingdom may soon face higher council tax bills if the single-person discount is abolished. Housing Secretary Angela Rayner has not ruled out the possibility of scrapping this discount, a move that has ignited significant concern among pensioners and advocacy groups.
The single-person discount currently reduces the average Band D council tax bill by approximately £543 per year, providing a total saving of about £3 billion annually, according to the Institute for Fiscal Studies (IFS). Angela Rayner’s recent comments suggesting that the government is reevaluating this discount have met with backlash, especially in light of the rising living costs affecting many older residents. This comes on the heels of Chancellor Rachel Reeves’s decision to means-test winter fuel payments, which previously provided up to £300 to around 10 million pensioners, aiming to save the Treasury £1.4 billion.
Jan Shortt, general secretary of the National Pensioners Convention, criticised the potential removal of the discount, calling it an “unforgivable betrayal” of older people that could force them to give up their homes. She stated, “It seems older people, who have no voice in parliament, are seen as easy targets.” In the House of Commons, Conservative MP Graham Stuart also expressed concerns, emphasising the financial strain on pensioners losing both winter fuel payments and council tax discounts. He remarked, “That is taking hundreds of pounds from those that can least afford it. We cannot have such an unnecessary impact on pensioners.”
Speaking in the Commons, Rayner assured that there were no current plans to increase council tax, but did not commit to maintaining the single-person discount. When questioned, she stated, “This Government is about making sure that working people are better off, and we intend to do that.” Data from the Ministry of Housing, Communities and Local Government indicates that approximately 8.4 million households in England benefit from the 25% discount for single occupants, with an additional 253,000 households qualifying due to other residents being disregarded for council tax purposes. Figures from the Office for National Statistics (ONS) show that half of those living alone are aged over 65.
The largest number of single-person households eligible for the discount are found in Birmingham, where 152,000 people benefit from the tax saving. Other significant areas include retiree-friendly rural regions such as Cornwall, Somerset, and North Yorkshire. As the UK’s population ages, the number of people living alone is increasing, with an 8% rise in single-occupant households recorded over the past decade.
Caroline Abrahams, charity director at Age UK, highlighted the challenges older people living alone already face with fixed household costs that do not diminish for single occupants. She warned, “If the single-person discount for council tax was abolished, many pensioners—particularly widows—could find their finances severely strained, especially if they also lose their Winter Fuel Payment.”
A spokesperson for the Housing Department reiterated that the government currently has no plans to reform council tax. Nevertheless, the potential changes have already sparked anxiety among pensioner advocacy groups and MPs alike.
The potential abolition of the single-person council tax discount underscores the financial vulnerabilities faced by pensioners in the UK. With government assurances remaining vague, the issue continues to be a source of significant concern for many elderly individuals who rely on these discounts to manage their living expenses.