In a major step to ease the cost-of-living burden, the Scottish Government is expanding its Council Tax debt support scheme across the country in 2025. Backed by £2.2 million in new funding, this initiative will now be available nationwide through Citizens Advice Scotland, following a successful trial in nine council areas. The goal is simple — provide dignified and empathetic support to households struggling with Council Tax arrears.
Why Is the Scheme Being Expanded?
As Council Tax rates rise across Scotland, more families are falling into financial difficulty. For example, Falkirk Council has introduced a 15.6% increase, the highest in Scotland. The debt support scheme has already helped over 1,600 people, and the government wants to reach even more households in need.
Housing Minister Paul McLennan explained:
“Any type of debt, including Council Tax debt, puts pressure on households and can cause real difficulties for family finances. Empathy and dignity must be at the heart of debt support.”
What Does the Scheme Offer?
This financial support scheme provides a holistic approach to helping people manage their Council Tax debt. It focuses on:
- Reaching non-digital users who may not access online help
- Connecting people to mental health services where needed
- Encouraging early intervention to prevent financial crisis
- Helping individuals apply for Council Tax reductions and reassessments
The programme is part of the Scottish Government’s wider anti-poverty strategy, which also includes:
- £6.9 billion in social security support
- £37 million for expanding free school meals
- Increases to the Scottish Child Payment
Who Can Qualify for a Council Tax Reduction?
Many people may be paying full Council Tax when they could legally pay less — or nothing at all. Here’s how you might qualify:
You Do Not Need to Pay Council Tax If You:
- Are a full-time student
- Live in Forces accommodation
- Live in a hospital or care home
- Have a severe mental impairment (e.g. dementia)
- Have an empty property due to hospitalisation (for up to six months)
You Could Get a Reduction If You:
- Live alone – You may qualify for a 25% discount
- Are under 18, a student nurse, apprentice, or trainee – You’re disregarded from the Council Tax count
- Are a carer providing 35+ hours a week – You may not count towards Council Tax
- Live with a disabled person – Your home may be rebanded for a discount
Other Council Tax Relief Options
- Spread your payments over 12 months instead of 10
- Some councils offer discounts for paying upfront
You may be eligible for a Council Tax band reassessment if your home’s value has decreased (due to nearby construction or home adaptations)
How to Apply for Council Tax Reduction
You may qualify if you:
- Have a low income or receive benefits
- Own or rent your home
- Are working or unemployed
Your local council decides how much support you get based on:
- Your income and savings
- How many people live with you
- The Council Tax rate in your area
Check Your Eligibility & Apply:
- Use the Council Tax Reduction calculator on mygov.scot
- Contact your local council directly for an application form or assistance
With rising Council Tax bills and household debt becoming more common, the Scottish Government’s expansion of the Citizens Advice Scotland debt support scheme is a much-needed relief for struggling families.
If you’re on a low income, a carer, a disabled person, or just unsure of your eligibility, now is the time to check. You may be able to reduce or eliminate your Council Tax payments, access mental health and budgeting support, and take the first step towards regaining financial control.
FAQ’s
Who is eligible for Council Tax Reduction in Scotland?
You may qualify if you are on a low income, receive benefits, live alone, are a carer, disabled, a student, or live with someone who meets these conditions.
What support is offered through the new Council Tax debt scheme?
The scheme offers debt help, non-digital support access, links to mental health services, and help applying for Council Tax discounts or reassessments.
How do I apply for Council Tax Reduction?
You can apply via your local council or use the online calculator on mygov.scot to check eligibility before submitting your application.
What are some common Council Tax discounts available?
Common discounts include 25% for single occupancy, reductions for carers or disabled residents, and full exemptions for students and care home residents.
What areas benefit from the expansion of this scheme?
The scheme is now being expanded across all of Scotland, following a successful trial in nine local authority areas.
