How Attendance Allowance Affects Your Council Tax
Receiving Attendance Allowance can have a significant positive effect on your council tax bill. While Attendance Allowance itself does not directly reduce your council tax, it can increase your entitlement to Council Tax Reduction and Pension Credit, both of which can substantially lower the amount you pay.
Council Tax Reduction and Attendance Allowance
Council Tax Reduction (also known as Council Tax Support) is a means-tested discount on your council tax bill provided by your local council. When you receive Attendance Allowance, it may increase the amount of Pension Credit you receive (see below), and higher Pension Credit entitlement generally leads to greater Council Tax Reduction — in some cases up to 100% of your council tax bill.
How Pension Credit and Attendance Allowance Work Together
Receiving Attendance Allowance at either rate can increase the amount of Pension Credit you receive by adding a 'severe disability premium' (or equivalent addition). This increased Pension Credit may in turn lead to a full or partial Council Tax Reduction, depending on your local council's scheme.
The Disability Band Reduction
Separately from Council Tax Reduction, if someone in your home needs a particular type of care relating to disability, you may qualify for a council tax band reduction — having your home assessed in the band below its actual rating. Conditions include needing an extra room for a wheelchair, medical equipment, or a non-resident carer overnight. This is separate from Attendance Allowance but can be claimed alongside it.
How to Claim Your Council Tax Benefits After Getting Attendance Allowance
Once you receive an Attendance Allowance award, contact your local council to notify them and request a review of your Council Tax Reduction. Also contact the Pension Credit team to ensure your award is updated. These steps could save you hundreds of pounds per year.
Talk to an Expert
Attendance Allowance triggers a chain of potential additional benefits. At Elder Care, we help you claim Attendance Allowance and then advise on every other benefit you may be entitled to as a result. Contact us for a free eligibility check today.