As it stands at the moment, people who live alone or who are the only adult in their household get a 25% ‘single occupier’ discount on their council tax bill.
According to the Institute for Fiscal Studies (IFS), the discount currently reduces the average Band D council tax bill by about £543 per year.
This leaves single dwellers still paying significantly more for council services per person than people who live as a couple or in a multi-adult household.
Responding to a question in the House of Commons last week, the deputy Prime Minister Angela Rayner refused to rule out scrapping the discount for people who are the only adult living in their home.
According to the latest figures from the Department for Levelling Up, Housing and Communities, a total of 8.39 million households in England received the discount in 2023. The data shows just over a third (34%) of all households in the country would be affected if the discount was ditched.
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There are 8.3 million people living alone in the UK, according to the Office for National Statistics (ONS), with this number projected to rise to 10.7 million by 2039.
Many pensioners’ finances could be ‘severely strained’
Any council tax hike would have a disproportionate effect on older people, many of whom are already struggling with rising living costs.
Pensioners have already been dealt one big financial blow since Labour came to power, after Chancellor Rachel Reeves announced that the Government will means-test Winter Fuel Payments. To be eligible for this year’s Winter Fuel Payment, pensioners will need to receive one of the following benefits: Pension Credit, Universal Credit, Income Support, income-related Employment or Support Allowance or Jobseeker’s Allowance.
Caroline Abrahams, charity director at Age UK, warned that older people living alone already face significant challenges with fixed household costs that do not diminish for single occupants.
She said: “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.”
Campaigners have been calling for the single occupier discount to be increased to 50%. A petition earlier this year entitled ‘Give one-person households 50% council tax discount rather than 25%’ received more than 12,000 signatures, but ministers refused to act.
The Single Council Tax Campaign (SCTC), which set up the petition, posted on X: “Our campaign has been about increasing the single council tax discount from 25% to 50% (and more than 12,000 people signed our petition in support of this) but what seems more pressing right now, if this rumour turns out to be true, is SAVING the single council tax discount.”
