PIP and Council Tax - Can You Get a Reduction or Exemption?

Receiving PIP can help you reduce or even eliminate your council tax bill. There are two main ways: the Severe Mental Impairment (SMI) exemption and the disability reduction scheme. Many people don't know these exist and overpay by hundreds of pounds every year.

Severe Mental Impairment (SMI) Exemption

If you have a severe mental impairment - defined as a permanent condition that severely impairs your intelligence and social functioning - you may be completely exempt from council tax. Conditions that commonly qualify include dementia, severe learning disabilities, brain injuries, stroke, and severe mental health conditions.

To qualify, you need a medical certificate from your GP confirming the impairment, and you must be entitled to a qualifying benefit (PIP daily living component, ESA, Attendance Allowance, or certain others).

If you live alone, you pay nothing. If you live with one other person who is also SMI exempt, you both pay nothing. If your partner is not exempt, they get a 25% single person discount.

Disability Reduction Scheme

If your home has been adapted for a disabled person, or you need an extra room because of your disability, you may qualify for a council tax reduction. This reduces your band by one level (so Band D becomes Band C rates). You need to show that your property has an extra room used mainly by the disabled person, an extra bathroom or kitchen needed because of the disability, or extra space needed for wheelchair use.

Council Tax Support (Reduction)

Separately from the above, if you're on a low income and receive PIP, you may qualify for Council Tax Support (called Council Tax Reduction in some areas). This is means-tested and administered by your local council. Receiving PIP often increases your applicable amount, meaning you qualify for more support.

Can PIP Itself Be Counted as Income for Council Tax?

No. PIP is not counted as income for council tax purposes. It will not reduce your Council Tax Support entitlement. This is one of the many reasons PIP is valuable beyond the payment itself.