The Treasury has been forced to respond to calls for a council tax ‘cut’ for all state pensioners. Labour Party Chancellor Rachel Reeves’ department has replied after a surge of support for the plan.

The petition created by David Papworth said: “I feel that current council tax rates do not take pension incomes into account. This means some pensioners are having to pay what I think is a very significant percentage of their pension towards council tax.

“When many pensioners have worked for 50 odd years, paid into a pension, bought their own house, then retire on a lower income, I do not think they should have to pay such a significant amount of council tax.”

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In a blow to campaigners Treasury officials said there are ‘no plans’ for a big change currently, and explained that there are exemptions for the poorest. It also said that there are a range of assistqnce currently being offered to some of the poorest people in the country.

It said: “The Government requires councils to provide council tax support so the lowest-income pensioners do not pay council tax. There are no plans for a mandatory council tax discount for all pensioners.

“Councils provide over 800 vital local public services to millions of people across the country. Council tax is an essential component of their funding, without which councils would not be able to meet their legal responsibilities.

“To ensure fairness in the system, there are a range of discounts and exemptions to reflect personal circumstances. Councils are required to put in place a centrally prescribed support scheme for pension-age households. This ensures that the lowest-income pensioners are not required to make any contribution towards their council tax. In March 2025, 1.4m claimants were being supported by the pension age local council tax support. The government has no plans to introduce a mandatory discount for all pensioners.”

It said: “The basic State Pension has also increased to £176.45 per week, which is over £9,200 per year. These increases reflect our commitment to the Triple Lock and to protecting pensioners from the rising cost of living.

“The Government’s commitment to maintaining the Triple Lock throughout this Parliament will mean the annual spending on people’s State Pensions is forecast to rise by around £31 billion and this will see pensioners’ yearly incomes being up to £1,900 higher by the end of this parliament.

“Supplementary benefits provide additional support, including Pension Credit (which guarantees a minimum level of income for low-income pensioners).

“Pensioners receiving Pension Credit also to receive other benefits (help with council tax, fuel bills and a free TV licence for those over 75).”