A campaign crossed a key threshold meaning Rachel Reeves’ department has been forced to respond
08:35, 07 Aug 2025Updated 08:36, 07 Aug 2025
The Treasury, run by chancellor Rachel Reeves has responded to calls for pension council tax cuts(Image: Getty Images)
A significant development has emerged for campaigners fighting for council tax reductions for all UK state pensioners. Backing has been surging for a petition on the Parliament website, breaking through the 10,000 threshold.
The Treasury, under Chancellor Rachel Reeves, has now delivered an official response outlining whether any plans exist for such a discount.
The petition, launched by David Papworth, stated: “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.”, reports the Express.
In a setback for campaigners, Treasury representatives confirmed there are ‘no plans’ for a major overhaul at present, and outlined that exemptions exist for the most vulnerable.
Officials also highlighted that various forms of support are currently available to some of the nation’s poorest residents.
They stated: “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.”
The Treasury outlined various benefits currently targeted at pensioners, revealing that this year, the Government will allocate over £174 billion directly towards the State Pension and pensioner benefits in Great Britain. It noted that the full rate of the new State Pension has increased to £230.25 per week, which amounts to over £12,000 annually, following a rise in line with average earnings.
It stated: “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).”
The department also emphasised the winter fuel payment, which will be available to all those above State Pension age in England and Wales earning £35,000 annually or less – a benefit that was reinstated for 9 million pensioners earlier this year by Chancellor Rachel Reeves. The Department for Work and Pensions also highlighted other key supplementary benefits for low-income pensioners, including the Warm Home Discount (a rebate on energy bills), Housing Benefit (assistance with rent), and Discretionary Housing Payments.
The Household Support Fund in England offers discretionary support towards the cost of essentials, which the Government has extended until 31 March 2026. Pensioners are also eligible for free eye tests and NHS prescriptions, as well as free bus passes.
If a petition reaches 100,000 signatures, it could potentially be debated in Parliament, according to HM Treasury. Pensioners are required to pay standard council tax unless they qualify for a reduction.
Council Tax Reduction, also known as Council Tax Support, is a benefit designed to assist those on a low income or claiming certain benefits to pay their Council Tax bill.
Claims can be made regardless of whether you own your home or are renting, and employment status does not affect the claim.
Eligibility for council tax reduction:
Individuals on a low income or receiving certain benefits may be eligible for Council Tax Reduction. However, eligibility in a specific area, and what one might be eligible for, is determined by the local council.
Each council has its own rules, so individuals should check the regulations in their area.
To view the full response and support the petition, click here.