Section 13A Council Tax: Discretionary Relief Explained

What Is Section 13A Council Tax Relief?

Section 13A of the Local Government Finance Act 1992 gives local councils in England a legal power to reduce a council tax bill — including reducing it to zero — for any individual liable person where the council considers it appropriate. For someone struggling to pay a council tax bill, this is one of the few formal routes that can result in the balance being partially or entirely written off, without requiring bankruptcy or any other formal insolvency process.

The power was significantly expanded by the Local Government Finance Act 2012, which replaced the older discretionary relief system and made Section 13A the principal mechanism for council-level council tax reduction. Importantly, this is a discretionary power: the council is not legally required to grant it in any particular case, but it is legally required to have a published policy setting out how it will use it.

Who Can Apply for a Section 13A Reduction?

Any person who is liable to pay council tax to a billing authority in England can apply for a Section 13A reduction. There is no single national eligibility rule because each council sets its own policy — which means the criteria and outcomes vary significantly from one local authority to another.

That said, the most common situations in which councils consider using this power include:

• Cases of severe financial hardship where the liable person cannot meet their council tax bill despite being ineligible for (or already receiving) Council Tax Reduction (CTR) support
• Exceptional personal circumstances such as serious illness, bereavement, or sudden loss of income
• Situations where the existing CTR scheme does not adequately cover the person's liability and additional relief is needed to avoid genuine hardship
• Cases where someone has a disputed liability or faces unusual financial pressures not captured by standard benefit calculations

Section 13A is sometimes described as a "hardship fund" or a "discretionary hardship relief" by councils, though the formal legal label is the one that matters when making or challenging an application. Some councils also use this power alongside their Local Council Tax Support (LCTS) schemes to top up support for the lowest-income households.

How Section 13A Differs from Council Tax Reduction

It is important to understand that Section 13A relief and Council Tax Reduction (CTR — sometimes called Council Tax Support or LCTS) are separate things, even though both can reduce a council tax bill.

Council Tax Reduction is a means-tested scheme run by each local authority. Eligibility is calculated using a set of rules about income, savings, household composition and other factors. If someone qualifies, the reduction is applied automatically to their account once a claim is assessed. It is not discretionary in the same way — there are defined criteria.

Section 13A, by contrast, is a genuine discretionary power. There are no nationally set income thresholds or household rules. A council can grant a Section 13A reduction even to someone who does not qualify for CTR, or it can top up an existing CTR award if the remaining liability still causes hardship. The council's own published policy will set out the factors it takes into account.

How to Apply for a Section 13A Reduction

There is no national application form for Section 13A. The process is set by each individual council. The first step for someone seeking this relief is to contact their local billing authority — this is the district or borough council, not the county council — and ask specifically about a discretionary hardship relief application under Section 13A of the Local Government Finance Act 1992.

Most councils will ask the applicant to provide:

• A written explanation of the circumstances that make it impossible or extremely difficult to pay the council tax bill
• Evidence of income, savings, and outgoings — such as bank statements, benefit award letters, or payslips
• Details of any other debts or financial pressures, including rent or mortgage arrears
• Medical evidence if the hardship is linked to illness or disability

A council may assess the application within a few weeks, though timescales vary. The council will then issue a written decision. If the application is successful, the agreed reduction will be applied to the council tax account, either reducing the outstanding balance or cancelling it entirely depending on what the council decides is appropriate.

If a council refuses a Section 13A application, or the person believes the decision was made without properly following the council's own published policy, there is a right to challenge the decision. This is covered in more detail below.

What Happens If a Council Refuses

A refusal of a Section 13A application is not necessarily the end of the matter. Because a council is required by law to exercise this power in accordance with its published policy, a refusal that appears to contradict that policy — or that does not give adequate reasons — may be challengeable.

The options available to someone who has been refused include:

• Internal review or appeal to the council — asking the council to reconsider the decision, particularly if new evidence is available or if the decision does not appear to follow the council's own published criteria
• Complaint to the Local Government and Social Care Ombudsman — if the council has failed to follow its own policy or has acted with maladministration in handling the application, a complaint to the Ombudsman can be made. The Ombudsman can recommend that a council reconsider its decision or provide a remedy
• Seeking representation from a debt adviser or welfare rights officer — an experienced adviser can assess whether the council has applied its policy correctly and help put together a stronger case for reconsideration

It is worth noting that a Section 13A refusal does not mean the council tax debt disappears — any outstanding balance will still be pursued through the standard council tax recovery process, which can escalate quickly to a liability order, enforcement agent (bailiff) action, or in serious cases, committal proceedings. Understanding the broader recovery process is important for anyone in council tax arrears, regardless of whether a Section 13A application is pending.

Section 13A and Ongoing Council Tax Debt

For someone who has already accumulated council tax arrears and is facing formal recovery action, a Section 13A application is one potential avenue — but it sits alongside other options that may also be relevant depending on the overall debt picture.

If the debt is limited to council tax and the council agrees a Section 13A reduction, this can resolve or significantly reduce the liability without any formal insolvency process. However, if council tax arrears are part of a wider debt problem — involving credit cards, loans, rent arrears, or HMRC debt — a broader solution may need to be considered. Formal options such as a Debt Relief Order, an Individual Voluntary Arrangement, or a Debt Management Plan each have different eligibility rules and consequences, and the facts about each of these are covered elsewhere on this site.

Free debt advice is available from MoneyHelper (moneyhelper.org.uk), StepChange (stepchange.org), Citizens Advice (citizensadvice.org.uk), and National Debtline (nationaldebtline.org). These organisations can assess the full picture of someone's finances and explain which formal or informal options may be available — at no cost to the individual.

Common Questions About Section 13A Council Tax

Does a Section 13A application stop bailiffs or recovery action?

Not automatically. A pending Section 13A application does not place a legal hold on enforcement proceedings in the way that a Breathing Space (Debt Respite Scheme) does. However, some councils will pause enforcement while a hardship application is under review as a matter of practice — it is worth contacting the council directly and asking them to hold action while the application is considered. Anyone who has already received a Notice of Enforcement from a bailiff should be aware that the fee clock begins at that point.

Can Section 13A be used to write off council tax from previous years?

There is no specific legal rule preventing a council from granting a Section 13A reduction on arrears from earlier billing years, as long as the council tax remains legally recoverable. In practice, many councils focus this power on current-year liability, but some will consider historic arrears in cases of exceptional hardship. The council's published policy will usually clarify this, and it is worth asking explicitly when making an application.

Is Section 13A available in Scotland and Wales?

Section 13A of the Local Government Finance Act 1992 applies in England only. Scotland and Wales have separate legislation governing council tax and their own discretionary relief and hardship reduction schemes, administered under different statutory frameworks. Someone in Scotland or Wales should contact their local council directly and ask about discretionary council tax relief or hardship reduction under the rules that apply in their nation.

Does receiving a Section 13A reduction affect benefits or a credit record?

A Section 13A council tax reduction is not the same as a benefit payment, so it does not count as income for the purposes of means-tested benefits. Council tax liability and council tax reductions do not appear on a person's credit file in the same way that county court judgments or loan defaults do — so a successful Section 13A application should not directly affect a credit record. However, a county court judgment obtained during council tax recovery proceedings would appear on the Register of Judgments, Orders and Fines for six years, which is why resolving a council tax dispute before it reaches that stage is generally preferable.