Campaigners pushing for a blanket council tax reduction for all UK state pensioners have been given an important update by the Treasury. An online petition prompted an official response from Chancellor Rachel Reeves’ office after attracting over 10,000 supporters. The petition, launched by David Papworth, argued that reitrees shouldn’t have to pay such a “significant amount” of council tax, which eats away at their pension.
Despite his efforts, Treasury officials have dashed hopes of immediate reform, stating there are “no plans” for sweeping changes at this time and emphasising existing exemptions for vulnerable people. The statement 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.”
This year, the Government will spend more than £174 billion directly on the state pension and pensioner benefits across Britain.
The full rate of the new state pension has risen to £230.25 per week, amounting to over £12,000 annually, following an increase in line with average earnings.
Pension credit also guarantees a minimum level of income for low-income pensioners, and other benefits such as help with council tax, fuel bills and a free TV licence for those over 75.
Winter Fuel Payments will also be given to all people beyond State Pension age in England and Wales earning £35,000 or less annually – a benefit that was reinstated to nine million pensioners earlier this year by the Chancellor.