Council Tax Reduction
- why we need to spread the word
by Myles Fitt, head of the CAS Financial Health team.
This article was first published in The Herald on 31 January 2026.
Council Tax is a vital source of income for cash-strapped local authorities helping deliver services for communities across Scotland.
It is also the most common type of debt the CAB service sees every year. One key reason is that for those on low incomes, paying Council Tax competes with essential daily living costs.
This is the case with Diana, a mum of two, who came to her local CAB for help with arrears: “I do understand it is essential to pay Council Tax but in terms of priority it is not at the same level as the basics to live. My priorities are food, gas, electric, clothing for my kids, then rent. Council Tax is way down my list.”
Sometimes it is the Council Tax that is prioritised. Steven, a single dad, told his CAB that: “Yes, I have had to go without food and heating to pay for Council Tax. It has happened two or three times. I would rather go without because I know that by not paying, I will end up in a worse position.”
These are realities facing many thousands of people across Scotland.
As councils start the process of setting next year’s Council Tax levels, we ask that every effort goes into ensuring as many eligible people as possible can access Council Tax Reduction (CTR) or other discounts and exemptions available. A second year of inflation-busting increases will hit low-income groups hard, therefore softening the blow through these savings on Council Tax is essential.
That is why CABs across Scotland are embarking on a national promotional campaign to raise awareness of CTR, discounts and exemptions. Across February and March, our network alongside local authorities will be sharing leaflets, posters and social media on CTR to reach as many people in as many communities as possible.
The more people that know, the better it will be for individuals, families and households. It may make the difference for people like Diana and Steven to meet their living costs, including Council Tax.
And councils will benefit too. People who don’t use their entitled CTR can fall into arrears which lead to councils losing vital income as well as incur costs of recovery. But if people received their entitlement, councils are recompensed by the Scottish Government so don’t lose out. It’s a win-win for everyone.
CTR is an important way in helping people manage Council Tax payments. There are other ways too. Increasing the time between one missed payment and debt recovery starting is another. Giving people more time to get in a better financial position by seeking help from advice agencies such as our Citizens Advice network, where income maximisation checks can go a long way to managing council tax payments and avoiding arrears.
As we approach the Holyrood election, we are asking all parties to commit to a wide-ranging review of Council Tax administration and debt recovery. To deliver a system that gives more upfront support for those struggling to pay while protecting local authority income, including Council Tax Reduction. Wales has done this. England is poised to do this. Now its Scotland’s turn.