Council Tax Hardship Fund and Section 13A Discretionary Relief Explained

Council tax support schemes have hard edges. You might earn just enough to fall outside the maximum award, or your circumstances might be so unusual that the standard scheme doesn't reflect your actual situation. That's where discretionary hardship relief comes in — a safety net most residents don't know exists.

Section 13A(1)(c): The Write-Off Power

Under Section 13A(1)(c) of the Local Government Finance Act 1992, every billing authority in England has the power to reduce or entirely write off a person's council tax liability. This is discretionary — councils aren't obliged to use it, and each authority sets its own policy for when they will.

The power is broad. A council can reduce council tax for an individual case of exceptional hardship, for a defined class of residents (such as care leavers), or for any other reason the authority considers appropriate. In practice, most councils reserve it for situations where the standard council tax support scheme has already been applied but the remaining bill still causes genuine financial hardship.

How Councils Typically Apply It

Most English councils have published Section 13A policies that set out their criteria. Common qualifying circumstances include:

• Already receiving maximum council tax support but still unable to afford the remaining bill
• Sudden income shock — job loss, relationship breakdown, bereavement — where the standard scheme hasn't caught up
• Domestic abuse survivors who have fled to a new address and face overlapping liability
• Care leavers (Coventry can grant up to 100% relief to Former Relevant care leavers aged 18–25 for whom the council acted as corporate parent, who live in Coventry and are liable for council tax at their main home)
• Residents with severe disability or long-term illness whose outgoings substantially exceed their income

Applications usually require full income and expenditure disclosure. A senior revenues officer assesses whether you've taken all reasonable steps to reduce your bill (claimed council tax support, applied discounts, set up a payment plan) before granting discretionary relief.

Crisis and Resilience Funds

Separate from Section 13A, many councils run crisis or resilience funds that can help with immediate financial emergencies — including council tax arrears. These evolved from the old Social Fund and local welfare assistance schemes.

In Coventry, the Crisis and Resilience Fund replaced the Household Support Fund and Discretionary Housing Payments for emergency needs. It has a separate application process from Section 13A discretionary council tax relief.

Eligibility and fund availability vary by council and change year to year as budgets are set. Your local Citizens Advice or council website will have the current criteria.

Important Distinctions

Section 13A hardship relief is not the same as:

• Council tax support — the main means-tested scheme that reduces your bill based on income. You should claim this first; hardship relief is for when support alone isn't enough.
• Payment arrangements — spreading your bill over 12 months instead of 10, or setting up a plan for arrears. These change when you pay, not how much you owe.
• Band challenges — reducing your bill by getting your property moved to a lower valuation band through the VOA.

Think of hardship relief as the last resort after all standard routes have been exhausted.

Applying

There's no standard national form. Check your council's website for "Section 13A" or "exceptional hardship relief" — most have an online or downloadable application form. You'll typically need to provide bank statements, a full list of income and outgoings, evidence of the hardship event, and confirmation that you're already receiving any council tax support or discounts you're entitled to.

If you're in Coventry, the Coventry Council Tax Reduction Guide covers the local hardship fund and Section 13A process in detail, including the specific criteria Coventry applies and the contact details for the relevant team.

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