Council Tax Hardship Fund Wales — Section 13A Discretionary Reduction

When standard Council Tax Reduction does not cover your full bill and you still cannot afford what is left, Welsh councils have a discretionary power under Section 13A(1)(c) of the Local Government Finance Act 1992 to reduce or write off council tax entirely. This is not the main CTR scheme — it is a separate, last-resort mechanism for genuine hardship.

What Section 13A Does

Section 13A gives every Welsh billing authority the power to reduce the council tax payable by any amount, including to zero, for any individual case. Unlike the main CTR scheme (which follows nationally prescribed rules), Section 13A is entirely discretionary. The council decides:

• Whether to operate a formal hardship scheme or handle requests case by case
• What evidence to require
• How much to reduce (partial or full)
• Whether the reduction is temporary or covers the full year

There is no statutory entitlement. Applicants must apply in writing, and each council applies its own policy.

When to Apply

Section 13A is designed for situations where the main CTR scheme has already been applied (or the applicant does not qualify for CTR) and there is still a council tax liability the household genuinely cannot pay. Typical scenarios:

• CTR covers most of the bill but the remainder is unaffordable — even a small weekly amount can be unmanageable when income barely covers food and utilities
• Capital above the £16,000 CTR limit — this can exclude working-age claims and pension-age claims without Pension Credit Guarantee Credit, even if savings are earmarked for essential needs (funeral costs, essential home repairs). Pension Credit Guarantee Credit recipients have no capital limit.
• Sudden loss of income — redundancy, business failure, or relationship breakdown where the standard means test has not yet caught up
• Domestic abuse — fleeing violence and liable for council tax at an address you no longer occupy
• Severe disability or mental health crisis — circumstances that make it unreasonable to expect the household to pay

How to Apply

Most councils do not advertise Section 13A prominently. Some have a specific application form; others require a letter to the revenues team. Evidence requirements differ by council, but you may be asked to provide:

1. Full income and expenditure statement — every source of income and every essential outgoing, showing that after necessities there is no money left for council tax
2. Bank statements — for the period your council requests, showing the reality of your finances
3. Details of debts — including priority debts (rent, energy, other council tax) and non-priority debts
4. Explanation of circumstances — what has happened and why standard CTR is insufficient
5. Evidence of any other help you have sought — benefit applications, debt advice, other council schemes

The stronger your evidence that you have explored every other option first, the more likely the council is to exercise its discretion.

What Councils Consider

Each council has its own policy, but common considerations include:

• Has the applicant claimed all benefits they are entitled to (including CTR)?
• Is the hardship temporary or ongoing?
• Are there other debts, and has the applicant sought free debt advice?
• Would paying the council tax deprive the household of essential needs (food, heating, medicine)?
• Are there exceptional circumstances (domestic abuse, severe disability, bereavement)?

Councils are reluctant to use Section 13A as a routine top-up to CTR. They treat it as an exceptional safety net. Applying with clear, honest financial evidence and a specific explanation of why your situation is exceptional gives you the best chance.

If the Council Says No

A refusal of Section 13A is not appealable to the Valuation Tribunal for Wales — the VTW only hears appeals about the main CTR scheme, not discretionary powers. However, you can:

• Ask the council to reconsider if your circumstances have changed or you have new evidence
• Complain through the council's complaints procedure if you believe the decision was not made properly
• Contact the Public Services Ombudsman for Wales if you believe maladministration occurred

In practice, many councils will negotiate. If they will not write off the full amount, they may agree to a reduced payment plan or a partial write-off.

Debt Advice Is Free

If council tax is part of wider debt, organisations like StepChange, National Debtline, and Citizens Advice Cymru offer free, confidential advice. They can negotiate with the council on your behalf and help you access Debt Relief Orders or other formal debt solutions if appropriate.

The Council Tax Reduction in Wales guide covers both the standard CTR claim process and the Section 13A discretionary route — including a financial statement template for hardship applications and contacts for free debt advice across Wales.

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