Council Tax Reduction for Carers in Liverpool

If you're providing care for someone in Liverpool, there are specific council tax rules that work in your favour — but only if you know to apply for them separately. The carer disregard, the income-based Council Tax Reduction scheme, and Carer's Allowance all interact in ways the council doesn't explain in one place.

The Carer Disregard

A carer who provides 35 or more hours of care per week to someone receiving a qualifying disability benefit (PIP, DLA middle/higher rate care, Attendance Allowance) can be disregarded for council tax purposes. The person being cared for must not be their partner.

"Disregarded" means treated as if they don't live in the property for council tax counting purposes. This matters because:

• If the disregarded carer and one other adult are the only people in the household, the remaining person qualifies for the 25% Single Person Discount
• If the disregarded carer is the only adult besides someone with a Severe Mental Impairment (SMI) exemption, the property could be 100% exempt

The carer disregard is a statutory discount applied to the property's bill before Council Tax Reduction is calculated. So the bill goes down first, then CTR reduces it further.

You need to apply for this separately through Liverpool City Council's discounts and exemptions team — it doesn't happen automatically when you claim CTR.

Carer's Allowance and Income Bands

Carer's Allowance is a national benefit paid by the DWP. For Liverpool's Council Tax Reduction assessment, the question is whether it counts as earned income and affects your income band.

Carer's Allowance is classified as unearned income under the scheme — it's not wages from employment. Liverpool's banded system primarily assesses net monthly earned income to determine your band. If you're not working and Carer's Allowance is your only income, you'd be in Band 1 (no earned income, 84% reduction).

If you work alongside caring duties, only your employment earnings determine your band. The Carer's Allowance itself doesn't push you into a higher band.

When You Care for Someone in Your Own Home

If the person you care for lives with you and they're not your partner, their presence might trigger a non-dependant deduction from your CTR award. Non-dependant deductions are £5 per week for someone on benefits or working under 16 hours, or £20 per week for someone working 16 hours or more.

The council applies non-dependant deductions based on the person's work and benefit status. The rules depend on each household's circumstances — check with Citizens Advice Liverpool (0300 330 1196) if your situation is complicated.

What Carers Often Miss

Most carers in Liverpool apply for either the carer disregard or Council Tax Reduction, but not both. They're separate applications through separate parts of the council, and each one reduces your bill independently. The carer disregard cuts the base bill; CTR then takes a percentage off whatever is left.

Also check whether the person you care for qualifies for the Disabled Band Reduction (reducing the property's valuation band by one level) or the Severe Mental Impairment exemption. These stack with the carer disregard and with CTR.

Our Liverpool Council Tax Reduction guide maps every carer-relevant discount alongside the Council Tax Reduction income bands, showing how they combine for your specific household.

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