Council Tax Second Adult Rebate in England — Does It Still Exist?

What the Second Adult Rebate Was

Before April 2013, the national Council Tax Benefit scheme included a provision called the Second Adult Rebate (also known as the Alternative Maximum Council Tax Benefit). It gave a discount to the liable person — typically a homeowner — who lived with a second adult who was on a low income or receiving certain qualifying benefits.

The rebate applied when the second adult's income was too low for them to contribute to the council tax bill. It could reduce the bill by up to 25%, depending on the second adult's circumstances.

It was means-tested against the second adult's income, not the liable person's income. A high-earning homeowner living with a low-income adult child or friend could qualify.

Why It Was Abolished in England

The Welfare Reform Act 2012 replaced Council Tax Benefit with localised Council Tax Reduction (CTR) schemes from 1 April 2013. Section 13A(1)(a) of the Local Government Finance Act 1992 now requires each billing authority in England to design and operate its own CTR scheme for working-age claimants (pensioners remain on a nationally prescribed scheme).

When national Council Tax Benefit ended, the Second Adult Rebate ended with it. England's local CTR schemes are not required to include a second adult rebate equivalent, and most do not. A handful of councils have included something similar in their local schemes, but it is not standard.

Wales still operates a version of second adult rebate within its national CTR scheme. Scotland has its own arrangements. This post covers England only.

What Replaced It

In practice, the routes available for a household in this situation are:

Council Tax Reduction (Means-Tested)

If the liable person is on a low income, they can apply for CTR under their council's local scheme. This is a means-tested scheme based on household income and capital. It can reduce the bill by up to 100% depending on the scheme.

Single Person Discount (Non-Means-Tested)

If the second adult qualifies as a disregarded person — full-time student, apprentice under £195/week, someone with severe mental impairment, a live-in carer — then the liable person may qualify for a 25% single person discount under Section 11 of the LGFA 1992. The discount is automatic once the council confirms the disregard. Income is irrelevant.

Discretionary Relief Under Section 13A(1)(c)

Billing authorities have a catch-all power to reduce any person's council tax liability if they consider it appropriate. This is entirely at the council's discretion and varies widely. Applications are usually considered on a case-by-case basis for people experiencing exceptional hardship.

The Key Distinction

The second adult rebate looked at the second adult's income. The single person discount ignores income entirely and asks one question: how many countable adults live in the dwelling? If the second adult falls into a disregard category, they do not count, and the liable person gets 25% off.

If you previously received a second adult rebate and lost it when the scheme changed in 2013, check whether the other adult in your household qualifies for a statutory disregard. The 25% single person discount is worth more than many second adult rebate awards were, and it does not depend on your council's local scheme.

The England Single Person Discount guide walks through every disregard category and how to check whether anyone in your household qualifies.

See more England guides →