Discretionary Council Tax Reduction: Section 13A Hardship Relief Explained

What Section 13A(1)(c) Hardship Relief Is

Even after a Council Tax Reduction award, some households still can't pay the remaining bill. Councils that cap working-age support at 80% or 85% can leave non-protected claimants with a minimum payment — and for the lowest-income households, even that residual amount can be unmanageable.

Section 13A(1)(c) of the Local Government Finance Act 1992 gives billing authorities in England discretion to reduce council tax liability by a specified amount or to zero. This isn't part of the standard CTR scheme — it's a separate discretionary power. Local policies set the application criteria and may require evidence of exceptional hardship.

You'll see it called different things depending on your council: Exceptional Hardship Fund, Discretionary Council Tax Reduction, Section 13A Hardship, or Council Tax Hardship Payment. They're all the same legal power.

Who Can Apply

Anyone liable for council tax who is experiencing exceptional financial hardship can apply — you don't need to be on CTR first, though in practice most applicants have already claimed CTR and are struggling with the remaining balance.

"Exceptional" is the key word. Councils don't grant s13A relief simply because money is tight. They're looking for circumstances where paying the remaining council tax would cause genuine hardship that goes beyond normal financial pressure. Examples to explain in your application include:

• A sudden income drop (redundancy, illness, relationship breakdown) that makes the bill unaffordable
• Debt spiralling to the point where the council tax residual tips the household into crisis
• Multiple financial pressures (rent arrears, utility debt, disability-related costs) accumulating at once
• Circumstances the standard CTR scheme doesn't address (savings just above the capital limit, non-dependant deductions that don't reflect reality because the non-dependant contributes nothing)

How to Apply

Check your council's website for their Exceptional Hardship Fund or s13A policy — most publish application forms and criteria. The process typically involves:

A detailed income and expenditure statement showing every source of income and every committed outgoing. Councils compare your total income against essential expenditure (housing, utilities, food, travel to work, childcare, minimum debt repayments) to assess whether paying the remaining council tax would leave you unable to meet basic needs.

Evidence of the hardship — bank statements showing the shortfall, debt letters, medical evidence if health has caused the income drop, redundancy notice, or similar documentation.

Evidence that you've explored other options — councils expect you to have claimed CTR, checked eligibility for other benefits, and contacted free debt advice services before applying for discretionary relief.

Some councils have a short application form; others require a detailed letter. Either way, be specific about amounts, dates, and what's changed. "I can't afford it" gets nowhere. "My income dropped by £400/month when I was made redundant on 15 September, my CTR covers 80% of the bill, and the remaining £18/week means I can't cover food for my children" gets attention.

What Councils Consider

Discretionary means exactly that — the council has no obligation to grant relief, and there's no fixed entitlement. Each application is assessed individually. Common assessment criteria include:

• Whether you've maximised your income (claimed all benefits, reported changes to CTR)
• Whether the hardship is temporary or ongoing
• The gap between your income and essential expenditure
• Whether you have other assets or resources
• The impact on your health, welfare, or children's welfare
• Whether the council's own CTR scheme rules created the shortfall (e.g., band caps, minimum payments)

There is no single national award period for this discretionary relief; check the council's policy for how long an award lasts and whether you need to reapply. Some councils award a percentage reduction on the remaining bill rather than wiping it entirely.

If the Application Is Refused

Discretionary decisions are harder to challenge than standard CTR decisions because the council has broad discretion. However, the council must still act reasonably and follow its own published policy. If they've ignored relevant information, applied the wrong criteria, or not considered your individual circumstances, you can:

1. Ask for a written explanation of the refusal
2. Submit additional evidence and request a reconsideration
3. Complain through the council's complaints procedure
4. Escalate to the Local Government Ombudsman if the process was flawed

The Debt Advice Boundary

If you're already in council tax arrears — a court summons, a liability order, or bailiff enforcement — the priority shifts from claiming reductions to managing the debt. Statutory compliance costs of £75 and enforcement agent fees of £235 (plus 7.5% on balances over £1,500) add up fast.

Contact StepChange Debt Charity, National Debtline, or Citizens Advice before engaging with enforcement agents. They can help negotiate affordable payment plans and may be able to arrange a Breathing Space moratorium that pauses all enforcement for 60 days.

The Council Tax Reduction guide covers both the standard CTR claim process and the s13A hardship route, including how to structure a hardship application that addresses the criteria councils actually use.

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