Dorset Council Tax Reduction for Disabled People, PIP Recipients and Carers

Which Disability Benefits Are Fully Disregarded

Dorset Council's income-banded Council Tax Reduction scheme excludes several disability-related incomes entirely from the assessment. These do not count toward your weekly net income at all:

• Personal Independence Payment (PIP) — both daily living and mobility components
• Disability Living Allowance (DLA) — all components
• Attendance Allowance
• Carer's Allowance
• War Disablement Pension

If you are on Universal Credit, the Disabled Child element, LCW (Limited Capability for Work) element, LCWRA (Limited Capability for Work-Related Activity) element, Carer element, and Housing element are also fully disregarded before your income is mapped to the band grid.

In practical terms: if PIP is a single disabled person's only income, their assessable weekly income is £0.00, placing them in Band 1 — a 100% council tax discount.

The £50 Disability Disregard

On top of excluding disability benefits from the income count, Dorset Council applies a flat-rate £50 per week Disability Disregard to total household income when any member of the household receives a qualifying disability benefit.

This means if a disabled person in the household also works part-time, the calculation deducts the standard £20 earned income disregard from net earnings, then subtracts the additional £50 disability disregard from total assessable household income. A single disabled person earning £200 per week net and having no other assessable income would have £130 assessable income, placing them in Band 2 (80% discount). Without the £50 disability disregard, their £180 assessable income would place them in Band 4 (40% discount).

Carers and Carer's Allowance

Carer's Allowance is 100% disregarded under the Dorset scheme. It does not count as income at all.

If you are a carer living with the person you care for, and that person receives PIP or DLA, the household also benefits from the £50 disability disregard. The combination of fully disregarded Carer's Allowance, fully disregarded disability benefits, and the £50 disregard from total assessable household income means many carer households end up in Band 1 (100% discount) or Band 2 (80%).

A couple where one person receives PIP daily living and the other receives Carer's Allowance, with the carer also working 16 hours a week at minimum wage (roughly £190 net per week) and no other assessable income, would calculate like this: £190 − £20 earned income disregard − £50 disability disregard = £120 assessable. For a couple, Band 1 runs to £154.00 — so they qualify for a full 100% discount.

Disabled Band Reduction Scheme

Separately from Council Tax Reduction, if someone in your household needs extra space or modifications because of a disability — a room mainly used for medical treatment, an additional bathroom or kitchen, or wheelchair circulation space — the property can be charged at one band lower than its valuation. A Band D property is charged as Band C, for example.

This reduction applies before CTR is calculated, lowering the base liability that CTR then discounts. You apply directly to Dorset Council with medical evidence of the disability-related need.

Severe Mental Impairment Disregard

A person certified by a registered medical practitioner as having a severe impairment of intelligence and social functioning, who also receives a qualifying disability benefit (such as PIP daily living), is "disregarded" for council tax purposes. If they live alone, the property qualifies for a full Class U exemption — no council tax at all. If they live with one other adult, the household qualifies for the 25% Single Person Discount because the SMI person is disregarded.

Read more in our severe mental impairment council tax guide.

How to Apply

Apply through the Dorset Council benefits portal at dorsetcouncil.gov.uk. You will need:

• PIP, DLA, or Attendance Allowance award letters
• Carer's Allowance confirmation (if applicable)
• Payslips if you or your partner work alongside caring or disability
• Full UC award statement breakdown (if on Universal Credit)
• Bank statements for all accounts (1–3 months)

The Dorset Council Tax Reduction guide includes a step-by-step income calculation worksheet that shows exactly how the disability disregard and benefit exclusions lower your band placement — so you know what to expect before you apply.

See more England guides →