Low-Paid Care Worker Council Tax Disregard: The £44 Rule

A Separate Route with Strict Limits

The council tax carer disregard has two legal routes. The one most people know about is for unpaid family or friend carers (35 hours, qualifying benefit, no partner relationship). The second is for low-paid live-in care workers, and it operates under completely different rules.

This route is set out in the Council Tax (Additional Provisions for Discount Disregards) Regulations 1992 (SI 1992/552). It exists for care workers who live in the home where they provide care, are employed through a qualifying organisation, and earn very little.

The Four Conditions

All four must be met simultaneously:

1. Employment source — The care worker must be employed by a local authority, a public body, or a charity. Alternatively, they can be employed directly by the person receiving care (or their family), provided they were introduced to the household by a local authority, public body, or charity.

Being placed by a private agency is not enough by itself: eligibility depends on whether the worker is employed by a local authority, public body, or charity, or is employed directly by the person receiving care (or their family) after an introduction by one of those bodies.

2. Minimum hours — At least 24 hours of care work per week. Lower than the 35-hour threshold for unpaid carers.

3. Earnings cap — £44 per week maximum — The total gross remuneration must not exceed £44 per week. This includes all cash payments, allowances, and monetary bonuses. It does not include the value of free board and lodging provided as part of the employment arrangement — accommodation, meals, and utilities provided in kind don't count toward the cap.

4. Residence in employer-provided accommodation — The care worker must live in premises provided by, or on behalf of, the employer or charity for the better performance of their duties.

Why the £44 Cap Makes This Route So Narrow

The £44 limit has been unchanged since 2007, when it was uprated from £36. At the 2026/27 National Minimum Wage rate (£12.71 per hour for workers aged 21 and over), a care worker doing 24 hours at minimum wage earns about £305 per week — nearly seven times the cap.

In practice, this route applies almost exclusively to:

• Charity volunteers receiving pocket money or a modest stipend
• Religious community members placed in caring roles through their organisation
• Supported living placements arranged by local authorities where the worker receives a nominal payment alongside free board

A commercially employed live-in carer paid at market rates — typically £800–£1,200 per week — cannot qualify. The route was designed in 1992 for a labour market that no longer exists at these pay levels.

Wales has consulted on updating or removing the earnings limit entirely. In England, the £44 cap under SI 1992/552 remains in force for 2026/27 with no announced changes.

Evidence the Council Needs

For an employed care worker claim, the council requires:

• A contract of employment detailing weekly care hours (minimum 24)
• Payslips or a financial statement showing that total weekly pay does not exceed £44
• Written confirmation from the introducing charity or local authority confirming the referral or placement
• Proof that the accommodation is occupied under employment terms — not as an independent tenant

There is no national standard form for this route. Local authority revenue officers evaluate submitted documentation on a case-by-case basis.

Key Differences from the Unpaid Carer Route

The critical advantage of the employed care worker route: there is no spousal or partner exclusion. A husband or wife employed as a low-paid carer through a charity introduction could qualify — though the £44 cap makes this scenario almost theoretical.

If you're a care worker placed through a charity or council and you think you might qualify, the Council Tax Carer Disregard Guide covers both routes in detail, including the evidence requirements and how to apply with your billing authority.

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