Manchester Council Tax Hardship Fund and Discretionary Payments

What the Discretionary Payment Is

Manchester City Council runs a Discretionary Council Tax Payment (DCTP) scheme under Section 13A(1)(c) of the Local Government Finance Act 1992. It sits outside the main Council Tax Support scheme — a separate pot of money for residents in exceptional financial hardship who need more help than the standard CTS award provides.

You do not need to be receiving Council Tax Support to apply. The DCTP is open to any Manchester resident who can demonstrate severe hardship linked to their council tax liability.

Who Qualifies

There is no fixed income threshold or points-based test. The council assesses each application on its own merits. Priority goes to:

• Households whose income dropped suddenly — redundancy, illness, relationship breakdown
• Residents already receiving maximum CTS but still unable to afford the 15% minimum payment
• Vulnerable individuals with exceptional healthcare costs or disability-related expenses
• Households facing imminent enforcement action (a liability order, bailiff referral) where a short-term award would prevent escalation

The award is short-term relief, not a permanent reduction. The council expects your circumstances to stabilise or an alternative long-term plan to be in place.

The Terminal Illness Route (SR1 Form)

Manchester updated its Discretionary Council Tax Policy in 2025 to include a 100% council tax discount for terminally ill residents who hold an SR1 form, previously known as DS1500. Ask your GP or specialist whether an SR1 is appropriate; a clinician completes it.

This is separate from the main CTS scheme. A terminally ill resident who already receives 85% Council Tax Support may be awarded further DCTP relief against the remaining 15%, reducing the council tax liability to zero if the council grants enough support.

If you or a family member holds an SR1 form, contact the council's Benefits Service on 0161 234 5002 and ask specifically about the SR1 council tax discount. It is not prominently advertised on the website.

How to Apply

Use the council's current DCTP application route on manchester.gov.uk, or call the Benefits Service on 0161 234 5002 to ask how to apply.

When you apply, explain:

• What changed in your circumstances (job loss, illness, benefit reduction)
• What you have already done to manage (payment plan, benefit claims, debt advice)
• Why the standard CTS award is not enough
• How long you expect the hardship to last

Supporting evidence helps: a redundancy letter, medical records, a breakdown of essential outgoings versus income, or a debt advice report from Citizens Advice or StepChange.

What to Expect

The council decides on a case-by-case basis. DCTP awards provide short-term relief; the council decides the amount and duration.

If your application is refused, the council must explain why. The Section 16 dispute route also covers decisions on Section 13A hardship applications: submit a written request for review to the council. If the council rejects it, you have 2 months from the rejection notice to appeal to the Valuation Tribunal for England. If the council does not respond within 2 months, the appeal deadline is 4 months from the date you submitted your written request. Repeat applications are considered if your financial circumstances significantly deteriorate and you can document the change.

DCTP vs. Household Support Fund

The Household Support Fund is a separate central government scheme distributed through local councils. Manchester has used HSF money for energy vouchers, food support, and emergency payments. It is not the same as the DCTP and has its own application routes. If you are in crisis, ask about both — the Benefits Service can direct you to whichever scheme fits your situation.

If you are struggling with the 15% minimum payment after Council Tax Support, the Manchester Council Tax Reduction guide explains how to stack discounts, request 12-month billing, and apply for the DCTP with the right evidence.

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