Tower Hamlets Council Tax Reduction If You Get ESA, PIP, or Carer's Allowance

Receiving disability or carer's benefits does not by itself guarantee Council Tax Reduction or a full award in Tower Hamlets. Some benefits affect the means test, while others can qualify you for specific protections. Here's how the main benefit types affect your claim.

Passported Benefits: Automatic Full Support

Certain means-tested benefits "passport" you directly to maximum CTR without a separate income assessment. In Tower Hamlets, if you or your partner receive any of these, you qualify for up to 100% council tax support (subject only to non-dependant deductions):

• Income Support
• Income-based Jobseeker's Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)

These benefits already confirm that your income is at or below the baseline the government considers adequate. Tower Hamlets treats that confirmation as sufficient — no further means test needed.

If you receive "new style" (contribution-based) ESA or JSA instead, you're not automatically passported. The council runs a full means test on your household income, though the benefit itself is counted as income in the calculation.

How PIP and DLA Affect Your Claim

Personal Independence Payment (PIP) and Disability Living Allowance (DLA) are not means-tested — they're based on how your condition affects your daily life, not your income. They are completely disregarded as income in the CTR means test. Receiving PIP or DLA does not reduce your award.

More importantly, PIP and DLA trigger specific protections within the CTR calculation:

Disability premiums. Tower Hamlets adds disability premiums to your "applicable amount" — the baseline figure your income is measured against. A higher applicable amount means the gap between your income and the threshold is smaller (or doesn't exist), resulting in a higher CTR award.

Non-dependant deduction exemption. If you or your partner receives the Care Component of DLA or Attendance Allowance, all non-dependant deductions are cancelled. This is a significant protection — normally, an adult relative earning £370.50 or more per week living in your home would disqualify your entire CTR claim. With the DLA Care Component, their income is irrelevant to your council tax support.

Carer's Allowance

Carer's Allowance is counted as income in the CTR means test, and a carer premium may also be included in your applicable amount. The two figures do not necessarily cancel each other out, so check how both appear in the council's calculation. Carer's Allowance is £86.45 per week in 2026/27.

If you care for someone who receives the DLA Care Component or the daily living component of PIP, you may qualify for Carer's Allowance if you also meet its other conditions, including providing at least 35 hours of care a week. Establishing entitlement may affect the carer premium in your CTR calculation.

Attendance Allowance

Attendance Allowance (for people over State Pension age who need help with personal care) is fully disregarded as income in the CTR calculation. Like DLA, it also exempts the household from non-dependant deductions.

What to Do If You're Already Receiving Benefits

If you're on a passported benefit and haven't yet applied for Council Tax Reduction, you're likely missing support you're entitled to. The application is separate from your DWP benefits — Tower Hamlets needs you to complete their online form even if the DWP has notified them of your award.

If you're already receiving CTR and your disability benefit changes — for example, you move from DLA to PIP after a reassessment, or your ESA moves from contribution-based to income-related — report the change to Tower Hamlets Benefits Service within one month. This protects your entitlement to any increased support from the date of the change.

For a complete walkthrough of how the means test works with disability and carer benefits, including worked examples with real 2026/27 figures, see the Tower Hamlets Council Tax Reduction guide.

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