Scottish Government Financial Boost 2025: The Scottish Government is expanding a scheme aimed at helping struggling households manage Council Tax debt, thanks to £2.2 million in additional funding. This will allow Citizens Advice Scotland to roll out the initiative nationwide, after it was successfully trialled in nine local authority areas.
The expansion comes as local councils increase Council Tax rates, with Falkirk Council imposing a 15.6% rise, the highest in Scotland. The debt support scheme aims to promote a “dignified and empathetic” approach to debt collection, helping over 1,600 people so far.
What the Scottish Government Says
Housing Minister Paul McLennan highlighted the impact of Council Tax debt, stating:
“Any type of debt, including Council Tax debt, puts pressure on households and can cause real difficulties for family finances. Empathy and dignity must be at the heart of debt support.”
He added that the scheme:
- Helps non-digital users access support
- Connects people with mental health services if needed
- Encourages early intervention to prevent financial crisis
The scheme is part of a broader strategy to tackle poverty, alongside:
- £6.9 billion investment in social security
- £37 million expansion of free school meals
- Scottish Child Payment increases
Who Can Get a Council Tax Reduction?
Many Scottish residents may be eligible for a Council Tax discount but are unaware of it.
You Do Not Need to Pay Council Tax If:
- You are a full-time student
- You are in the Armed Forces and live in Forces accommodation
- You live in a care home or hospital
- Your home is empty for up to six months (e.g., due to hospitalisation)
- You have a severe mental impairment (e.g., dementia)
You Could Get a Reduction If:
- Living alone? Apply for a 25% discount
- Under 18, a full-time student, student nurse, apprentice, or trainee? You don’t count towards the Council Tax calculation
- Carer providing 35+ hours of care per week? You may be disregarded for Council Tax purposes
- Disabled person at home? You may get your property moved to a lower band
Additional Council Tax Reduction Options
- You can spread payments over 12 months instead of 10
- Some councils offer discounts for paying the full amount upfront
- If your home’s value has dropped (e.g., due to nearby construction or home adaptations for a disabled person), you can apply for a Council Tax band reassessment
How to Apply for Council Tax Reduction
You may qualify for Council Tax support if you:
Have a low income or receive certain benefits
Own or rent your home
Are working or unemployed
Your local council determines how much support you receive, based on:
- Your income and savings
- Your household members
- The Council Tax rate in your area
Check Your Eligibility & Apply
Use the Council Tax Reduction calculator on mygov.scot
Contact your local council for an application
With rising Council Tax bills and thousands struggling with debt, this nationwide expansion of Citizens Advice Scotland’s support scheme is a vital step to help households manage financial hardship. If you’re on a low income, caring for someone, or have a disability, check if you’re eligible for a Council Tax reduction and apply through your local council.
FAQ’s
What is the new Scottish Government Council Tax support scheme?
The scheme helps households struggling with Council Tax debt by providing advice and support. It has now been expanded nationwide with £2.2 million in extra funding.
Who qualifies for a Council Tax reduction in Scotland?
People on a low income, student households, carers, and those with a disability may qualify for a Council Tax reduction. Full-time students, Armed Forces personnel in Forces accommodation, and those with severe mental impairments may be exempt.
How much can I save with a Council Tax Reduction?
The average savings for eligible households are over £850 per year. The amount depends on your income, household situation, and local council rules.
How do I apply for a Council Tax Reduction?
You can check eligibility and apply through mygov.scot or by contacting your local council directly.
Can I get a discount on my Council Tax if I live alone?
Yes, single occupants are eligible for a 25% Council Tax reduction, regardless of their financial situation.
