Council Tax help with Attendance Allowance, dementia and caring

Attendance Allowance (AA) does not reduce Council Tax on its own, but it is the key that unlocks several Council Tax discounts. Councils will not apply them automatically: you have to ask.

1. Council Tax Reduction

Council Tax Reduction (CTR) is a means-tested discount run by each council. AA is not counted as income, and for pension-age households getting AA can add a severe disability amount to the calculation, which can increase the reduction. If you get the guarantee element of Pension Credit, you may get CTR in full.

2. Severe mental impairment (dementia)

Someone with a severe mental impairment, such as dementia, who gets a qualifying benefit like AA is “disregarded” for Council Tax. If they live alone, the property is exempt. If they live with one other adult, the bill gets a 25% discount. A doctor must confirm the impairment. See Council Tax discount for dementia.

3. Carer disregard

A live-in carer can be disregarded for Council Tax if they provide at least 35 hours of care a week, are not the person’s partner (or the parent of a child under 18 they care for), and the person they care for gets certain disability benefits, such as the higher rate of Attendance Allowance. This can bring a single person discount into play.

4. Disabled band reduction

If the home has a feature needed because of a disability, such as an extra bathroom, a room used for treatment or space for a wheelchair, the bill can be reduced by one band. AA is not required for this.

5. If someone moves into a care home

An empty home may be exempt from Council Tax while the owner lives permanently in a care home. Tell the council when the move happens.

How to apply

1. Check your council’s website for “Council Tax discounts and exemptions” and “Council Tax Reduction”.
2. Send proof of AA (the award letter) and, for dementia, the doctor’s confirmation.
3. Ask for any discount to be backdated to when you first qualified.

See also Attendance Allowance: who qualifies and benefits you can still claim in a care home.

Reviewed by The Care Panel team on 27 October 2026. This guide is general information about care in England, not legal, medical or financial advice. Rules and rates change; check with your council or an adviser before making decisions.