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Home Council Tax Council Tax Hardship Fund — Section 13A Relief Explained
Council Tax

Council Tax Hardship Fund — Section 13A Relief Explained

CT
Chandraketu Tripathi
Finance Editor, Kaeltripton
Published 27 Apr 2026
Last reviewed 27 Apr 2026
✓ Fact-checked
Kael Tripton — UK Finance Intelligence
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Part of: UK Council Tax 2026 — Complete Guide to Bands, Discounts, Exemptions & AppealsCouncil Tax Reduction 2026 — Who Qualifies and How to Apply

TL;DR: Every English billing council has an absolute discretionary power under Section 13A of the Local Government Finance Act 1992 to reduce or remit any Council Tax bill in cases of exceptional hardship. This is separate from the standard Council Tax Reduction scheme and is decided case by case with no statutory eligibility criteria. It can reduce a bill to zero and can cover situations that standard CTR cannot.

Last reviewed: 27 April 2026

The Section 13A Power and What Makes It Different

Section 13A(1)(c) of the Local Government Finance Act 1992 gives every billing authority in England an absolute and unconditional power to reduce or remit any person's Council Tax liability - for any reason the council considers appropriate.

This is fundamentally different from the standard Council Tax Reduction (CTR) scheme in three ways:

No eligibility criteria: CTR schemes have published rules about income thresholds, capital limits, and applicable amounts. Section 13A has none. Any household can apply, regardless of income or savings, if they can demonstrate exceptional circumstances.

Complete discretion: The council decides on a case-by-case basis. No two applications are judged against the same rulebook. The council considers the totality of circumstances.

Maximum flexibility: The reduction can be for any amount, for any period, for any reason the council deems appropriate. A council could remit an entire year's Council Tax liability in one award.

The MHCLG publishes guidance on how councils should develop their Section 13A policies, and the IRRV (Institute of Revenues, Rating and Valuation) provides professional guidance on application procedures.

What Counts as Exceptional Hardship

No statutory definition of "exceptional hardship" exists under Section 13A. Each council defines this in its own published policy. However, commonly cited scenarios that have resulted in Section 13A awards include:

Domestic violence relocation: A person who has fled domestic violence to emergency accommodation or a refuge may have no established income, no benefit claim set up, and no Council Tax Reduction yet in place at the new address. A Section 13A award can cover the Council Tax gap while the situation stabilises. Many councils have specific provisions for domestic violence cases, sometimes linked to the government's Sanctuary Scheme.

Fire or flood damage: A property made uninhabitable by fire or flooding but still technically assessed for Council Tax (because it has not been removed from the valuation list) can attract Section 13A relief during the displacement period.

Terminal illness: A household whose income has dropped sharply because a working adult has received a terminal diagnosis may not yet be receiving the DWP benefits that would passport them to maximum CTR. Section 13A bridges this gap.

Universal Credit migration gap: The transition from legacy benefits to Universal Credit can create a gap of several weeks with no income. Existing CTR may be disrupted. Section 13A can provide emergency cover.

Exceptional disability costs: A household facing extraordinary disability-related expenditure that leaves genuinely insufficient income to pay Council Tax after those costs, even after standard CTR, may qualify for a Section 13A top-up.

How to Apply

Section 13A has no national application form. Each council has its own process:

Dedicated form: Many councils have a downloadable "discretionary council tax reduction" or "Section 13A relief" application form on their website. Search "[council name] discretionary council tax" or "Section 13A."

Written letter: Some councils prefer or require a written letter setting out the exceptional circumstances. The letter should explain: (a) what the exceptional circumstance is; (b) why standard CTR is insufficient; (c) what amount of help is needed and for how long.

In-person appointment: Some councils offer an interview for complex cases, particularly domestic violence or terminal illness situations.

Evidence to gather before applying:

  • Medical evidence (GP letter, consultant letter, DWP award letter) for health-related cases
  • Police report, sanctuary scheme letter, or refuge confirmation for domestic violence
  • Bank statements for the period showing the hardship (zero balance, missed payments)
  • Evidence of the exceptional event (fire report, insurance claim, flood notice)

Typical Award Amounts and Duration

Section 13A awards are highly variable by case and council, but patterns include:

One-off emergency payments: £100 to £500 applied to the Council Tax account in crisis situations.

Short-term remission: Full or partial Council Tax remission for 3 to 6 months during a crisis period. Often reviewed at the end of the period.

Full-year remission: In cases of terminal illness or particularly acute domestic violence displacement, some councils have remitted the full year's Council Tax.

Top-up of standard CTR: Where a council's maximum CTR is 75% and the remaining 25% creates genuine hardship, Section 13A can award the extra 25%.

How Much Councils Budget for Section 13A

Every billing council must fund Section 13A awards from its revenue budget. The amount varies significantly:

Large metropolitan councils: May budget several hundred thousand pounds annually, reflecting the higher volume of hardship cases in densely populated areas with significant deprivation.

Small district councils: May budget a few thousand pounds, reflecting smaller populations and fewer hardship applications.

The budget constraint in practice: Once the Section 13A budget is exhausted, councils technically retain the power to make awards but face an unbudgeted cost. Some councils suspend awards once the budget is spent. Others find additional funding from reserves for the most compelling cases. This creates a timing advantage for earlier applications: April to September applications are more likely to find budget than January to March ones.

The Relationship Between Section 13A and Other Support Routes

Section 13A does not replace other support routes - it supplements them. Before applying for Section 13A, ensure you have explored:

Council Tax Reduction (CTR): The standard means-tested scheme. Apply first. Section 13A fills gaps CTR cannot cover.

Discretionary Housing Payment (DHP): For housing costs (rent shortfalls), administered separately by the council. Not a Council Tax tool, but relevant where housing and Council Tax pressures compound.

Local welfare assistance: Most councils operate a local welfare assistance scheme for one-off items (white goods, emergency food, utility costs). Separate from Council Tax but useful in the same hardship scenarios.

Charitable support: StepChange Debt Charity, National Debtline, and Citizens Advice all offer free debt advice that can encompass Council Tax arrears. These organisations can help you prepare the strongest possible Section 13A application.

The Budget Constraint

Every council sets a budget for Section 13A awards in its annual financial plan. When the budget is exhausted, councils technically retain the power to make awards but face the funding constraint. Applications made earlier in the financial year (April to August) are more likely to find budget available than late-year applications (January to March).

Appeal and Challenge

There is no statutory right of appeal to the Valuation Tribunal against a refusal to award Section 13A relief. However:

Internal review: Councils should offer an internal review process where a senior officer not involved in the original decision reconsiders the case.

Local Government Ombudsman: If a council has an unlawful blanket policy of never awarding Section 13A relief, or has acted procedurally unfairly, the Local Government Ombudsman can investigate.

Citizens Advice: Citizens Advice can advocate on your behalf in complex Section 13A cases and is referenced in IRRV's debt advice guidance as a key signposting resource.

Frequently Asked Questions

My CTR covers 75% of my bill - can Section 13A cover the remaining 25%?

Yes. Section 13A can be applied on top of CTR to reduce or eliminate the residual liability. If the remaining 25% creates genuine, demonstrable hardship - not just inconvenience - the case for a Section 13A top-up is strong. Apply with bank statements showing the hardship and an explanation of why the residual is unmanageable.

A council with no Section 13A scheme at all would be acting unlawfully. Every billing authority is required to have a policy for exercising the section 13A power. However, councils can have restrictive policies - for example, limiting awards to domestic violence or terminal illness cases only. Contact the Local Government Ombudsman if you believe the council is unlawfully refusing to consider Section 13A.

I'm in arrears - can Section 13A cover my debt?

Some councils apply Section 13A to arrears as well as current-year liability in exceptional circumstances. Apply and explain the circumstances that led to the arrears as well as the current situation. Not all councils apply Section 13A retrospectively.

How quickly is a Section 13A application typically processed?

Processing times vary significantly - from approximately 1 week for urgent crisis cases to 6 to 8 weeks for complex cases. If enforcement action is imminent, contact the council immediately and ask them to hold enforcement while the Section 13A application is considered. Most billing councils will pause active enforcement for genuine hardship applications being actively assessed.

Does Section 13A appear on my credit file or affect borrowing?

No. A Section 13A award is a Council Tax reduction, not an insolvency or debt arrangement event. It does not appear on your credit file and does not affect your credit score. Council Tax itself (specifically, County Court judgments arising from unpaid Council Tax debt) can appear on credit files - but a Section 13A reduction, which reduces or removes the liability entirely, has no credit reporting consequences.

How we verified this

Section 13A(1)(c) of the Local Government Finance Act 1992 provides the statutory basis. MHCLG guidance on local CTR scheme design includes Section 13A policy requirements. The IRRV's practitioner publications cover Section 13A administration, evidential requirements, and the appeal process. Citizens Advice is cited in IRRV debt advice guidance as a key third-sector support resource.

Sources & Verification

  • Local Government Finance Act 1992 (s13A): https://www.legislation.gov.uk/ukpga/1992/14/section/13A
  • MHCLG Council Tax guidance: https://www.gov.uk/government/collections/council-tax-statistics
  • IRRV (Institute of Revenues, Rating and Valuation): https://www.irrv.net/
  • gov.uk Council Tax Reduction: https://www.gov.uk/council-tax-reduction
  • Citizens Advice Council Tax hardship: https://www.citizensadvice.org.uk/debt-and-money/council-tax-debt/

This article is for informational purposes only and does not constitute legal, financial, or tax advice. Council Tax rules vary by local authority and change annually. Always verify current rates and rules with your local council and gov.uk before making any decision.

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The content on Kaeltripton.com is for informational and educational purposes only and does not constitute financial, investment, tax, legal or regulatory advice. Kaeltripton.com is not authorised or regulated by the Financial Conduct Authority (FCA) and is not a financial adviser, mortgage broker, insurance intermediary or investment firm. Nothing on this site should be construed as a personal recommendation. Rates, figures and product details are indicative only, subject to change without notice, and should always be verified directly with the relevant provider, HMRC, the FCA register, the Bank of England, Ofgem or other appropriate authority before any financial decision is made. Past performance is not a reliable indicator of future results. If you require regulated financial advice, please consult a qualified adviser authorised by the FCA.

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Chandraketu Tripathi
Finance Editor · Kaeltripton.com
Chandraketu (CK) Tripathi, founder and lead editor of Kael Tripton. 22 years in finance and marketing across 23 markets. Writes on UK personal finance, tax, mortgages, insurance, energy, and investing. Sources: HMRC, FCA, Ofgem, BoE, ONS.

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