Council tax disregards for apprentices and carers

Some people are not counted (‘disregarded’) when calculating how many people live in a property for council tax purposes, for example full time students. If there are 2 adults in a property and one is disregarded, a 25% discount applies. If all adults are disregarded, a 50% discount applies.

As part of consultations on potential wider changes to council tax, the English and Welsh governments have asked for views on the appropriateness of the current disregards for carers and apprentices.

As we have expertise on the work arrangements of apprentices and care workers, we take the opportunity to make the following points:

Care Workers:

• The current professional live-in carer disregard has a very low remuneration threshold that does not reflect modern employment practices.
• The landscape of care provision has shifted toward live-in care facilitated by direct payments and/or commercial agencies.
• Without an updated disregard, individuals receiving live-in care may inadvertently lose single person discounts, undermining the policy objective of supporting independent living.
• LITRG recommends retaining and reviewing the professional carer disregard to align with contemporary care arrangements, accompanied by clear national guidance for consistent application.

Apprentices:

• The apprentice disregard has a low earnings limit, limiting eligibility and reducing its practical impact.
• Administrative barriers and inconsistent local guidance may be further restricting access for eligible apprentices.
• LITRG recommends uprating the earnings threshold to reflect current NMW/NLW rates and clarifying whether the policy should support all apprentices or only younger entrants.
• Simplified application processes and active promotion are also essential to ensure equitable access.