Money Saving Expert Martin Lewis has provided an update for state pensioners on rumours regarding the potential removal of the 25 percent single-person council tax discount.

This discount currently benefits nearly 8.4 million people, with state pensioners making up almost half of them.

During a heated parliamentary session a few weeks ago, Tory MP Louie French challenged Sir Keir Starmer about the future of the discount.

Sir Keir responded: “I am not going to pre-empt the Budget. It will all be set out in due course,” leading to concerns that this crucial benefit might be scrapped in the upcoming Autumn Budget.

However, Martin Lewis dispelled these fears in a recent post on social platform X, stating: “Pleased to say it seems this is NOT happening.

“@Telegraph reporting Treasury has now ruled out getting rid of the council tax single person discount (having previously not ruled it out when asked) in the coming budget.”

This will come as welcome news, as scrapping the discount could have seen pensioners living in the average council tax Band D see their tax bills rise by as much as £543 per year.

Chancellor Rachel Reeves will announce the Labour Party’s Autumn Budget for the next fiscal year on Wednesday, October 30.

What is Council Tax?

Council Tax is a form of local taxation, based on the value of someone’s property, that helps pay for services in the area, such as rubbish collection, road maintenance, elderly care, police, and so on.

It can add a sizeable amount to a household’s monthly outgoings, however, some groups can have their bills discounted by claiming Council Tax Support.

What is Council Tax Support?

Council Tax Support, also known as Council Tax Reduction, is a benefit to help people who are on a low income or claiming certain benefits to pay their Council Tax bill.

There is no specific amount of council tax support someone may be entitled to, the rate depends on the person’s circumstances and where they live. However, discounts range between 25 percent and 100 percent.

Those who receive the Guarantee Credit part of Pension Credit might be able to get their council tax paid in full. It’s thought that as many as 800,000 more pensioners could be eligible for Pension Credit but aren’t claiming, making it crucial for people aged 66 and over - or their loved ones - to check eligibility.

As each local council run its own Council Tax Support schemes, how a person makes a claim might differ depending on where they live. However, the first thing a person should do when making a claim is to contact their local council. People can find out what theirs might be by typing their postcode into this Government tool.

A 25 percent discount on an average Band D bill in England would be worth £394.