Applying for council tax reduction and housing support after an accident

By Chris Salmon | Updated: September 15, 2025

If you have been injured in a work accident and your income has dropped, you may be worried about paying household bills. Two important forms of support you can apply for are Council Tax Reduction (CTR) and Housing Benefit or the housing element of Universal Credit. This guide explains who can apply, what evidence you need, and how these benefits interact with a personal injury claim.

What is Council Tax Reduction?

Council Tax Reduction (sometimes called Council Tax Support) is a means-tested benefit provided by your local authority. If you qualify, it reduces the amount of council tax you need to pay. The amount of reduction depends on your income, savings, household size and circumstances.

Each local authority runs its own CTR scheme, so the rules can vary. Most councils have an online calculator or application form.

What housing support is available?

If you rent your home and your income has fallen after an accident, you may be able to claim support with rent. Depending on your situation, this may be through:

• Housing Benefit: Available if you are of State Pension age or live in supported housing.
• Universal Credit housing element: Available if you are of working age and pay rent.

The amount you receive depends on your rent, household income and savings. Payments usually go directly towards your rent, either to you or your landlord.

Who is eligible?

You may qualify for CTR or housing support if:

• Your income has fallen because of time off work after your accident.
• You are receiving Statutory Sick Pay (SSP) or Employment and Support Allowance (ESA).
• You are claiming Universal Credit following your accident.
• Your total household capital is below £16,000 (unless you receive certain disability benefits).

What evidence will I need?

When applying, you will need to provide evidence such as:

• Recent payslips or confirmation that you are no longer receiving wages.
• Details of any benefits you are claiming (SSP, ESA, Universal Credit).
• Bank statements to confirm savings and capital.
• A tenancy agreement or rent statement if applying for housing support.
• Medical evidence of your accident or ongoing condition may also help (see NHS guidance on medical reports).

Will my injury compensation affect these benefits?

Yes, potentially. Council Tax Reduction and housing support are means-tested. This means the amount you receive depends on your income and savings. If you receive a lump sum of personal injury compensation, it could affect your entitlement.

However, if you set up a personal injury trust, your compensation can be kept separate from your savings and may not reduce your benefits. You should take legal advice before receiving a large settlement to avoid losing access to support.

How to apply

1. Check your local council website: Applications for CTR are made through your local authority. Use the Apply for a Council Tax reduction.
2. Apply for housing support: If you are of working age, apply through your Universal Credit account. If you are over State Pension age, apply to your council for Housing Benefit.
3. Gather evidence: Prepare all supporting documents before applying to avoid delays.
4. Seek advice: If you are unsure, speak to Citizens Advice or your solicitor for guidance.

Further help

If you have questions about how benefits interact with compensation, see our cluster guides:

• Will an injury compensation claim affect my benefits?
• Financial support if you can’t work after an accident