Care Leavers and Council Tax: Why You May Pay Nothing Until You Are 25

If you are a care leaver in England or Wales, you may be entitled to a full council tax exemption — meaning you pay nothing — until you reach the age of 25. This is one of the most important but least-claimed financial reliefs for young people who have been in local authority care. Here is a clear guide to how it works and how to make sure you get it.

What Is a Care Leaver?

A care leaver is someone who has been in the care of a local authority — meaning they were looked after by the council under the Children Act 1989 — at some point after their 16th birthday. This includes people who were placed in foster care, residential care homes, or other forms of local authority accommodation.

If you were in care for any period after you turned 16, you are likely to be a care leaver for the purposes of the council tax exemption. You do not need to have been in care continuously or for a set minimum length of time.

What Does the Council Tax Exemption Mean?

Under government policy introduced in 2019 and strengthened by subsequent local authority guidance, all councils in England are expected to provide care leavers with a full council tax exemption (100 per cent reduction to zero) from when they leave care until they reach the age of 25. The exemption applies regardless of the care leaver’s income or circumstances.

In practice, this is implemented through each council’s local council tax reduction scheme. Because each council runs its own scheme, the exact eligibility rules and application process differ between councils — but the national expectation is that all care leavers under 25 should receive a full exemption.

In Wales, the Welsh Government introduced a statutory scheme from April 2024 that requires all Welsh local authorities to exempt care leavers from council tax until their 25th birthday. This makes the entitlement statutory in Wales — stronger than the non-statutory policy position in England.

Which Council Do You Apply To?

You apply for the care leaver council tax exemption from the local council in whose area you currently live — that is, the council that covers your home address. This is separate from the council that looked after you as a child. You do not need to live in the area of your home council to qualify.

How to Apply

The application process varies by council, but the general steps are:

1. Contact your local council’s revenues team and ask about the care leaver council tax exemption.
2. You will need to prove that you are a care leaver. This can usually be done by providing a letter or certificate from your former local authority confirming your care-experienced status, or by contacting your personal adviser (PA) from your leaving care team.
3. Submit any supporting documents the council requests.
4. The council will apply the exemption to your account, usually backdated to your move-in date or your 18th birthday (or whenever you left care), whichever is most recent.

If you have a personal adviser through your leaving care team, ask them to help you with the application. Many councils have arrangements with leaving care teams to streamline the process.

What If You Owe Council Tax Arrears?

If you owe council tax arrears that built up before you were aware of the exemption, apply immediately and ask the council to backdate the exemption as far as possible. If the arrears arose during the period the exemption should have applied, the council should write off those arrears when they apply the backdated exemption.

If you are experiencing enforcement action — such as a bailiff threat or summons — contact your personal adviser and the council’s revenues team urgently. Explain you are a care leaver and ask for enforcement to be paused while your exemption is assessed.

What If the Council Refuses?

If your council refuses to apply the care leaver council tax exemption, or claims not to have such a scheme, you have options:

• Ask for the refusal in writing and the specific reason
• Request a formal review of the decision through the council’s internal appeals process
• Contact your MP or local councillor for support
• In Wales, where the exemption is statutory, the refusal may be legally challengeable
• Seek advice from Citizens Advice, the Care Leavers Association, or Council Tax Advisors

No council in England or Wales should be refusing care leavers under 25 a council tax exemption. If you are being refused, challenge it.

What Happens After You Turn 25?

When you reach 25, the care leaver exemption ends. You will become liable for council tax in the normal way. However, you may still qualify for other council tax reductions — particularly council tax reduction (means-tested support) if you are on a low income. Apply to your council for council tax reduction as soon as the exemption ends, or before, so there is no gap in support.

Help and Support

If you are a care leaver and unsure whether you are receiving the council tax support you are entitled to, Council Tax Advisors can help. We can advise you on your entitlement, help you apply, and support you if your application is refused. Contact us for free, confidential guidance.

Summary

1. Care leavers in England and Wales are entitled to a full council tax exemption until the age of 25
2. In Wales, this is a statutory right. In England, it is implemented through each council’s local scheme
3. Apply to your current local council, not your former care authority
4. Provide proof of your care-experienced status — your personal adviser can help
5. If you owe arrears from before you knew about the exemption, ask for backdating
6. Challenge any refusal — no council should be refusing care leavers under 25

Disclaimer: This article is for general information only. Council schemes and rules vary. Seek advice specific to your situation from an independent adviser or your leaving care team.