A terminal illness diagnosis can turn everyday life upside down. Alongside the emotional toll, families suddenly face reduced income, rising care costs, and the challenge of navigating support systems. For households already stretched emotionally and financially, even routine expenses such as Council Tax can become a huge financial burden.
Recognising this, the Knowsley Council in England has introduced a new Council Tax discount for residents living with a terminal illness. Under this scheme, which took effect from 1 April 2026, eligible households may be able to reduce their Council Tax bill by up to 100%, depending on their circumstances and any other discounts they may be entitled to.
What Counts As Terminal Illness for this Council Tax Discount?
For this Council Tax discount, a terminal illness is a progressive, incurable medical condition that cannot be adequately treated and is expected to result in death as confirmed through an SR1 form completed by a registered medical professional. This form must state that a person in the household has a terminal condition and serves as the required proof of eligibility for the discount.
The SR1 form is a standard medical document used across the UK to confirm terminal illness for benefit and support purposes. By relying on this form, the council claims it can process claims more efficiently and ensure households receive the discount as quickly as possible.
Who Can Claim the Council Tax Discount?
Households can claim the Council Tax discount introduced by Knowsley Council if someone living in the property has been diagnosed with a terminal illness. The key condition is that the person with the diagnosis must reside in the home, regardless of whether they are named on the Council Tax bill.
This means eligibility is not restricted to the bill payer. The discount can apply where the terminally ill person is:
- A spouse or partner
- A child
- A relative
- Any other member of the household
In practice, this makes the scheme more inclusive, ensuring that support reflects real living arrangements rather than administrative responsibility for the bill.
It also recognises that terminal illness affects the entire household, not just one individual. Families often experience shared financial strain through reduced income, increased care needs, and higher day-to-day costs, all of which can place significant pressure on the household budget.
And Council Tax isn’t cheap either. A study had found that households could need to pay 9% more tax following the recent Council Tax hikes.
To qualify for this Council Tax discount scheme, the following conditions need to be met:
Eligibility Requirement | Details |
|---|---|
Council Tax Liability | The property must be within the Knowsley Council |
Terminal Illness Diagnosis | A terminally ill person must live in the property |
Medical Evidence | A completed SR1 form is required |
Household Connection | The terminally ill person can be a partner, child, relative, or another household member of the person paying the Council Tax |
How Much Council Tax Could You Save?
You could reduce your Council Tax bill by up to 100% under this scheme, depending on your individual circumstances. However, the actual amount you save will vary based on a few factors, like any existing Council Tax reductions you’ve applied for and other tax exemptions your household is eligible for.
In practice, other applicable discounts are usually applied first. The terminal illness discount is then added on top, which reduces the remaining balance and, in some cases, brings the total Council Tax liability down to zero.
Can Someone Else Apply on Your Behalf?
Yes. Applications may be submitted by anyone other than the person directly affected, including a family member, friend, or any trusted individual acting on behalf of the household.
This flexibility is important in cases where the person with a terminal illness is receiving palliative care or is too unwell to manage administrative processes themselves. It ensures that support can still be accessed without adding unnecessary pressure.
To further assist applicants, the council also provides direct support for anyone who needs help completing or submitting the application.
Conclusion
The Council Tax discount introduced by Knowsley Council is a support aimed at easing financial pressure for households affected by terminal illness. Rather than treating tax as a fixed obligation, the scheme adjusts liability in line with what families are actually going through, offering reductions of up to 100% where eligible.
In doing so, it helps reduce one of the more unavoidable household costs at a time when income, stability, and day-to-day normality are often already disrupted, ensuring that legal obligations do not compound an already difficult situation.
FAQs
No. This is a local scheme. In this case, Knowsley Council offers a specific Council Tax discount for households where someone is terminally ill, but other councils may have different policies.
Yes. In Knowsley, households may qualify if a terminally ill person lives in the property.
An SR1 form is a medical document completed by a registered doctor confirming a terminal illness. It is required as evidence for the discount application.
No. Eligibility in Knowsley is based on who lives in the property, not the named Council Tax payer.
Eligible households in Knowsley may receive up to 100% reduction, depending on existing discounts or exemptions already applied.
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