Millions of UK households could be missing out on council tax discounts that could save them more than £1,500 a year on average.

Councils across the country run Council Tax Support schemes, sometimes called Council Tax Reduction, which allows you to take money off of your bill if you meet the eligibility criteria.

If you are on low income or claiming benefits, you could be eligible for the support, though the criteria can vary depending on your local authority.

New analysis by Policy in Practice found that more than 2.2 million people were missing out on Council Tax Support.

Glasgow Times: Your bill could be reduced by up to 100%.Your bill could be reduced by up to 100%. (Image: Getty/stocknshares)

They explained: “Since 2013, the localisation of Council Tax Support has led to one of the most fragmented parts of the social security system.

"Prior to reforms Council Tax Benefit claims, along with Housing Benefit, could be made at the same time as applying for national benefits such as Jobseeker’s Allowance.

"Now a separate claim is required for working age claimants, adding layers of administrative complexity for both applicants and local councils.

"Alongside increased fragmentation and administrative complexity, the localisation of Council Tax Support for working age claimants has led to more than 350 independent schemes with generosity levels varying from 50% to 100% of Council Tax liabilities.

"Policy in Practice has helped over 100 local authorities to model Council Tax Support scheme changes, and we see the variation in local conditions and preferences.

"Where appropriate, we advocate for systems that rely on Universal Credit data to streamline the assessment process, and keep administration costs low.

"The postcode lottery of support means that both eligibility and take up levels vary from local authority to local authority. However, with little to no available data available to measure take up rate at the local level, we applied the same take up rate nationally, 63% for working age households and 75% for pensioners."

You can find your local authority here.

Government guidance on Council Tax Support says: “You could be eligible if you’re on a low income or claim benefits. Your bill could be reduced by up to 100%.

“You can apply if you own your home, rent, are unemployed or working.

“What you get depends on:

  • where you live - each council runs its own scheme
  • your circumstances (for example income, number of children, benefits, residency status)
  • your household income - this includes savings, pensions and your partner’s income
  • if your children live with you
  • if other adults live with you”