Liverpool to introduce full Council Tax exemption for hundreds of households - here's why

Households in Liverpool with a resident who is terminally ill will not have to pay Council Tax under a new policy which is set for approval.

Liverpool will become one of the first local authorities in England to introduce the policy, which will see a 100% discount applied if someone in the property is receiving end-of-life care.

The average Council Tax bill in Liverpool is around £2,000 per year, with the local authority stating it aims to reduce financial stress for terminally ill residents and their families.

The exemption would remain in place for two months after the date of death, offering continued financial relief to bereaved families, to help reduce the risk of sudden financial hardship following the loss of a loved one.

If approved at a Cabinet meeting on Tuesday, December 16, the policy will be introduced from January 1, 2026. It is estimated up to 300 households will be eligible per year.

People who are eligible will need to supply an SR1 form, which is issued by medical professionals to confirm a patient’s terminal illness for benefit claims.

Deputy Council Leader and Cabinet Member for Finance, Resources and Transformation, Cllr Ruth Bennett, said: “Terminal illness places significant emotional and financial strain on individuals and their families.

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“We all know family and friends who have been through the trauma of the impending loss of someone close and the worry that it causes.

“Exempting them from Council Tax will help our residents focus on care, dignity, and quality of life during end-of-life stages when they need to focus their energies on what time they have left with their loved one.

“This is part of our ongoing commitment to help support the most vulnerable in our city.”