Millions of UK households could be missing out on council tax discounts that could save them £1,000 a year on average.

Councils across the country run Council Tax Support schemes, sometimes called Council Tax Reduction, which allows you to take money 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 Council Tax Support was the local initiative with the lowest uptake, meaning 2.7million people are missing out on help.

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

They explained: “Council Tax Support is the most underclaimed, with 2.7 million people missing out on £2.8 billion of support.

“Although fewer households are eligible for Council Tax Support nationally than Universal Credit, the number of households not claiming is higher because the take up rate is only 62%.”

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”