There is no need to ask UKBA, as the information is already made crystal clear in UKBA guidance.
Now can I give my two cents.
I think the whole discussion has been muddled up by the use of wrong terminology or should I say self-made terminology. OP himself has used wrong terminology. Amber's advice is 100 percent correct.
Now the situation is:
OP is living in a house, and paying council tax. If you are a single person, you can get 25% discount. Please note it is a
"DISCOUNT" given by the council. It is not a "council tax benefit" or a "council tax reduction".
" Council tax benefit benefit" is a public fund.
"Council tax discount reduction" is a public fund.
"25% single person discount" is not a public fund.
What Amber has said and what I am saying is mentioned clearly in guidance on UKBA website, and I shall copy the same.
=QUOTE=
Immigration Rules
Paragraph 6 of the Immigration Rules (see related link) defines benefits considered as public funds for the purpose of the Immigration Rules.
The following benefits and forms of support count as public funds:
Attendance allowance
Carers allowance
Child benefit
Child tax credit
Council tax benefit
Council tax reduction
Disability living allowance
Housing and homelessness assistance
Housing benefit
Income based job seekers allowance
Income related ESA
Income support
Personal independence payment
Sever disablement allowance
Social fund payment
State pension credit
Universal Credit
Working tax Credit
Council tax discounts, such as sole occupancy discounts, are not considered public funds for the purposes of immigration rules.
=UNQUOTE=
As clearly mentioned above in guidance, your 25% discount is council tax is not regarded as public funds. You are in clear.
Stop stressing, take a chill pill and sleep tight, you have nothing to worry about.
For your piece of mind, you can read page 7 & 8 of this link.
http://www.ind.homeoffice.gov.uk/siteco ... iew=Binary