Council Tax Reduction Scheme
Council Tax Reduction (Council Tax Support) – From 1 April 2026
Overview
- The scheme helps residents on low incomes by reducing the amount of Council Tax they need to pay.
- Pension Age households continue to be assessed under the National Scheme, while Working Age households are assessed using an Income Banded Scheme.
How the scheme works
- The scheme is made up of five income bands with a maximum reduction of 80%.
- Income is defined as employment earnings only and does not take into account any benefits received.
- If someone is not working and is in receipt of maximum Universal Credit, Job Seekers Allowance, Employment & Support Allowance or Income Support, they will receive the highest reduction of 80%.
Income bands and reductions
The table below shows the weekly earnings and percentage reduction in the amount of Council Tax payable according to household size.
| Household composition | No Children - Income | 1-2 Children - Income | 3+ Children - Income | Reduction in Council Tax |
|---|---|---|---|---|
| Band 1 | UC and other state benefits only | UC and other state benefits only | UC and other state benefits only | 80% |
| Band 2 | Less than £82.14 | Less than £100.60 | Less than £114.63 | 65% |
| Band 3 | £82.14 - £164.27 | £100.60 - £201.44 | £114.63 - £229.52 | 50% |
| Band 4 | £164.28 - £246.42 | £201.45 - £302.30 | £229.53 - £344.41 | 25% |
| Band 5 | £246.43 - £328.55 | £302.31 - £403.15 | £344.42 - £459.30 | 10% |
Additional Rules
- A £5 per week deduction will be made from the weekly Council Tax liability where there is a non-dependent living in the household who is on out of work benefits. Where there is a working non-dependant in the household, a £10 per week deduction will be made. A non-dependant is an adult (over 18) living in the property who is not a partner, spouse, lodger or joint tenant.
- Anyone who has capital (savings) of over £10,000 will not be eligible.
Help and further information
If you have any questions, please contact us.