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Council Tax Reduction Scheme

Council Tax Reduction (Council Tax Support) – From 1 April 2021

The scheme provides help for residents on low incomes by reducing the amount of Council Tax payable.

Pension Age households will continue to be assessed using the National Scheme.

Introduction of an Income Banded Scheme for Working Age households.

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%.

The table below shows the weekly earnings and percentage reduction in the amount of Council Tax payable according to household size.

Household compositionNo Children -
1-2 Children -
3+ Children -
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 77.81 Less than 95.29 Less than 108.59 65%
Band 3 77.71 – 155.61 95.29 – 190.82 108.59 – 217.42 50%
Band 4155.62 – 233.43 190.83 – 286.36 217.43 – 326.26 25%
Band 5233.44 - 311.23 286.37 – 381.390 326.27 – 435.09 10%

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.

If you have any questions, please call 01892 526121 or email

To view the full details of the Council Tax Reduction Scheme please read our Council Tax Reduction Scheme document.