Council tax reduction scheme
Council Tax Reduction Scheme up to 31 March 2026
The most a working age claimant could receive in Council Tax Reduction was 85% of the Council Tax liability. We can now pay up to 100% of the council tax liability for those living on the lowest incomes.
If you qualify for backdating prior to 1 April 2026, your claim will be calculated based on the old scheme up to 31 March 2026. If you need an explanation of the old scheme, please let us know.
Council Tax Reduction Scheme from 1 April 2026
From 1 April 2026 the level of your Reduction will be based on a comparison of household size and income for you and your partner.
When we work out your council tax reduction, we will consider a number of incomes and disregard certain incomes.
- Child Benefit, Child maintenance payments, War Pension, and War Disablement benefits. Carers Allowance will be disregarded in full.
- Disability Living Allowance (DLA) and Personal Independence Payment (PIP) will be disregarded in full.
- If you, your partner or your child qualifies for a disability premium you will be awarded an additional £40 disregard from your income.
- If you are in receipt of Universal Credit certain elements will be disregarded. Disabled child element and/or limited capability for work element they will be disregarded in full. An amount of housing element will be disregarded from your net income; however, this amount will vary based on other income you may have.
- A £25 earnings disregard will be applied if you are working.
- If you have a non-dependant living with you, there will be no deduction from your income.
- The Capital threshold is £6000, therefore if you have over £6000 you will not qualify for Council Tax Reduction.
Other changes introduced from 1 April 2026
We will no longer provide an extended payment when someone moves into work.
An extended payment was four weeks of entitlement granted after a claimant started work, based on the out of work income they previously received. Claimants can still claim Council Tax Reduction while working, but it will be calculated on the net income after moving into work (after the standard £25 earnings disregard has been deducted). This is because it is the current income that is used to work out entitlement.