Working age bands
The Council Tax Reduction (CTR) banding scheme changes for working age households are as follows:
From Tuesday 1 April 2025, the Council Tax Reduction (CTR) banding scheme for working age households will be as follows:
Based on weekly income | |||||||||
|---|---|---|---|---|---|---|---|---|---|
Household type: | Single | Couples | Family with 1 child | Family with 2 or more children | |||||
CTR banding | Lower limit | Upper limit | Lower limit | Upper limit | Lower limit | Upper limit | Lower limit | Upper limit | CTRS reduction |
Band 2 | £0 | £180 | £0 | £250 | £0 | £330 | £0 | £500 | 80% |
Band 3 | £0 | £90 | £0 | £130 | £0 | £150 | £0 | £260 | 75% |
Band 4 | £90.01 | £120 | £130.01 | £170 | £150.01 | £210 | £260.01 | £340 | 55% |
Band 5 | £120.01 | £150 | £170.01 | £210 | £210.01 | £270 | £340.01 | £420 | 35% |
Band 6 | £150.01 | £180 | £210.01 | £250 | £270.01 | £330 | £420.01 | £500 | 15% |
Please note: If the income level exceeds the upper limit, the entitlement will be 0.
Band 2
Where an applicant, their partner or any children in the household are in receipt of:
- Disability Living Allowance
- Personal Independence Payments
- limited capability for work element or disabled child element of Universal Credit and where the net income (excluding the above income) is less than the upper level in band 2
they will receive an award of 80% of their council tax liability.
An applicant, or their partner, in receipt of employment and support allowance with the support component, or registered blind and have a net income of less than the upper level in band 2 will receive an award of a reduction of 80% of their council tax liability where the net income is less than the upper level in band 2.
Bands 3 to 6
Applicants whose total net income is less than the levels in band 3, will receive a reduction of 75% against their liability for council tax.
This will also apply to those applicants receiving Universal Credit without earnings or unearned income (also known as passported customers). Where customers are not in receipt of this benefit and their income is above the levels specified in band 3, CTR shall be awarded at the appropriate level (band 4, 5 and 6).
Applicants who have a total net income above the levels shown in the grid for their household composition will receive no reduction.
Note: Passported customers who fall in to band 2 will not be subject to the upper income level and will simply receive either 80% of their council tax respectively.
Capital limit
The capital limit is now £6,000, if you have more than £6,000 you will not be eligible for council tax reduction (capital is calculated in accordance with the CTR scheme rules).
Non-dependant deductions
Where an applicant and their partner (if they have one) has other adults living with them, such as adult sons, daughters, elderly relatives or another person over the age of 18, their CTR may be reduced. Any charge made is called a non-dependant deduction.
A single standard deduction of £10 per week for each non-dependant in the household, regardless of their income is applied.
However, where the applicant or their partner (if they have one) are receiving the Disability Living Allowance care component or the Personal Independence Daily Living Payment (or otherwise not subject to a deduction) they will be exempt from any non-dependant deduction being made from their council tax reduction.
A minimum award
When any entitlement is calculated as less than £3 per week, no council tax reduction will be awarded.
Council tax reduction cap
The amount of council tax liability that can be used in the calculation of council tax reduction is now capped at band D. If you live in a property with a council tax band of E or above, your council tax reduction will be calculated based on a band D charge.
Absence from home whilst abroad
The number of weeks that someone can be absent from home whilst abroad and continue to receive council tax reduction has been updated to 4 weeks.
This change aligns with the Housing Benefit and Pensioner Council Tax Regulations.
If you are absent from home and abroad for more than 4 weeks, your council tax reduction claim will be closed. It may end immediately if you intend to be absent abroad for more than 4 weeks.
An earnings disregard
A standard single earnings disregard of £25 per week is applied to any applicant who is working. If their earnings are less than £25 per week, then we will disregard the amount of earnings.
How we assess Universal Credit income
The housing cost element, childcare cost element, disabled child element, limited capability for work element, and carer element are disregarded from the award of Universal Credit. Any deductions and advanced payments are added back to the Universal Credit income. A person in receipt of Universal Credit without earnings or any other income will automatically fall in band 3 (unless they meet the criteria for band 2).
Disregarded income (income that is not included in the calculation)
Where an applicant (or their partner if they have one) receives Carer's Allowance for looking after a person who is ill or disabled, the Carer's Allowance payment they receive is disregarded in the assessment of their income.
The support component of Employment and Support Allowance is also disregarded in the assessment of income.
Additional support for care leavers
Care leavers will not be required to pay any council tax until they turn 21-years-old.
To calculate your council tax reduction under the new scheme use our online benefits calculator.