Introduction
Council Tax Reduction is a means-tested benefit. You can apply for Council Tax Reduction if you fall into any of the following criteria:
- You own your home (either outright or you have a mortgage);
- You rent your home;
- You are the person whose name is on the council tax bill. If you are jointly responsible for the council tax we may be able to help with your share of the bill;
And:
- You are on a low income;
- You are 18 years of age and older.
How much is CTR
A new CTR Scheme was introduced on 1st April 2026. This will increase year on year in line with the national minimum wage.
The new scheme disregards the following income:
- All Universal Credit elements apart from Standard Allowance (Housing Element, Limited Capability for Work, Carers Element, Disabled Child Element, Transitional Protection, Child Element and Child Care Element)
- Carers Allowance
- PIP/DLA/AA
- Child Benefit
- If you are earning, the first £25.00 of earned income is also disregarded
Once all relevant incomes have been disregarded, the percentage of Council Tax Reduction you receive is based on the remaining income and if you are single or a couple, see table below.
| Bands | Band 1 (90%) | Band 2 (75%) | Band 3 (60%) | Band 4 (45%) | Band 5 (30%) |
|---|---|---|---|---|---|
| Single Claimant | £0.00 – £127.10 | £127.11 – £190.65 | £190.66 – £254.20 | £254.21 – £317.75 | £317.76 – £381.30 |
| Couple | £0.00 – £167.10 | £167.11 – £230.65 | £230.66 – £294.20 | £294.21 – £357.75 | £357.76 – £421.30 |
Deductions
There may be deductions made for any non-dependent that you have living with you. A non-dependent is someone over the age of 20 (or over 18 and not in full time education) who lives with you on a non-commercial basis.
For example adult sons or daughters, elderly parents, other family members or friends.
Council Tax Reduction will normally be reduced if a non-dependent lives in the household. There is an expectation that non-dependents will make a contribution towards their living costs, including rent, council tax and food, etc.
The amount they pay towards the above is not taken into account. Standard weekly deductions are made from the claimant’s Council Tax Reduction entitlement instead. This is shown in the table below:
| Non-dependent deductions | Council Tax Reduction deductions April 2026 – pension age claimants | Council Tax Reduction deductions April 2026 – working age claimants |
|---|---|---|
| Aged 25 or over and on IS/JSA (IB), ESA (IR) main phase | Nil | Nil |
| Aged under 25 and on IS/JSA (IB), ESA (IR) assessment phase | Nil | Nil |
| Aged under 25 and on ESA (IR) main phase | Nil | Nil |
| In receipt of Universal Credit without any earned income | Nil | Nil |
| In receipt of Job Seekers Allowance (contribution based) | £5.20 | £10.00 |
| In receipt of Pension Credit (guarantee or savings credit) | Nil | Nil |
| Aged 18 or over and works 16+ hours per week and has: | ||
| Gross income less than £279.00 | £5.20 | £10.00 |
| Gross income not less than £279.00 but less than £485.00 | £10.60 | £10.00 |
| Gross income not less than £485.00 but less than £605.00 | £13.30 | £10.00 |
| Gross income not less than £605.00 | £15.95 | £10.00 |
| Any other non-dependant (even nil income) | £5.20 | £10.00 |
Last Updated on June 10, 2026 by Ashford Advice