Council Tax Reduction scheme explained
The Council Tax Reduction (CTR) Scheme for working age households is an income banded scheme.
In summary:
- The discount is based on the total weekly income of the applicant, and their partner, if they have one;
- The number of dependent children is limited to two in the calculation;
- Deductions are not made for non-dependents;
- Carers Allowance, the support component of Employment and Support Allowance and the housing element of Universal Credit are disregarded in the calculation of income;
- There is a standard earnings disregard;
- A further deduction from unearned income is allowed where a member of the household is disabled and in receipt of certain disability benefits;
- Changes to Council Tax Reduction take effect from the day they occur;
- Council Tax Reduction may be backdated to the beginning of the financial year;
Following a 4 week CTR consultation (09 December 2024 - 05 January 2025) the 2025/26 CTR Scheme has been enhanced and now provides the additional support:
- a 52-week disregard for Bereavement Support Payments and Widowed Parents Allowance; and
- a 100% disregard for:
- Post Office Compensation Scheme payments;
- Infected Blood Scheme payments;
- Vaccine Damage payments;
- Payments made due to the Grenfell Tower inquiry; and
- Carer Support Payments (paid by the Scottish Government).
- Childcare element of Universal Credit
The Council Tax Reduction Scheme for pension age households is determined by Central Government. To find out more about Council Tax Reduction for pensioners, please contact the Benefits & Welfare section.
Council Tax payers who experience financial hardship can apply online for assistance from the Exceptional Hardship Fund.