The Council Tax Reduction (CTR) scheme is the way we help people on low incomes pay their council tax bill. Councils are required to review their schemes each year, and any changes are subject to public consultation. Feedback assists the council in making decisions on any changes to the scheme.
CTR is a vital component of the anti-poverty agenda and helps to alleviate some of the biggest financial pressures, particularly for vulnerable households.
Consultation November 2025
Residents are invited to have their say on the three recommendations proposed by Salford City Council’s BetterOff team to further improve their CTR scheme.
Effective from 1 April 2025, Salford introduced a new income banded CTR scheme to assist households with low incomes in managing their council tax bills. This simpler and more equitable approach to support the lowest income households in the city aligns with a key council priority to tackle poverty and inequality.
The council has reviewed performance of the new CTR scheme to ensure it effectively targets support as intended and to assess if any adjustments are necessary for the 2026/27 financial year. To help more residents in need become better off, three recommendations for changes to the scheme have been identified. Respondents can have their say on these proposals by responding to a short survey.
The survey deadline is Thursday 1 January 2026.
The first proposal is to amend the treatment of Universal Credit Transitional Protection Payments (UCTPP) in scheme administration. This will support claimants such as those who migrated to UC from legacy Employment and Support Allowance (ESA) who receive less support under UC than under ESA as the Severe Disability Premium part of the ESA has stopped. Although they are entitled to temporary UCTPP to prevent an immediate drop in income, many will experience significant income reduction over time as the UCTPP erodes. Therefore, the council proposes ignoring the UCTPP element when assessing them under the new CTR scheme.
The second proposed scheme amendment is to disregard 45% of state or occupational pensions following feedback from the council’s Welfare Rights and Debt Advice service. When a working-age partner in a couple is unemployed due to caregiving responsibilities for a pension-age partner who receives disability benefits, they’re less likely to quality for CTR. Therefore, the council should consider the intersection of low income, disability, and caregiving responsibilities for mixed-age couples. Disregarding 45% of pension income will prevent them from being financially disadvantaged under the scheme. This approach aligns with the earnings disregard applied in Universal Credit (UC) and allows a portion of income, particularly relevant to housing costs, to be excluded from assessment.
The third recommendation is to retain the Council Tax Reduction Transitional Protection Scheme. While it is anticipated that all legacy ESA benefit claims will transition to UC during 2025/2026, a contingency non-UC scheme is necessary in case of delays or if some claimants do not complete the migration. This ensures continued support for individuals on low incomes who don’t receive income-related benefits. By the end of this financial year, the number of working-age, low-income households not yet on UC is expected to be minimal. Once these households are identified, the council’s BetterOff Engage service will assist them in understanding any barriers to claiming and provide support in accessing benefits, skills and work services to help maximise their income.
Complete the survey