Council Tax Reduction scheme for 2025 to 2026

If you are not currently in receipt of Council Tax Reduction and you and your partner, if you have one, are over state pension age and on a low income you can apply for support through this scheme. 

This is a national scheme and the eligibility criteria for it is set by Central Government. If you are eligible, you may receive support up to the full amount of your council tax charges for each day you are eligible.   

Apply for Council Tax Reduction

If you, and your partner if you have one, are of working age, on a low income and receiving Universal Credit you may be eligible under this scheme. 

We will use the information provided to us by the Department for Work and Pensions (DWP) to work out how much reduction you are eligible for. 

This is an income banded scheme so small changes in your income won’t always mean a change in the amount of council tax reduction you receive.

The information below shows the income that will, and will not, be used to work out how much income you have for general living expenses, including council tax. 

Income available for general expenses and used to calculate eligibility

• Net UC payment - Balance of the UC payment after deducting the value of the UC Housing Costs, Disabled Child, Carers, Limited capacity for work and Childcare elements
• Earnings - Net monthly earnings including any overtime or back pay
• Unearned income - Examples include private pensions, state pension, carers allowance (this list is not exhaustive)

Income provided for additional circumstances and not used in the calculation of eligibility

• Disability benefits and other government administered allowances - Examples include PIP/DLA and Attendance Allowance, Child Benefits, War Pensions, Cold weather payments

The scheme has four band categories:

• Single claimants
• Couple claimants
• Families with one child (including lone parent families)
• Families with two or more children (including lone parent families)

You can use the table below to find out the percentage your bill will be reduced by for each day that your income is between the lower and upper threshold of an income band for your category of household. You will be required to pay the remaining percentage of your bill. 

2025/2026

Single claimants

Couple claimants

Families with one child

Families with two or more children

Other adults living with you

If any other adults live with you, and your partner if you have one, the amount of Council Tax Reduction you receive may be reduced. These adults are called non-dependents. If you have a non-dependent living with you, the amount of support you receive will be reduced by £7 for each week that they live with you. This is called a non-dependent deduction. 

We will not make a deduction if you or your partner are:

• Registered blind;
• Receiving Disability Living Allowance (DLA) Care Component at the middle or higher rate;
• Receiving Personal Independent Payment (PIP) Daily Living Component; or
• Receiving Attendance Allowance

We will not make a deduction if the non-dependent living with you is:

• In education or training (student);
• Under 21;
• Receiving Pension Credit;
• Receiving the care component of Disability Living Allowance (DLA) at the middle or highest rate;
• Receiving the daily living component of Personal Independence Payment (PIP);
• Receiving Attendance Allowance (AA);
• Receiving Carers Allowance (CA); or
• Responsible for a child under five 

We will automatically work out whether a deduction should apply using the information on your Universal Credit claim. 

Apply for Council Tax Reduction

You can apply for this scheme until 31 March 2025 if you are of working age,  on a low income and not yet receiving Universal Credit. 

On 1 April 2025, if you are receiving income-related Employment and Support Allowance (ESA), the amount of Council Tax Reduction you receive will continue to be assessed using the eligibility criteria for our ‘Council Tax Reduction Scheme for 2024/2025’ until your ESA claim is migrated to Universal Credit. 

From 1 April 2025, if you do not receive Employment and Support Allowance (ESA), to be eligible for Council Tax Reduction you should have a Universal Credit claim. If you do not have a current Universal Credit, you are self-employed and you claim Council Tax Reduction under this scheme, your claim will be calculated using the Minimum Income Floor (MIF).

Use our Better Off Eligibility Calculator to find out if you could be eligible, and apply, for Universal Credit and any other benefits. The calculator is quick, easy and free to use and the details you provide are anonymous. 

Apply for Council Tax Reduction  

You will be automatically eligible for this scheme for six months from 1 April 2025 if you are receiving Universal Credit; were in receipt of Council Tax Reduction in Salford on 31 March 2025; and the amount of support you would get under the new ‘Working age - income band scheme for households receiving Universal Credit’ is more than 20% less than the support you received under the ‘Council Tax Reduction Scheme for 2024/2025’ scheme. You cannot make an application for this scheme.