Council Tax Reduction rates for a couple with one child

An example of how the Council Tax Reduction Scheme could work.

Latif and Soha

Latif and Soha have one child. They rent privately: the property they rent is in Council Tax Band F. Latif works full time and earns £405 a week after tax and national insurance. They receive Universal Credit of £356.23 a week.

Under the banded income scheme, the council will disregard the Housing Element of Universal Credit, which in their case is £365.92. However, as the Universal Credit is only £356.23 per week, we can only disregard this amount.

£356.23 Universal Credit
£405.00 Earnings
- £356.23 Housing Element (part)

£405.00 per week for the purpose of the banded income scheme.

This is in the income band £380.77 - £424.95, so they qualify for a 15% reduction. Under the current scheme they would not qualify for a reduction.

Latif and Soha, the following month

Looking at the same family a month later, Latif has had a decrease in his pay. He now earns £300, and their Universal Credit has changed to £422.38 per week. 

Their income under the banded scheme is now:

£422.38 Universal Credit
£300.00 Earnings
- £365.92 Housing Element

£356.46 per week for the purpose of the banded income scheme.

They are now in the income band £336.58 - £380.76, so they now qualify for a 32% reduction under the banded income scheme. Under the current scheme, they would get a reduction of 12% from the Council Tax.

Council Tax Bands 

To find out your percentage of Council Tax Reduction, select your Council Tax Band from the list below.

Band A

Weekly Income	% Council Tax Reduction
Up to £204 pw	100%
£204.01 - £224.39	83%
£224.40 - £244.78	66%
£244.79 - £265.17	49%
£265.18 - £285.56	32%
£285.57 - £305.95	15%

Band B

Weekly Income	% Council Tax Reduction
Up to £204 pw	100%
£204.01 - £227.79	83%
£227.80 - £251.58	66%
£251.59 - £275.37	49%
£275.38 - £299.16	32%
£299.17 - £322.95	15%

Band C

Weekly Income	% Council Tax Reduction
Up to £204 pw	100%
£204.01 - £231.19	83%
£231.20 - £258.38	66%
£258.39 - £285.57	49%
£285.58 - £312.76	32%
£312.77 - £339.95	15%

Band D

Weekly Income	% Council Tax Reduction
Up to £204 pw	100%
£204.01 - £234.59	83%
£234.60 - £265.18	66%
£265.19 - £295.77	49%
£295.78 - £326.36	32%
£326.37- £356.95	15%

Band E

Weekly Income	% Council Tax Reduction
Up to £204 pw	100%
£204.01 - £241.39	83%
£241.40 - £278.78	66%
£278.79 - £316.17	49%
£316.18 - £353.56	32%
£353.57 - £390.95	15%

Band F

Weekly Income	% Council Tax Reduction
Up to £204 pw	100%
£204.01 - £248.19	83%
£248.20 - £292.38	66%
£292.39 - £336.57	49%
£336.58 - £380.76	32%
£380.77 - £424.95	15%

  

Band G

Weekly Income	% Council Tax Reduction
Up to £204 pw	100%
£204.01 - £254.98	83%
£254.99 - £305.96	66%
£305.97 - £356.94	49%
£356.95 - £407.92	32%
£407.93 - £458.90	15%

Band H

Weekly Income	% Council Tax Reduction
Up to £204 pw	100%
£204.01 - £265.18	83%
£265.19 - £326.36	66%
£326.37 - £387.54	49%
£387.55 - £448.72	32%
£448.73 - £509.90	15%