Council Tax Reduction rates for a couple with one child

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 £354.51 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 £354.51 per week, we can only disregard this amount.

£354.51 Universal Credit
£405.00 Earnings
- £354.51 Housing Element (part)

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

This is in the income band £368 - £410, 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 £420.84 per week. 

Their income under the banded scheme is now:

£420.84 Universal Credit
£300.00 Earnings
- £365.92 Housing Element

£354.92 per week for the purpose of the banded income scheme.

They are now in the income band £327 - £368, 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 £202 pw100%
£202 - £221 83%
£221 - £24066%
£240 - £26049%
£260 - £27932%
£279 - £29815%

Band B

Weekly Income% Council Tax Reduction
Up to £202 pw100%
£202 - £22483%
£224 - £247 66%
£247 - £26949%
£269 - £29232%
£292 - £31415%

Band C

Weekly Income% Council Tax Reduction
Up to £202 pw100%
£202 - £228 83%
£228 - £25366%
£253 - £27949%
£279 - £30432%
£304 - £33015%

Band D

Weekly Income% Council Tax Reduction
Up to £202 pw 100%
£202 - £23183%
£231 - £26066%
£260 - £28949%
£289 - £31732%
£317 - £34615%

Band E

Weekly Income% Council Tax Reduction
Up to £202 pw100%
£202 - £23783%
£237 - £272 66%
£272 - £30849%
£308 - £34332%
£343 - £37815%

Band F

Weekly Income% Council Tax Reduction
Up to £202 pw100%
£202 - £244 83%
£244 - £285 66%
£285 - £32749%
£327 - £36832%
£368 - £41015%

Band G  

Weekly Income% Council Tax Reduction
Up to £202 pw 100%
£202 - £25083%
£250 - £29866%
£298 - £34649%
£346 - £39432%
£394 - £44215%

Band H  

Weekly Income% Council Tax Reduction
Up to £202 pw100%
£202 - £26083%
£260 - £31766%
£317 - £37549%
£375 - £43232%
£432 - £49015%