Council Tax Reduction rates for a couple with two children

Council Tax Reduction rates for a couple with two children

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

Ammar and Nadia

Ammar and Nadia have two children. They live in a property which is in Band D for Council Tax. Ammar works and gets £150 per week net. They receive Universal Credit of £571.59 per week.

Under the banded income scheme, the council will disregard the Housing Element of Universal Credit, which in their case is £365.92 per week:

£571.59 Universal Credit:
£150.00 earnings
- £365.92 Housing Element

£355.67 per week for the purpose of the banded income scheme.

They are in the income band £349.78 - £380.36, so they qualify for a 32% reduction under the banded income scheme. Under the current scheme, they would get a reduction of 18% from the Council Tax.

Ammar and Nadia, the following month

Looking at the same family a month later, Ammar has had a decrease in his pay. He now earns £140, and their Universal Credit has changed to £577.89 per week. Their income under the banded scheme is now:

£577.89 Universal Credit
£140.00 earnings
- £365.92 Housing Element
£351.97 per week

They are still in the income band £349.78 - £380.36, so they still qualify for a 32% reduction under the banded income scheme.

Under the current scheme, they would get a reduction of 22% 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.