Council Tax Reduction Scheme 26/27 Consultation - Case Studies

Current Council Tax Reduction Scheme

We are looking to amend our Council Tax Reduction scheme from April 2026. Below are some case studies to illustrate how certain households, will be affected by each of the proposals. We have outlined what the household’s current actual income is; how much of that income is included in the calculation for the current scheme, for proposal 1 and for proposal 2; and which discount bracket that now places that household in.

The current Council Tax Reduction (CTR) Scheme disregards the housing element of Universal Credit as well as disability and carer incomes:

Carers Allowance
Personal Independence Payments
Disability Living Allowance
Attendance Allowance
Child Benefit

This will continue with all proposed scheme changes. If you want to know more details about how our current scheme operates, please visit our dedicated claiming Council Tax Reduction web page.

+ Current scheme income grids

Working Age Scheme

Working Age Scheme income grid
Bands	Band 1 (80% discount)	Band 2 (65% discount)	Band 3 (50% discount)	Band 4 (35% discount)	Band 5 (20% discount)
Single	£0.00 -£122.10	£122.11 -£183.15	£183.16 -£244.20	£244.21 –£305.25	£305.26 –£366.30
Couple	£0.00 –£162.10	£162.11 –£223.15	£223.16 –£284.20	£284.21 –£345.25	£345.26 –£406.30
Lone parent with 1 child	£0.00 –£177.10	£177.11 –£238.15	£238.16 –£299.20	£299.21 –£360.25	£360.26 –£421.30
Couple with 1 child	£0.00 –£217.10	£217.11 –£278.15	£278.16 –£339.20	£339.21 –£400.25	£400.26 –£461.30
Lone parent with 2 or more children	£0.00 –£232.10	£232.11 –£293.15	£293.16 –£354.20	£354.21 –£415.25	£415.26 –£476.30
Couple with 2 or more children	£0.00 –£272.10	£272.11 –£333.15	£333.16 –£394.20	£394.21 –£455.25	£455.26 –£516.30

Vulnerable Scheme

Vulnerable Scheme income grid
Bands	Band 1 (90% discount)	Band 2 (75% discount)	Band 3 (60% discount)	Band 4 (45% discount)	Band 5 (30% discount)
Disabled/carer claimants	£0.00 –£272.10	£272.11 –£333.15	£333.16 –£394.20	£394.21 –£455.25	£455.26 –£516.30

+ Proposed income grids for consultation

Proposal 1 is to align the Working Age Scheme and the Vulnerable Scheme but add further incomes to be disregarded, such as UC Limited Capability for Work (LCW) Element, UC Transitional Protection (TP), UC Disabled Child Element (DCE) and UC Carer Element (CaE) (with a maximum level of support of 90% or 100%).

Income Grid:

Proposal 1 income grid
Bands	Band 1 (90%/100% discount)	Band 2 (75%/85% discount)	Band 3 (60%/70% discount)	Band 4 (45%/55% discount)	Band 5 (30%/40% discount)
Single	£0.00 -£122.10	£122.11 -£183.15	£183.16 -£244.20	£244.21 –£305.25	£305.26 –£366.30
Couple	£0.00 –£162.10	£162.11 –£223.15	£223.16 –£284.20	£284.21 –£345.25	£345.26 –£406.30
Lone parent with 1 child	£0.00 –£177.10	£177.11 –£238.15	£238.16 –£299.20	£299.21 –£360.25	£360.26 –£421.30
Couple with 1 child	£0.00 –£217.10	£217.11 –£278.15	£278.16 –£339.20	£339.21 –£400.25	£400.26 –£461.30
Lone parent with 2 or more children	£0.00 –£232.10	£232.11 –£293.15	£293.16 –£354.20	£354.21 –£415.25	£415.26 –£476.30
Couple with 2 or more children	£0.00 –£272.10	£272.11 –£333.15	£333.16 –£394.20	£394.21 –£455.25	£455.26 –£516.30

Proposal 2 is to align the Working Age Scheme and the Vulnerable Scheme into the same income grid based on the claimant and partner's circumstances only. Disregard some UC elements, such as UC Limited Capability for Work (LCW) Element, UC Transitional Protection (TP), UC Disabled Child Element (DCE) and UC Carer Element (CAE). In addition, we would also disregard children and all income and allowances in respect of the children. (with a maximum level of support of 90% or 100%).

Income Grid:

Proposal 2 income grid
Bands	Band 1 (90%/100% discount)	Band 2 (75%/85% discount)	Band 3 (60%/70% discount)	Band 4 (45%/55% discount)	Band 5 (30%/40% discount)
Single	£0.00 -£122.10	£122.11 -£183.15	£183.16 -£244.20	£244.21 –£305.25	£305.26 –£366.30
Couple	£0.00 –£162.10	£162.11 –£223.15	£223.16 –£284.20	£284.21 –£345.25	£345.26 –£406.30

+ Case study 1 - Disabled single person, no children

Case Study 1 - Income
Description	Hours	Weekly Gross Amount	Weekly Net Amount
Earned Income	25	£203.74	£203.74
Universal Credit		£277.97	£218.08
Total			£421.82

Breakdown of UC
UC Award Components		UC Payment Calculation
Standard Allowance	£92.34	CL Unearned	£0.00
Housing Element	£87.95	PT Unearned	£0.00
Child Element	£0.00	Net Earnings Deducted after Disregard and Taper	£59.89
Disabled Child Element	£0.00	Benefit cap reduction	£0.00
Chilldcare Element	£0.00
Carer Element	£0.00
Limited Capability for Work	£97.68
Transitional Protection	£0.00
Total	£277.97	Weekly UC Payment	£218.08

Income used in calculation
Current Scheme		Proposal 1		Proposal 2
Description	Weekly Amount	Description	Weekly Amount	Description	Weekly Amount
Earned Income	£203.74	Earned Income	£203.74	Earned Income	£203.74
Universal Credit Housing Element Deducted	£130.13	Universal Credit HE & LCW Deducted	£32.45	Universal Credit HE & LCW Deducted	£32.45
TOTAL	£333.87	Total	£236.19	Total	£236.19
Minus Disregards	£268.87	Minus Disregards	£211.19	Minus Disregards	£211.19
Income is below £272.10 therefore entitled to 90% CTR.		Income is between £183.16 - £244.20 therefore entitled to 60% CTR (or 70% if the 100% scheme is chosen).		Income is between £183.16 - £244.20 therefore entitled to 60% CTR (or 70% if the 100% scheme is chosen).

+ Case study 2- Disabled couple, no children

Case Study 2 - Income
Description	Hours	Weekly Gross Amount	Weekly Net Amount
Earned Income	12	£205.14	£202.38
Universal Credit		£333.86	£274.71
PIP		£73.90	£73.90
Total			£550.99

Breakdown of UC
UC Award Components		UC Payment Calculation
Standard Allowance	£144.95	CL Unearned	£0.00
Housing Element	£91.23	PT Unearned	£0.00
Child Element	£0.00	Net Earnings Deducted after Disregard and Taper	£59.15
Disabled Child Element	£0.00	Benefit cap reduction	£0.00
Chilldcare Element	£0.00
Carer Element	£0.00
Limited Capability for Work	£97.68
Transitional Protection	£0.00
Total	£333.86	Weekly UC Payment	£274.71

Income used in calculation
Current Scheme		Proposal 1		Proposal 2
Description	Weekly Amount	Description	Weekly Amount	Description	Weekly Amount
Earned Income	£202.38	Earned Income	£202.38	Earned Income	£202.38
Universal Credit Housing Element Deducted	£183.48	Universal Credit HE & LCW Deducted	£85.80	Universal Credit HE & LCW Deducted	£85.80
TOTAL	£385.86	Total	£288.18	Total	£288.18
Minus Disregards	£320.86	Minus Disregards	£263.18	Minus Disregards	£263.18
Income Between £272.11 - £333.15 therefore entitled to 75% CTR		Income Between £223.16 - £284.20 therefore entitled to 60% CTR (or 70% if the 100% scheme is chosen)		Income Between £223.16 - £284.20 therefore entitled to 60% CTR (or 70% if the 100% scheme is chosen)

+ Case study 3 - Disabled single person, 3 children

Case Study 3 - Income
Description	Hours	Weekly Gross Amount	Weekly Net Amount
Earned Income	3	£25.61	£25.61
Universal Credit		£760.69	£677.39
DLA		£91.54	£91.54
Carers Allowance		£83.30	£83.30
Child Benefit		£60.55	£60.55
Total			938.39

Breakdown of UC
UC Award Components		UC Payment Calculation
Standard Allowance	£92.34	CL Unearned	£83.30
Housing Element	£226.94	PT Unearned	£0.00
Child Element	£145.80	Net Earnings Deducted after Disregard and Taper	£0.00
Disabled Child Element	£114.43	Benefit cap reduction	£0.00
Childcare Element	£0.00
Carer Element	£46.54
Limited Capability for Work	£0.00
Transitional Protection	£134.64
Total	£760.69	Weekly UC Payment	£677.39

Income used in calculation
Current Scheme		Proposal 1		Proposal 2
Description	Weekly Amount	Description	Weekly Amount	Description	Weekly Amount
Earned Income	£25.61	Earned Income	£25.61	Earned Income	£25.61
Universal Credit Housing Element Deducted	£450.45	Universal Credit HE & LCW Deducted	£154.84	Universal Credit HE & LCW Deducted	£9.04
TOTAL	£476.06	Total	£180.45	Total	£34.65
Minus Disregards	£411.06	Minus Disregards	£155.45	Minus Disregards	£9.65
Income Between £394.21 - £455.25 therefore entitled to 45% Discount		Income Below £232.10 therefore entitled to 90% Discount (or 100% if 100% scheme is chosen)		Income Below £122.10 therefore entitled to 90% Discount (or 100% if 100% scheme is chosen)

+ Case study 4 - Couple with 1 child

Case Study 4 - Income
Description	Hours	Weekly Gross Amount	Weekly Net Amount
Earned Income	40	£239.50	£239.50
Universal Credit		£486.90	£407.34
Child Benefit		£26.05	£26.05
Total			£672.89

Breakdown of UC
UC Award Components		UC Payment Calculation
Standard Allowance	£144.95	CL Unearned	£0.00
Housing Element	£196.15	PT Unearned	£0.00
Child Element	£145.80	Net Earnings Deducted after Disregard and Taper	£79.56
Disabled Child Element	£0.00	Benefit cap reduction	£0.00
Childcare Element	£0.00
Carer Element	£0.00
Limited Capability for Work	£0.00
Transitional Protection	£0.00
Total	£486.90	Weekly UC Payment	£407.34

Income used in calculation
Current Scheme		Proposal 1		Proposal 2
Description	Weekly Amount	Description	Weekly Amount	Description	Weekly Amount
Earned Income	£239.50	Earned Income	£239.50	Earned Income	£239.50
Universal Credit Housing Element Deducted	£211.19	Universal Credit HE Deducted	£211.19	Universal Credit UC Components Disregarded	£65.39
TOTAL	£450.69	Total	£450.69	Total	£304.89
Minus Disregards	£425.69	Minus Disregards	£425.69	Minus Disregards	£279.89
Income Between £400.26 - £461.30 therefore entitled to 20% Discount		Income Between £400.26 - £461.30 therefore entitled to 30% Discount (Or 40% if 100% scheme is chosen)		Income Between £223.16 - £284.20 therefore entitled to 60% Discount (or 70% if 100% Scheme is chosen)

+ Case study 5 - Single person with 5 children

Case Study 5 - Income
Description	Hours	Weekly Gross Amount	Weekly Net Amount
Earned Income	40	£277.66	£256.53
Universal Credit		£564.91	£475.99
Child Benefit		£77.80	£77.80
Total			£810.32

Breakdown of UC
UC Award Components		UC Payment Calculation
Standard Allowance	£92.34	CL Unearned	£0.00
Housing Element	£204.22	PT Unearned	£0.00
Child Element	£213.37	Net Earnings Deducted after Disregard and Taper	£88.92
Disabled Child Element	£0.00	Benefit cap reduction	£0.00
Childcare Element	£0.00
Carer Element	£0.00
Limited Capability for Work	£0.00
Transitional Protection	£54.98
Total	£564.91	Weekly UC Payment	£475.99

Income used in calculation
Current Scheme		Proposal 1		Proposal 2
Description	Weekly Amount	Description	Weekly Amount	Description	Weekly Amount
Earned Income	£256.53	Earned Income	£256.53	Earned Income	£256.53
Universal Credit Housing Element Deducted	£271.77	Universal Credit HE & TP Deducted	£216.79	Universal Credit UC Components Deducted	£3.42
TOTAL	£528.30	Total	£473.32	Total	£259.95
Minus Disregards	£503.30	Minus Disregards	£448.32	Minus Disregards	£234.95
Income above £476.30 so not entitled		Income Between £415.26 and £476.30 therefore entitled to 30% Discount (Or 40% if 100% scheme is chosen)		Income Between £183.16 and £244.20 therefore entitled to 60% Discount (or 70% if 100% Scheme is chosen)

+ Summary of case studies

Summary of case studies
Case Study	Total Income	Current Scheme Income Used	Current Scheme % Discount	Proposal 1 Income Used	Proposal 1 % Discount	Proposal 2 Income Used	Proposal 2 % Discount
Disabled Single Person, no Children	£421.82	£268.87	90%	£211.19	60%/70%	£211.19	60%/70%
Disabled Couple, no Children	£550.99	£320.86	75%	£263.18	60%/70%	£263.18	60%/70%
Disabled Single, 3 Children	£938.39	£411.06	45%	£155.45	90%/100%	£9.65	90%/100%
Couple with 1 Child	£672.89	£425.69	20%	£425.69	30%/40%	£279.89	60%/70%
Single with 4 children	£810.32	£503.30	0%	£448.32	30%/40%	£234.95	60%/70%