Council Tax reduction scheme
Council Tax reduction is financial help towards paying Council Tax for people of working age.
You can apply for Council Tax reduction alongside other benefits, such as Universal Credit. You may also receive it if you are working but on a low income.
A new Council Tax reduction scheme began on 1 April 2025. This replaces Council Tax support for people of working age. Existing claimants have moved to the new scheme from this date. Claimants do not need to do anything to transfer their claim.
Council Tax reduction uses a simple income bands table. This means applicants can work out the level of support they might receive.
Council Tax reduction does not apply to pension age claimants, who can continue to claim Council Tax support.
Before starting a claim for Council Tax reduction, please ensure you have the following information to hand:
- your Council Tax account number
- your National Insurance number (and your partner's, if applicable)
- details of your household earnings (if applicable)
If you already receive Council Tax reduction, you can tell us about changes using our change in circumstance form.
FAQs about Council Tax reduction
Why have you made changes to the scheme?
There are a number of benefits to the new scheme and application process:
- an online application form - it will be easier and quicker to apply
- simpler to understand - households can work out their estimated level of support by looking at a simple income bands table
- stable instalments - Council Tax instalments will be more stable throughout the year to help budgeting
- less time-consuming to administer - the scheme will be less time-consuming to administer and the council hopes it may be able to make cost savings as a result
What are the 'bands'?
Which band you fall into will depend on your circumstances and income. If you are working, the earnings bands vary depending on your household. There are also bands for those who aren’t currently working.
If you (and any partner) are not working:
| All households - no earnings (applicable to both members of a couple) | Potential reduction (%) |
|---|---|
| All of the following apply: LCWRA, no earnings, higher rate DLA care/enhanced rate PIP daily living | 100 |
| No earnings | 60 |
LCWRA means limited capability for work related activity, as assessed by the Department for Work and Pensions.
If you (or any partner) are working:
| Household type | Weekly net earnings | Potential reduction (%) |
|---|---|---|
| Single person | Less than £60 | 40 |
| Between £60 and £99.99 | 20 | |
| Lone parent with 1 child | Less than £120 | 40 |
| Between £120 and £159.99 | 20 | |
| Lone parent with more than 1 child | Less than £180 | 40 |
| Between £180 and £219.99 | 20 | |
| Couple | Less than £110 | 40 |
| Between £110 and £149.99 | 20 | |
| Couple with 1 child | Less than £170 | 40 |
| Between £170 and £209.99 | 20 | |
| Couple with more than 1 child | Less than £230 | 40 |
| Between £230 and £269.99 | 20 |
Net earnings are calculated as gross earnings less tax, national insurance and 50% of pension contributions. An additional disregard of £50 per week applies for couples and £20 per week for child 1 and 2.
I am an existing Council Tax support claimant. How did you calculate my entitlement from April 2025?
Existing working age Council Tax support claims have moved to Council Tax reduction.
We used the income and household information on your claim to award Council Tax reduction.
How do I know my award of Council Tax reduction is correct?
You can check your award by completing our online change of circumstances form.
The form will tell you the estimated discount that applies to your circumstances. Once submitted, we can check that we have the correct award on your Council Tax account.
Will I get a letter explaining the calculation?
No, we will no longer be issuing these. When a new online application is completed, the calculation will be explained. A new Council Tax bill will be sent once the reduction is applied.
I've had a change in circumstances. How do I let you know?
You can complete our online change of circumstances form.
The form will calculate whether you are entitled to Council Tax reduction. It will then submit this to the council for us to amend your discount, if necessary.
If your partner is moving in and you were the only adult resident before, you should also complete our Apply for or cancel a single person discount form.
Why is my friend/neighbour getting more Council Tax reduction than me?
We cannot discuss someone else’s award with you. Their circumstances or household may be different. You will need to speak to your friend/neighbour to establish the differences.
I am new to the area, how do I claim Council Tax reduction?
Please register for Council Tax using our online Tell us you’re moving into Rutland form. Once you receive your Council Tax bill you can complete our online application form for Council Tax reduction. You can select the date you want the reduction to apply from and provide a reason for choosing this date.
Can I have a postal form because I am not very good on the internet?
We do not have a paper form for claiming Council Tax reduction. You will need to ask a friend, neighbour or support worker to assist you. If you have no one to help, please contact Citizens Advice Rutland on 01572 723 494.