Council Tax Reduction eligibility 2025/2026

Council Tax Reduction is to help people who are on a low income or an out of work benefit to pay part or all their Council Tax. The amount of reduction you get depends on your status and how much Council Tax you pay.

You have to apply to us for Council Tax Reduction, you do not receive it automatically.

Who qualifies for a reduction

To qualify for Council Tax Reduction, you must:  

• Be responsible for the Council Tax payment on your address
• Have less than £16,000 in savings if you are working age 

You can claim Council Tax Reduction whether you are working, unemployed, disabled, single, married etc. However, there may be some exceptions to this, for example:  

• You have come to live in the UK from abroad and have restrictions on your status 
• You are a full-time student 
• You live in residential care or nursing home
• You are pensioner age and have savings over £16,000

New schemes

The government requires us to protect the claiming process for pension age claimants so there are two Council Tax Reduction schemes in place: 

1. The prescribed scheme for pensioners 
2. Our local Council Tax Reduction scheme for working age claimants

Prescribed scheme for pensioners

The pensionable age scheme is means tested, which means that a standard weekly income amount is allowed, depending on the number of people in the household and relevant personal circumstances (for example disability). Any income a household receives above that amount reduces the entitlement to Council Tax Reduction.

The eligible Council Tax reduction is 100% of the amount an applicant is liable to pay. 

You can check your entitlement to pension age Council Tax Reduction before making a claim by using a benefit calculator.

Local scheme 2025/2026

We have changed our Council Tax scheme for 2025. View details of last year's scheme.

Under the 2025/2026 Richmond scheme, working age households will be designated to one of the five eligibility levels based on specific criteria, utilising status and a maximum income figure. 

The maximum Working Age Council Tax reduction is capped at Band E for Working Age Schemes 2 to 5. If your property is Band F, G or H then the maximum reduction you can receive is the Band E amount and you will have to pay the difference. View Council Tax Bands and charges.

The status bands are as follows: 

• Working Age Scheme 1
• Working Age Scheme 2
• Working Age Scheme 3
• Working Age Scheme 4
• Working Age Scheme 5

Working Age Scheme 1

Eligible Council Tax Reduction is 100% of the amount an applicant is liable to pay (not subject to the Band E cap).

The applicant and/or any partner are not in receipt of any earned income but are receiving any level or component of:

• Disability Living allowance
• Personal Independence Payment
• Attendance Payment  
• Carer’s Allowance  

Or the household is: 

• Within the ‘support group’ for Employment Support Allowance 
• Entitled to the Universal Credit Limited Capability for work and related activity  
• Receives a Disability Banding reduction from Council Tax 
• Receives either a war Disablement Pension or War widows Pension (either claimant or partner) 

Working Age Scheme 2

Eligible Council Tax Reduction is 100%.

The applicant and any partner have dependent children in the household, and are receiving either: 

• Income Support
• Income-based Jobseeker’s Allowance
• Income-related Employment and Support Allowance
• Universal Credit (and the applicant and any partner are not in work)
• Contribution-based Employment and Support Allowance (and the applicant and any partner are not in work)

Working Age Scheme 3

Eligible Council Tax Reduction is 100%.

The applicant and any partner have no dependent children in the household and are receiving either: 

• Income support
• Income-based Jobseeker’s Allowance
• Income-related Employment and Support Allowance
• Universal Credit (and the applicant and any partner are not in work)
• Contribution-based Employment and Support Allowance (and the applicant and any partner are not in work)

Working Age Scheme 4

The applicant and any partner have no dependent children and are in receipt of earned (including self-employed) income.

Eligible Council Tax Reduction depends on weekly net earnings:

• £0 to £125 - 80% reduction
• £125.01 to £225 - 65% reduction
• £225.01 to £325 - 50% reduction
• £325.01 to £475 - 35% reduction

Or, the applicant and any partner are not in work and are not receiving either:

• Income Support
• Income-based Jobseekers Allowance, or
• Income-related Employment and Support Allowance
• Contribution-based related Employment and Support Allowance, or
• Universal Credit
• Contribution based Jobseekers Allowance

And our view is that the claimant or partner would be entitled to an income above were a claim to be made.

Working Age Scheme 5

The applicant and any partner have dependent children and are in receipt of earned (including self-employed) income.

Eligible Council Tax Reduction depends on weekly net earnings:

• £0 to £125 - 85% reduction
• £125.01 to £225 - 70% reduction
• £225.01 to £325 - 60% reduction
• £325.01 to £475 - 40% reduction

Or, the applicant and any partner are not in work and are not receiving either:

• Income Support
• Income-based Jobseekers Allowance, or
• Income-related Employment and Support Allowance
• Contribution-based related Employment and Support Allowance, or
• Universal Credit
• Contribution based Jobseekers Allowance

Transitional protection

Transitional protection is being offered to households placed in Working Age 4 and Working Age 5 bands whose level of Council Tax support has reduced under the new Working Age 2025/2026 scheme.

Eligible households will be contacted after April 2025 with details of the transitional protection awarded. 

Make a claim

if you believe you quality for Council Tax Reduction, please apply.

Make a claim