Council tax reduction scheme

Mr A and his partner, live in a band E property and they receive their annual demand for 2026/27 for the full charge of £2613.77 (weekly amount of £50.13).

As well as his partner Mr A lives with his adult daughter. Mr A and his partner have savings of less than £6,000 and their weekly unearned income to be taken into account under the scheme is £190 a week. Mr A’s daughter does not work.

Mr A applies for a council tax reduction and is entitled to a reduction of 50% of his liability.

• Step 1. Mr A's liability for the year 2025/2026: £2613.77
• Step 2. Mr A and his partner have unearned income of £190 per week to be taken into account under the council tax reduction scheme (non-protected category). This entitles them to a 50% reduction as shown in the table. 50% of £2613.77 = £1306.89
• Step 3. The reduction is converted to a weekly amount: £1306.89/365 x 7 = £25.06
• Step 4. The weekly reduction is then reduced by the non-dependant charge for the daughter: £25.06 - £8.35 = £16.71
• Step 5. The weekly council tax reduction is converted to a yearly reduction: £16.71/7 x 365 = £871.31
• Step 6. Mr A's council tax liability for the year after his reduction is calculated: £2613.77- £871.31 = £1742.46