Council tax reduction scheme

Example of a council tax reduction calculation

Mr A and his partner, live in a band E property and they receive their annual demand for 2023/24 for the full charge of £2249.98 (weekly amount of £43.03).

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 £165 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 2023/2024: £2249.98
  • Step 2. Mr A and his partner have unearned income of £165 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 £2249.98 = £1124.99
  • Step 3. The reduction is converted to a weekly amount: £1124.99/366 x 7 = £21.52
  • Step 4. The weekly reduction is then reduced by the non-dependant charge for the daughter: £21.52 - £7.41 = £14.11
  • Step 5. The weekly council tax reduction is converted to a yearly reduction: £14.11/7 x 366 = £737.75
  • Step 6. Mr A's council tax liability for the year after his reduction is calculated: £2249.98- £737.75 = £1512.23