Introduction
During 2024, we consulted Council Tax payers and those getting support with their bills through our Council Tax Reduction (CTR) scheme. We asked them about changes to reduce the levels of support available in response to the Council’s financial emergency.
In December 2024, the Council decided to make the following changes to the Council Tax Reduction scheme from 1 April 2025:
- Reduce the discounts on the income bands from 100%, 75%, 40% and 25% to 100%, 50%, 25% and 10% respectively
- Increase the income values by 1.7%
- Introduce non-dependant deductions of £10 a week for each non-dependant or non-dependant couple living in the home
- Limit the maximum amount of Council Tax Reduction for those living in a property in Council Tax bands E, F, G and H to the amount they would pay if they were in a Band D property
- Reduce the period we can backdate claims for Council Tax Reduction from 12 months to 3 months
Changes to the discount levels and income bands
The table below details the new discount levels and income bands from 1 April 2025.
| Band | Discount currently (%) | Discount from 1 April 2025 (%) | Single person – weekly amount | Single person with one child – weekly amount | Single person with two children – weekly amount | Couple with no children – weekly amount | Couple with one child – weekly amount | Couple with two children – weekly amount |
|---|---|---|---|---|---|---|---|---|
| Band1 | Discount currently (%)100 | Discount from 1 April 2025 (%)100 | Single person – weekly amount£0 – £104 | Single person with one child – weekly amount£0 – £174 | Single person with two children – weekly amount£0 – £239 | Couple with no children – weekly amount£0 – £153 | Couple with one child – weekly amount£0 – £218 | Couple with two children – weekly amount£0 – £283 |
| Band2 | Discount currently (%)75 | Discount from 1 April 2025 (%)50 | Single person – weekly amount£104.01 – £169 | Single person with one child – weekly amount£174.01 – £239 | Single person with two children – weekly amount£239.01 – £316 | Couple with no children – weekly amount£153.01 – £229 | Couple with one child – weekly amount£218.01 – £283 | Couple with two children – weekly amount£283.01 – £360 |
| Band3 | Discount currently (%)40 | Discount from 1 April 2025 (%)25 | Single person – weekly amount£169.01 – £207 | Single person with one child – weekly amount£239.01 -£278 | Single person with two children – weekly amount£316.01 – £402 | Couple with no children – weekly amount£229.01 – £283 | Couple with one child – weekly amount£283.01 – £321 | Couple with two children – weekly amount£360.01 – £446 |
| Band4 | Discount currently (%)25 | Discount from 1 April 2025 (%)10 | Single person – weekly amount£207.01 – £256 | Single person with one child – weekly amount£278.01 – £316 | Single person with two children – weekly amount£402.01 – £522 | Couple with no children – weekly amount£283.01 – £337 | Couple with one child – weekly amount£321.01 – £360 | Couple with two children – weekly amount£446.01 – £565 |
| Band | Discount currently (%)0 | Discount from 1 April 2025 (%)0 | Single person – weekly amountOver £256 | Single person with one child – weekly amountOver £316 | Single person with two children – weekly amountOver £522 | Couple with no children – weekly amountOver £337 | Couple with one child – weekly amountOver £360 | Couple with two children – weekly amountOver £565 |
When working out your weekly income we will continue to:
- Ignore the first £25 a week of any earnings
- Ignore the first £30 a week of any unearned income where a member of the family is disabled
- Not include:
- the housing element of Universal Credit
- Child Maintenance
- Child Benefit
- Carers Allowance
- Disability benefits such as disability living allowance and personal independence payments
We cannot award Council Tax Reduction if your weekly income is more than the maximum amount set for band 4, or you have more than £6000 in capital or savings.
How the changes affect you
Discount levels
If you are in Bands 2, 3 or 4, your discount will reduce from 1 April 2025.
Example 1
Miss Jones’ weekly income means she currently gets a 40% discount. From 1 April 2025, she will only receive a 25% discount.
Non-dependant deductions
A non-dependant is usually an adult son, daughter or other relative or friend who lives with you on a non-commercial basis.
We will reduce the amount of Council Tax Reduction you get by £10 a week for each non-dependant or non-dependant couple living with you. We will assume any non-dependants living with you will make a contribution to household bills, such as Council Tax. You must tell us about non-dependants living with you that we don’t know about.
Example 2
A couple live in their home with two of their grown-up children, both over the age of 18 years. Their income means they get a 75% discount which for them is £24 a week off their Council Tax bill. We will reduce this by £20 (2 x £10 a week), so they will only get £4 a week (£24 minus £20) in Council Tax Reduction. Their grown-up children, the non-dependants, should make up the difference in their weekly contribution to the household bills.
Example 3
A single person lives in their home with their brother who is over the age of 18. Their income means they get a 25% discount which for them is £8 a week. We will reduce this by £10 a week because their brother lives with them. Unfortunately, this means they no longer get any Council Tax Reduction.
Maximum CTR limited to Council Tax band D
If you get Council Tax Reduction and you live in a property in Council Tax band E, F, G or H, we will work out your discount as if you lived in a Band D property.
Example 4
A couple live in a band E property where their Council Tax bill is equal to £50 a week. Their weekly income means they get a 100% discount. If their home was in a Band D, their bill would be equal to £42 a week. We would award a 100% discount on a maximum of £42 a week. This means they would have to pay the difference of £8 a week (£50 minus £42).
Extra help available if the changes significantly affect you
If you currently receive Council Tax Reduction, you will have to pay more Council Tax unless:
- you currently receive the 100% discount; and
- Your income stays the same; and
- No non-dependants live with you; or
- The home you live in is in Council Tax band A, B, C or D
The Council runs an ‘Exceptional Hardship’ scheme which can award additional help towards your Council Tax bill, even if you no longer qualify for Council Tax Reduction. Visit Claim Exceptional Hardship page for further information.
You could also get help through the Somerset Household Support Fund.
Other things you can do include:
- Check you are getting all the benefits and support you can get with entitled.to.
- If you pay your Council Tax with a normal 10-month payment plan, ask us to pay over 12 months to help with your finances
- Check you are getting all the Council Tax discounts you can get