Council Tax Reduction Scheme Consultation
Introduction
Residents are invited to have their say on proposed changes to our Council Tax Reduction (CTR) scheme for 2026/27. We believe the proposals outlined below will make the scheme fairer and continue to support our key priority to tackle poverty and inequality.
The survey deadline is Thursday 1 January 2026.
Please make sure you read the information below before completing the survey.
The Council Tax Reduction (CTR) scheme helps people on low incomes to pay their council tax. The level of reduction is based on the income of the household. We want to make changes to the scheme to:
- make the system work better for those receiving Universal Credit (UC)
- ensure that those households on the lowest incomes are protected and continue to receive the maximum reduction;
Currently the maximum reduction for pension age households is 100% and for eligible working age households it is 88% of their bill. The current cost of the scheme in Salford for 2025/26 was £30.5 million. The proposed changes laid out in the consultation will be cost neutral when considering the current cost of the scheme for 2025-2026, including the transitional protection scheme.
The changes will only apply to working age applicants. Pension age applicants will see no change because they are part of a national scheme which is set by the government.
We are seeking your views on the proposed changes which would come into effect from 1 April 2026. It should take around 10 minutes to read and feedback on this consultation.
The existing income-banded scheme introduced in April 2025 has operated effectively, simplifying the process and aligning with Universal Credit. However, following a review of how the policy may potentially impact on different households, we have identified areas where further refinements can improve fairness and reduce administrative burden.
- Ignore UC Transitional Protection Payments (UCTPP) in CTR assessments: Some claimants migrating to UC receive UCTPP to offset loss of legacy income benefits, for example Severe Disability Premium. Including UCTPP reduces their support unfairly. From April 2026, these payments will be disregarded.
- Disregard 45% of State or Occupational Pensions for a couple receiving Universal Credit: Mixed-age couples and those receiving occupational pensions often face reduced support because they are not eligible for the work allowance and their pension payments are not subject to a disregard taper. Disregarding 45% of pension income will better reflect disposable income and support vulnerable households.
- Retain the CTR Transitional Protection Scheme: This will continue to provide a safety net for households experiencing significant loss or delays in UC migration.
- Continues to give the highest level of support to those households who are on the lowest incomes or are out of work.
- Positive impact for disabled residents, mixed-age couples, and socio-economic fairness.
- Changes are cost-neutral when combined with CTR Transitional Protection.