Council Tax Reduction (Low Income)
Council Tax Reduction (CTR) reduces the amount of Council Tax you are asked to pay. Any CTR you are awarded is shown on your Council Tax bill.
You can receive help if you are on a low income, even if you are working. However, if you have more than £16,000 in savings or investments you will not usually qualify.
The reduction awarded will depend on:
- the amount you are liable to pay
- the needs of your family
- your income,
- your savings and
- anyone else living with you
From 1st April 2023, all people of working age who live in Babergh and Mid Suffolk will be eligible to receive up to 100% reduction in their Council Tax bill. This same reduction has always been available to customers of Pension Age under the Governments Prescribed Scheme. The amount of the reduction applied will depend on the income and capital available to each household.
The 2023/24 scheme introduced Income Bands for customers in receipt of Universal Credit. These Income Bands will allow for some changes in earnings that will not require Council Tax to be recalculated as often as under the previous scheme.
For more details about how the scheme will work for Universal Credit customers, please go to ‘Income Bands and Contribution Rates’ below.
Apply for Council Tax Reduction
If you do not have a reduction showing on your bill and you think you may qualify, you will need to submit an application. You can find out if you qualify for any Housing Benefit/CTR by using our calculator.
Housing Benefit / Council Tax Reduction Calculator
You do not have to use the Housing Benefit and CTR Calculator to make an online claim. However, if you do, the information you enter into it will automatically be saved into your online claim.
You can claim Housing Benefit and/or CTR online right now. If you wish to partially complete and save the form, then return to it at any time, you can.
For more information visit our Make a claim webpage
Any changes in your circumstances must be reported to us.
Council Tax Reduction Scheme details
Details of the CTR Schemes can be downloaded below:
The previous CTR Schemes can be downloaded below:
Income Bands and Contribution Rates for 2025/26 Council Tax Reduction Scheme
| Monthly Earnings | Required Weekly Contribution | |
|---|---|---|
| Monthly earnings less than £314.00 | No contribution | |
| Monthly earnings of £314 to £660.99 | Contribution of £10.85 | |
| Monthly earnings of £661to £1257.99 | Contribution of £21.69 | |
| Monthly earnings of £1258 to £2000.99 | Contribution of £31.38 | |
| Monthly earnings of £2001 to £2570.99 | Contribution of £47.31 | |
| Monthly earnings of £2571 to £2999.99 | Contribution of £61.85 | |
| Monthly earnings of £3000 and above | Full Council Tax payable |
For Mid Suffolk District Council
Non-dependant deductions for 2025/26
Non-dependants are expected to contribute towards the Council Tax. The non-dependant deductions used within the Council Tax Reduction Scheme are the same as the Government uses for the Prescribed scheme. The Government reviews and updates these amounts every year.
| Not in paid work | £5.00 |
| In receipt of Universal Credit on the basis of no earned income | Nil |
| In receipt of Universal Credit with earned income working less than 16 hours week | £5.00 |
| In paid work whose gross weekly income is less than £266 | £5.00 |
| In paid work whose gross weekly income is between £266 and £462.99 | £10.20 |
| In paid work whose gross weekly income is between £463 and £576.99 | £12.80 |
| In paid work whose gross weekly income is £577 or more | £15.35 |
| Receiving Income Support, Jobseekers Allowance (income based) | Nil |
| Receiving Employment and Support Allowance (income-related) | Nil |
| Receiving pension credit | Nil |
What is a non-dependant?
A non-dependant is someone aged 18 years or over who lives as part of the household but is not the partner/spouse. It does not include someone living within the household who has a legally enforceable agreement to pay rent. Most typically non-dependants are adult children or elderly relatives.
If the non-dependants living in the household are married to each other or living together as a couple, we add their incomes together and take just one deduction.
Deductions are not made if the householder or their partner are registered blind, receiving Attendance Allowance or Disability Living Allowance (Care) or Personal.