Annual survey of English Council Tax Reduction schemes for 2024/25 published

entitledto, which runs benefits calculators, published its annual survey of Council Tax Reduction (CTR) schemes in England on 15 May 2024, covering the 2024/25 financial year. The review examined the schemes of all 296 local authorities in England and found that 41 of them, around 14%, changed how they calculate Council Tax Reduction for 2024/25¹.

The most common change was an increase in support for the poorest households, made by 15 local authorities. Against that, 9 local authorities made changes that cut support, which the report describes as sometimes severe. The second most common change was the introduction of an income-banded scheme, by 14 local authorities. There are now 106 income-banded schemes across the country, and around a third of all CTR schemes are income-banded¹.

The survey also found that, for the first time since support to pay for Council Tax was localised in 2013, offering 100% maximum support is the most common approach among English schemes¹.

The report raises concerns about the failure of some income-banded schemes to protect people on Universal Credit with no other income¹. It does not name the individual local authorities that made changes, and no breakdown by region or by authority has been reported.

Why it matters for households

Council Tax Reduction is a means-tested discount on the council tax bill, and each English local authority designs its own scheme, so entitlement and the size of the reduction depend on where a household lives. The 41 authorities that changed their rules for 2024/25 will calculate awards differently from the previous year, which means some claimants in those areas will see the amount of benefit deducted from their bill rise and others will see it fall. The 15 authorities that increased support for the poorest, and any that moved to 100% maximum support, will reduce or remove the council tax bill for the lowest-income households in those areas. The 9 authorities that cut support will leave affected claimants with more council tax to pay. Households in the 14 authorities that introduced income-banded schemes face a different calculation method, under which support tapers according to banded income rather than the previous formula. Because schemes are set locally, two households with identical income and circumstances can receive different reductions depending on their council area.

What happens next

The 2024/25 schemes are already in force for the financial year that began in April 2024. entitledto has published a full 2024/25 report, and says it can provide a further report detailing the 106 income-banded schemes on request¹. No further changes to English CTR schemes for 2024/25 have been reported.