entitledto publishes 2025/26 review of English Council Tax Reduction schemes

entitledto published its annual review of working age Council Tax Reduction (CTR) schemes in England for 2025/26 on 20 May 2025, covering all 296 local authorities in England¹. The review found that around 21% of local authorities, 62 out of 296, made changes to the way they calculate CTR for the year¹.

Within that group, 18 local authorities increased the maximum support available, but the review says this was outweighed by the 28 authorities that made cuts to the level of support offered, described as often quite severe¹. The most common single change was to reduce the maximum CTR, which increases the minimum payment made by the poorest households¹.

A further 20 local authorities moved to an income-banded CTR scheme, taking the total to 126 income-banded schemes, just over 40% of all schemes¹. The review also raises concerns that some income-banded schemes fail to protect people on Universal Credit with no other income¹.

Seventeen local authorities are running two schemes, one for legacy claimants and one for Universal Credit claimants, giving 313 schemes in operation in total¹. entitledto says the end of legacy benefits by March 2026 will mean all local authorities operate one scheme next year¹. The review has been carried out annually since support to pay for Council Tax was localised in 2013¹.

Why it matters for households

Council Tax Reduction is a means-tested discount on the council tax bill for people on a low income, and the scheme is set locally rather than nationally. That means the level of support depends on which council area a household lives in, and the review shows the rules changed for 2025/26 in 62 of England's 296 authorities¹. Where a council reduced its maximum CTR, the practical effect is a higher minimum council tax payment for the poorest households in that area, at the same time as council tax bills were rising¹. The 18 authorities that increased maximum support moved in the opposite direction¹. Households in the 126 income-banded areas have their support calculated by income band rather than through a traditional means test, and the review flags concerns about how some of those schemes treat people whose only income is Universal Credit¹.

What happens next

Legacy benefits are due to end by March 2026, which entitledto says will leave all local authorities operating a single CTR scheme next year, rather than the 17 authorities currently running two¹. The full 2025/26 review is available as a download, and a separate report covers the 126 income-banded schemes¹.