What does this mean for you?

You may receive a bill for Council Tax for the first time, or the amount you pay towards your Council Tax may increase.

CTR will be limited to a maximum of 85% of your Council Tax liability

  • If you are aged 18-65 and claim CTR, you will be required to pay at least 15% of your Council Tax bill from 1 April 2025.
  • Some people may not have had to pay any Council Tax in previous years, however you will now have to start making payments of at least 15% towards your Council Tax bill.
  • Families with a child under six may still receive up to 100% of their CTR entitlement. However, if your property is in Band C or above, your liability will be capped at the Band B rate, and you may still need to contribute some to your Council Tax bill.

Band B restriction

  • If your property is in Band C or above and you receive CTR, the maximum reduction you can get will be capped to a Band B property.

  • As a result, you may have to pay some (or more) towards your Council Tax.

What happens when my child turns six?

  • If you are receiving CTR and you have a child who turns six within the financial year (1 April 2025 to 31 March 2026), you will be subject to the 85% restriction from the Monday following the date they turn six.
  • You will automatically be notified of this change to your Council Tax Reduction and a new Council Tax Bill will be issued to you confirming what you will need to pay and when.
  • If you have other children in your household under six you will continue to receive the protection until the youngest child has turned six.