A simplified Council Tax Reduction (CTR) scheme for working-aged applicants was introduced on 1 April 2017. This is based on an income band system.
If your household’s total income falls within a range of specified bands, you may be entitled to relief of up to 95% of the annual Council Tax charge.
Who is entitled to CTR
The maximum amount of reduction is capped at the band C council tax charge. For 2025-2026 the annual charge for band C is £2,017.53.
The council tax charge will be reduced by 95% (up to the band C cap) if:
- no one is employed in a household and
- a member of the household is also a disabled person
Annual scheme summary Council Tax increases
From 1 April 2019 income bands will increase annually in line with inflation (Consumer Price Index or CPI).
You can view the Council Tax regulation schemes for previous years below:
- Council Tax Reduction Scheme 2025 regulations
- Council Tax Reduction Scheme 2024 regulations
- Council Tax Reduction Scheme 2023 regulations
- Council Tax Reduction Scheme 2022 regulations
- Council Tax Reduction Scheme 2021 regulations
- Council Tax Reduction Scheme 2020 regulations
- Council Tax Reduction Scheme 2019 regulations
Council Tax reduction for pension-age applicants is a national scheme, the rules are set by Parliament.
View The Pension age Council Tax reduction scheme regulations.
Council Tax Reduction for working-age applicants
You’re not entitled to a reduction if all of your and your partner’s assets and savings add up to more than £10,000.
In households where the occupant is a Sutton placed care leaver aged under 25, the charge will be reduced to zero.
In households where none of the liable residents are in work and a member of the household is disabled, or has a limited capacity for work you will receive a reduction of 95% of your charge up to the band C cap.
All other households will pay a percentage of their charge proportionate to their income.
Any household where someone is in work and earns a sufficient amount to afford the charge will pay the full charge.