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.

From 01 April 2025 there are changes to the Council Tax Reduction (CTR) scheme and you may be asked to pay more than you have in previous years. Some customers who had 100% reduction previously, will now only have 95% reduction.

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 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.