Council Tax Reduction (Low Income)

Council Tax Reduction (CTR) reduces the amount of Council Tax you are asked to pay. Any CTR you are awarded is shown on your Council Tax bill.

You can receive help if you are on a low income, even if you are working. However, if you have more than £16,000 in savings or investments you will not usually qualify.

The reduction awarded will depend on:

• the amount you are liable to pay
• the needs of your family
• your income
• your savings
• anyone else living with you

From 1 April 2023, all people of working age who live in Babergh and Mid Suffolk will be eligible to receive up to 100% reduction in their Council Tax bill. This same reduction has always been available to customers of Pension Age under the Governments Prescribed Scheme. The amount of the reduction applied will depend on the income and capital available to each household.

The 2023/24 scheme introduced Income Bands for customers in receipt of Universal Credit. These Income Bands will allow for some changes in earnings that will not require Council Tax to be recalculated as often as under the previous scheme.

For more details about how the scheme will work for Universal Credit customers, please go to ‘Income Bands and Contribution Rates’ below.

Apply for Council Tax Reduction

If you do not have a reduction showing on your bill and you think you may qualify, you will need to submit an application. You can find out if you qualify for any Housing Benefit/CTR by using our calculator.

Babergh Housing Benefit / Council Tax Reduction Calculator

Mid Suffolk Housing Benefit / Council Tax Reduction Calculator

You do not have to use the Housing Benefit and CTR Calculator to make an online claim. However, if you do, the information you enter into it will automatically be saved into your online claim.

You can claim Housing Benefit and/or CTR online right now. If you wish to partially complete and save the form, then return to it at any time, you can.

Online Claim Form

For more information visit our Make a claim webpage

Any changes in your circumstances must be reported to us.

Council Tax Reduction Scheme details

Details of the CTR Schemes can be downloaded below:

• Babergh CTR Scheme 1/4/26
• Mid Suffolk CTR Scheme 1/4/26

The previous CTR Schemes can be downloaded below:

• Babergh CTR Scheme 1/4/25
• Mid Suffolk CTR Scheme 1/4/25
• Babergh CTR Scheme 1/4/24
• Mid Suffolk CTR Scheme 1/4/24

Income Bands and Contribution Rates for 2026/27 Council Tax Reduction Scheme

Non-dependant deductions for 2026/27

Non-dependants are expected to contribute towards the Council Tax. The non-dependant deductions used within the Council Tax Reduction Scheme are the same as the Government uses for the Prescribed scheme. The Government reviews and updates these amounts every year.

What is a non-dependant?

A non-dependant is someone aged 18 years or over who lives as part of the household but is not the partner/spouse.  It does not include someone living within the household who has a legally enforceable agreement to pay rent. Most typically non-dependants are adult children or elderly relatives.

If the non-dependants living in the household are married to each other or living together as a couple, we add their incomes together and take just one deduction.

Deductions are not made if the householder or their partner are registered blind, receiving Attendance Allowance or Disability Living Allowance (Care) or Personal.

Council Tax Support for residents of Mid Suffolk 2026/27

Mid Suffolk Council are awarding additional assistance in the form of Council Tax Support to residents in receipt of Council Tax Reduction (CTR). This scheme will apply to CTR customers who have a balance of Council Tax to pay and uses discretionary powers from Section 13A 1 (c) of the Local Government Finance Act.

This scheme awards up to £50 to each CTR customer who, after discounts, reliefs and Council Tax Reduction had been applied, still has Council Tax left to pay. Awards are made on the following basis:

• Where a taxpayer, following the application of council tax reduction, has more than £50 Council Tax to pay, the balance is reduced by £50
• Where a taxpayer, following the application of council tax reduction, has less than £50 Council Tax to pay, then their balance is reduced to nil
• Where a taxpayer, has no Council Tax to pay then no Council Tax Support award will be made

CTR customers do not need to make a separate claim for a reduction under this scheme. The Council will automatically assess who is eligible for support and apply Council Tax Support to taxpayer’s accounts and issue a new Council Tax bill.

Awards of Council Tax Support will show on your Council Tax bill as in the example below:

Here is a screenshot of a sample bill showing the same information as you might see it printed: