Home Cost of living supportImprovements to the Council Tax Reduction Scheme

Improvements to the Council Tax Reduction Scheme

by Gemma Melling

From 1 April 2026, Knowsley Council’s revised Council Tax Reduction Scheme will go live.

The changes have been introduced following a public consultation and will mean a simpler, fairer and more generous Council Tax Reduction Scheme working-age households.

The changes apply only to working‑age households. Pension-age residents are not affected and will continue under the national scheme and can still receive up to 100% support.

The main changes to be introduced next month include:-

  • The maximum award increases from 80% to 84%
  • A new earnings-based banded scheme
  • A Band C cap on the Council Tax used in calculations
  • Higher non‑dependant deductions (£4 / £10 per week)
  • Fewer revised Council Tax bills
  • More stability for Universal Credit claimants
  • Extra help for low‑income families
  • Support for people moving from benefits into work
  • A minimum weekly award of £3

Cllr Jayne Lonergan, Cabinet Member for Resources, said “Under this new scheme, it will be much easier for residents to understand the level of support they are entitled to, which in turn will help to maximise uptake and support a larger proportion of the Borough’s low-income households.

“Importantly, the changes mean that the scheme will increase uptake and place money in the pockets of residents who need it most.”

Further information, including frequently asked questions, can be found on the council’s website.