How Does Council Tax Reduction Work in Brent? The 2026/27 Scheme Explained
The Basics: Income Bands, Not Means Testing
Brent overhauled its working-age Council Tax Reduction scheme from April 2025, and the same structure carries into the 2026/27 tax year. The old means-tested system is gone. In its place: a five-band income grid that determines what percentage of your bill the council covers.
Your weekly household income places you in a band. Each band has a fixed reduction percentage. There's no sliding scale within bands — you get the same reduction whether you're at the bottom or the top of your band's income range.
| Band | Weekly Income | Reduction | You Pay |
|---|---|---|---|
| 1 | £0 – £80 | 65% | 35% |
| 2 | £81 – £110 | 50% | 50% |
| 3 | £110.01 – £150 | 30% | 70% |
| 4 | £151 – £250 | 20% | 80% |
| 5 | Over £250 | 0% | 100% |
The maximum reduction any working-age household can receive is 65%. The remaining 35% is a mandatory minimum payment that everyone must contribute, regardless of circumstances.
How Your Income Is Calculated
"Weekly household income" means the combined net earnings of you and your partner. The calculation starts with gross earnings and deducts income tax, National Insurance contributions, and 50% of any personal or occupational pension contributions.
Critical detail: DWP and HMRC benefits are excluded from the working-age income-band calculation, including PIP, DLA, and ESA. A household receiving £600 per month in PIP and £300 per month in part-time earnings would be assessed only on the earnings — potentially placing them in Band 1 rather than Band 4.
For Universal Credit claimants, Brent uses the Real Time Information (RTI) earned-income figures from the DWP. The UC award itself is a DWP benefit and is not counted as income for the band calculation; your earnings still count.
The £6,000 Capital Rule
Before income even matters, there's a capital test. If you and your partner hold £6,000 or more in combined savings, investments, and other capital assets, you're disqualified from the working-age scheme entirely.
Below £6,000, your capital is ignored — there's no tariff income calculation. It's a binary test: under £6,000 and you move to the income assessment; at £6,000 or above and your entitlement is zero.
Your main home doesn't count. Neither does personal injury compensation in trust or approved business assets for active self-employment.
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Non-Dependant Deductions
If other adults live in your household who aren't your partner or dependent children, the council applies flat weekly deductions to your CTR award:
- £8 per week for each non-dependant who is out of work
- £20 per week for each non-dependant who is in work
These deductions are subtracted from your CTR award, not from your income calculation. So if your gross CTR award is £25 per week and you have one working non-dependant, the deduction brings your net award down to £5 per week.
The advantage of Brent's flat-rate system is simplicity — you don't need to verify exactly how much your non-dependant earns. The downside is that even a non-dependant earning minimum wage triggers the full £20 deduction.
Putting It All Together: A Worked Example
Take a single parent in a Band C property (£1,986.91 annual gross liability in 2026/27) receiving Universal Credit with no earned income:
- Gross weekly liability: £1,986.91 ÷ 52 = £38.21
- Single Person Discount (25%): £38.21 × 0.75 = £28.66 net weekly liability
- Income assessment: £0 weekly income → Band 1 → 65% reduction
- CTR award: £28.66 × 0.65 = £18.63 per week
- Remaining bill: £28.66 − £18.63 = £10.03 per week (about £43.46 per month)
That £43.46 monthly is the 35% minimum payment in action. Before April 2025, this household might have paid nothing. Under the current scheme, the 35% floor means roughly £521.56 per year still comes out of pocket.
How It Differs From Other London Boroughs
Brent's 35% minimum is one of the highest in London. Some boroughs still offer up to 100% reduction for the lowest-income working-age households. Others have minimum payments of 15% or 20%. The income bands and capital limits also vary borough by borough.
This matters if you're comparing your situation with friends or family in neighbouring areas. Their rules may be completely different — council tax reduction schemes are set locally by each billing authority.
How to Apply
You can apply through Brent Council's "My Account" online portal or indicate that you want to claim Council Tax Support when making a Universal Credit claim. You'll need identity documents, proof of income, two months of bank statements, and details of any non-dependants in the household.
A Universal Credit claim alone does not automatically award CTR. If you want to claim both, Brent says you can indicate this as part of your Universal Credit claim or apply through My Account.
Your entitlement starts from the Monday after your claim is received. If you're moving into Brent, apply within one month of your liability start date to get the reduction from day one.
For a complete walkthrough of the application process, evidence requirements, and how to check your award is correct, our Brent Council Tax Reduction guide covers every step from gathering documents to appealing a decision.
Free independent advice is available from Citizens Advice Brent on 0808 278 7898 and through Brent Community Hubs across the borough.
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