Cheshire East Council Tax Support Scheme 2026/27 — What Changed and What's Coming

The Legal Framework

Cheshire East's working-age Council Tax Support scheme operates under Section 13A(1)(a) and Schedule 1A of the Local Government Finance Act 1992, as amended by the Local Government Finance Act 2012. Each billing authority in England designs its own working-age scheme — pension-age residents stay under mandatory national regulations regardless of where they live.

The council formally adopted the 2026/27 scheme document (referenced as cheshire-east-s13a-2026-2027.pdf) covering the financial year from 1 April 2026 to 31 March 2027. This is separate from the council's discretionary hardship fund, which operates under Section 13A(1)(c) and carries its own application process.

Current Scheme Rules at a Glance

The core parameters for working-age claimants in 2026/27:

• Maximum award: 80% of net council tax liability (after primary discounts like Single Person Discount are applied)
• Minimum payment: 20% of your council tax bill, unless you receive Income Support, income-based JSA, or income-related ESA — those legacy benefits qualify for up to 100%
• Capital limit: £6,000 hard cutoff — savings at or above that figure means zero award
• Band D cap: Properties in Bands E through H are calculated as if they were Band D
• Minimum award threshold: Entitlements below £2.00 per week round down to zero
• Non-dependant deduction: £11.16 per week per qualifying adult in the household

Universal Credit claimants are assessed through income bands, not passported automatically. The council receives data from DWP electronically, but residents must still submit a separate Council Tax Support application directly with Cheshire East.

The Transitional Protection Fix (September 2025)

In September 2025, Cheshire East updated its benefits software to exclude Universal Credit Transitional Protection from countable income. Before that fix, the TP element was being counted as income, pushing claimants into higher income bands and reducing their awards.

The correction was applied retrospectively. Affected households received revised council tax bills and backdated credits. If you were on Universal Credit with Transitional Protection before September 2025 and haven't had your council tax account adjusted, contact the benefits team at 0300 123 5013 or [email protected].

What's Proposed for 2027/28

Cheshire East Council opened a public consultation in October 2026 on proposed structural changes to the working-age scheme, closing Sunday 10 January 2027. The council is targeting £2.1 million per year in reduced expenditure. Roughly 10,800 working-age households would be affected.

The headline numbers from the consultation document:

• Average support reduction of approximately £3.78 per week (around £197 per year) per affected household
• Possible reduction of the maximum award from 80% to 70%
• Possible capping of awards at Band B rates for certain household types

No final decisions have been made. After the consultation closes, a final report goes to Cabinet and Full Council before March 2027. The adopted scheme for 2027/28 would take effect from 1 April 2027.

Responses can be submitted by email to [email protected] or by post to Freepost RUHE-UXJJ-ULYY.

How This Affects Current Claimants

If you're already receiving Council Tax Support under the 2026/27 scheme, your award continues until 31 March 2027 (subject to changes in your circumstances). You don't need to reapply annually — the council carries your claim forward and reassesses it against whatever scheme is adopted for 2027/28.

Changes to your income, savings, household composition, or benefit status still need to be reported within 21 days. The current scheme rules apply until the end of March 2027 regardless of what the consultation produces.

For residents who haven't applied yet, the current 2026/27 rules remain in force. The Cheshire East Council Tax Reduction Guide walks through the full application process, evidence requirements, and award calculation under the current scheme.

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