Council Tax Benefit Abolished: What Replaced It in Liverpool

If you're searching for "council tax benefit" in Liverpool, you won't find it — because it doesn't exist any more. Council Tax Benefit was abolished across England in April 2013 and replaced by locally designed Council Tax Reduction schemes. Liverpool's scheme is noticeably different from the old national system.

What Changed in 2013

Under the old Council Tax Benefit, working-age claimants could receive up to 100% reduction on their bill through a nationally standardised means test. Every council applied the same rules, and the scheme was funded entirely by central government.

When it was abolished, responsibility for working-age support moved to individual councils, which design their own local schemes. Pension-age claimants were protected by nationally prescribed rules that still allow up to 100% reduction.

How Liverpool's Current Scheme Is Different

Liverpool now runs an income-banded scheme for working-age residents. The key differences from the old system:

Maximum support is 84%, not 100%. Even if you have zero earned income, you always pay at least 16% of your eligible council tax. Under the old system, a claimant on passported benefits typically paid nothing.

Income bands instead of a taper. The old system used a continuous 20% taper — for every extra pound of income above your applicable amount, your benefit dropped by 20p. Liverpool's system uses five fixed bands based on net monthly earnings. You're in one band or another, and small income changes within a band don't affect your reduction.

Band B property cap. Your reduction is calculated against the Band B charge (£2,079.46 for 2026/27), regardless of your actual property band. If you're in Band D, you pay the full difference between Band D and Band B yourself, on top of the 16% minimum.

Household extensions. Band thresholds widen by £50 per week for a partner and £25 per week per child. The old system used applicable amounts and premiums — different mechanism, similar effect of accounting for household size.

Capital limit of £16,000. This hasn't changed — savings above £16,000 still disqualify you entirely. But under the banded system, savings below £16,000 don't generate "tariff income" the way they did under the old means test. If you're under £16,000, your savings don't affect your income band at all.

What Stayed the Same

Pension-age claimants in Liverpool are still assessed under nationally prescribed rules. Maximum reduction is still up to 100%, capital limits and tariff income still apply the traditional way, and Pension Credit Guarantee recipients still get full passported support.

Statutory discounts (Single Person, SMI, Disabled Band Reduction) still apply before Council Tax Reduction is calculated, just as they did before 2013.

Liverpool uses the Citizen Access Benefits portal. A new Universal Credit claim can trigger a DWP notification that Liverpool accepts as an intention to claim Council Tax Reduction. Check for an amended bill within four weeks; if it has not arrived, submit a manual claim through the portal.

If You Haven't Claimed Since Before 2013

If you were on Council Tax Benefit before 2013 and your old claim lapsed, you need to make a fresh application under the current scheme. Old claims didn't automatically convert into the new system — though most people who were receiving CTB at the changeover were migrated across. If you've moved, changed circumstances, or simply not been in the system for years, you'll need a new claim.

Apply through liverpool.gov.uk/benefits/council-tax-support/. The process is straightforward if you have your income and identity documents ready.

Our Liverpool Council Tax Reduction guide walks through the current scheme's income bands and calculations step by step, designed for residents who haven't navigated the new system before.

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