Non-Dependant Deductions and the £6,000 Capital Limit in Cheshire West

What Is a Non-Dependant Deduction

A non-dependant is an adult aged 18 or over living in your home who is not your partner, joint tenant, or sub-tenant. The most common examples are adult children still living at home, elderly parents, or other relatives.

The council assumes each non-dependant contributes towards the Council Tax, and deducts a fixed weekly amount from your CTR award — whether or not that person actually pays you anything.

Cheshire West and Chester uses two flat tiers:

• £5 per week: the non-dependant is not working, works fewer than 16 hours per week, or has gross weekly earnings of £266 or less
• £10 per week: the non-dependant works 16 hours or more per week with gross weekly earnings above £266

If you have two non-dependant adults in the household — say, a son earning £280/week and a daughter who is unemployed — your weekly CTR award is reduced by £15 (£10 + £5). On a maximum award of around £23/week for a standard Band B claimant, that deduction wipes out more than half the support.

Why Non-Dependant Deductions Catch People Off Guard

Most claimants do not realise these deductions exist until they receive a decision notice showing an award far lower than expected. The council does not always spell out the deduction clearly on the letter, and the amounts can seem arbitrary if you do not know the tiers.

You are also required to report any changes in your non-dependant's employment status or income. If an adult child gets a job paying over £266/week, the deduction jumps from £5 to £10 — and failing to report that change can result in an overpayment demand.

The £6,000 Capital Limit

Since April 2025, most working-age claimants in Cheshire West and Chester — including protected groups — face a hard capital limit of £6,000. War Pension recipients retain the higher £16,000 limit. For claimants subject to the £6,000 cap, exceeding it means no Council Tax Reduction; there is no taper, so £6,001 is over the limit.

Capital is calculated jointly for couples. Both partners' savings are added together, so two people with £3,500 each are over the limit.

The following are disregarded:

• The value of your main home
• Personal possessions
• Compensation payments held in trust
• Benefit arrears paid to correct an official error (disregarded for 52 weeks)

Before April 2025, protected working-age groups had a £16,000 capital limit; that was reduced to £6,000 except for War Pension recipients.

Pension-age claimants keep the £16,000 national limit. Capital between £10,000 and £16,000 generates a small "tariff income" (£1/week for every £250, or part thereof, above £10,000) instead of disqualifying the claim entirely.

What to Do If You Are Close to the Limit

If you are sitting just above £6,000, it is worth checking whether any of your capital falls into a disregarded category. Compensation held in trust and benefit arrears paid to correct an official error are disregarded for 52 weeks. Getting accurate advice before applying can prevent a wasted claim.

For a detailed breakdown of how capital rules, non-dependant deductions, and the rest of the Cheshire West scheme work together, see the Council Tax Reduction guide.

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