Council Tax Reduction Savings Limit: Capital Thresholds by Council in 2026/27

There's No Single Savings Limit

Ask "how much can I have in savings and still claim CTR?" and the honest answer is: it depends on your council. Unlike the pension-age scheme, which sets a national £16,000 upper limit, working-age schemes are localised. Each billing authority in England chooses its own capital ceiling. The main thresholds you'll encounter are £6,000, £8,000, £10,000, and £16,000.

If your total liquid capital — savings, investments, second properties, shares — exceeds your council's upper limit, you're disqualified outright. Below it, you may still qualify, though savings above the lower threshold generate a small addition to your assessed income.

Common Capital Limits Across England

Councils that kept the old £16,000 limit from the Council Tax Benefit days are generally more generous. Those that reduced it to £6,000 or £8,000 did so to manage costs after the 10% funding cut in 2013. The limit your council sets is published in its adopted scheme document.

How Tariff Income Works

Capital between the lower threshold and the upper limit may count as "tariff income" in your weekly assessment. For example, Bury, Durham, and Rother use this formula:

£1 per week for every £250 (or part of £250) above the lower threshold.

So if you have £9,000 in savings and your council's lower threshold is £6,000, the excess is £3,000. Divide by £250 = 12 blocks. Tariff income: £12 per week added to your assessed income.

That £12 might push you into a lower reduction band or reduce your award through the taper. The lower threshold and tariff formula vary by council, so check your adopted scheme before using this example.

What Counts as Capital

Councils assess all liquid assets held by you and your partner:

• Bank and building society accounts (current and savings)
• Cash ISAs and investment ISAs
• Premium Bonds
• Shares and unit trusts
• The value of property you own other than your home (though the valuation is the estimated sale price minus any mortgage or secured debt)
• Lump-sum payments you've received (redundancy, inheritance, insurance payouts)

How a council treats your home, personal possessions, a car, life insurance, or money held in trust depends on its scheme rules. Check the adopted scheme before assuming an asset is excluded.

What Doesn't Count

Some schemes disregard particular types of capital, but the rules and any time limits are local. Check your adopted scheme before assuming these are excluded:

• Arrears of benefits you're owed
• Personal injury compensation held in a special account
• Certain lump-sum back-payments of Universal Credit or other benefits
• Business assets if you're self-employed and they're essential to your trade

Some schemes may also disregard property or sale proceeds for a limited period. Check the local rules for any time limits and conditions.

If You're Close to the Limit

If your savings are close to your council's capital ceiling, check the adopted scheme's rules on how assets are valued and treated, including assets you no longer hold. Give the council accurate information about your capital and keep records of significant changes.

If your savings are just below the limit but generating significant tariff income, work through the calculation to see whether the tariff pushes your total assessed income above the eligibility threshold. The Council Tax Reduction guide has a capital assessment worksheet that walks you through this for your specific council's figures.

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