Non-Dependant Deductions and Council Tax Reduction in Wales
When an adult child moves back home or a relative stays long-term, many people in Wales are blindsided by a non-dependant deduction slicing into their Council Tax Reduction. The council subtracts a fixed weekly amount from your CTR award for every qualifying non-dependant in your household — whether or not that person actually contributes to the bills.
Who Counts as a Non-Dependant?
A non-dependant is an adult (18 or over) who lives in your home and is not:
- Your partner
- A joint tenant or joint owner
- A lodger paying you rent on a commercial basis
- A child you are responsible for under benefit rules
In practice, the most common non-dependant is an adult child who has finished education and is living at home. It also includes elderly parents, siblings, or friends who share your home without a formal tenancy.
2026/27 Deduction Rates
The deduction depends on the non-dependant's gross weekly income from employment:
| Non-Dependant's Situation | Weekly Deduction |
|---|---|
| In full-time work, gross income £485 or more | £20.05 |
| In full-time work, gross income £279 to £484.99 | £13.50 |
| In full-time work, gross income under £279 | £6.70 |
| Not in work, or on passported benefits (Income Support, income-based JSA, income-related ESA, UC with no earnings) | £6.70 |
These are flat amounts subtracted from your maximum CTR — they are not a percentage. If you have two non-dependants, both deductions apply. A household with two working adult children could lose over £40/week from their CTR award.
When No Deduction Applies
The council must not make a non-dependant deduction if the applicant (you or your partner) receives any of these:
- PIP Daily Living component
- DLA Care component (middle or highest rate)
- Attendance Allowance
- You or your partner are registered blind
This is an important protection. If you receive PIP Daily Living, it does not matter how much your adult child earns — no deduction is made. The exemption is based on your circumstances, not the non-dependant's.
Additionally, no deduction applies for a non-dependant who:
- Is under 18
- Is a full-time student during their period of study
- Has been in hospital for more than 52 weeks
- Is a prisoner
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The Confusion with Single Person Discount
Non-dependant deductions and the 25% single person discount are separate systems. Having a non-dependant move in may also remove your single person discount (because there are now two adults in the property) — a double hit that catches people off guard.
The council recalculates your council tax bill (removing the 25% discount) and your CTR award (applying the non-dependant deduction) at the same time. Your bill goes up and your reduction goes down, which can mean hundreds of pounds more to pay per year.
What You Can Do
If a non-dependant deduction has been applied to your award:
- Check the income band — the council bases the deduction on the non-dependant's gross weekly earnings. If they have provided incorrect figures (or the council has estimated), ask for a recalculation with accurate payslip evidence.
- Check for exemptions — if you receive PIP Daily Living, DLA Care, or Attendance Allowance, no deduction should be made. If it has been, request a formal review.
- Report changes — if the non-dependant moves out, loses their job, or their income drops into a lower band, tell the council. Your CTR should be recalculated from the date of the change.
The Council Tax Reduction in Wales guide covers non-dependant deductions in detail, including a change-of-circumstances report template you can use to notify the council when someone moves in or out of your household.
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