Dorset Council Tax Minimum Payment and Band E Cap Explained

The Minimum Payment Floor

Dorset Council's working-age scheme has six discount bands, and the lowest non-zero discount is Band 5 at 20%. If your income sits above the Band 5 ceiling — £245.01 per week for a single person, £323.01 for a couple — you get nothing. There's no Band 6 partial award.

A Band 5 award covers 20% of eligible liability, leaving 80% before any non-dependant deduction. For homes in Bands F, G, or H, the Band E cap also leaves the charge difference payable, so the amount you owe can exceed 80% of your actual bill. The full 100% relief at Band 1 can reduce eligible liability to zero; unlike some English councils that impose a blanket minimum payment (say, 8.5% or 15% of the bill regardless of income), Dorset's scheme can do so if your income is low enough and no cap or deduction leaves a balance.

The Band E Property Cap

This is the rule that catches people in larger homes. Dorset Council caps the maximum CTR award at the charge equivalent of a Band E property in your parish or town billing area. If your home is in Band F, G, or H, the discount percentage is calculated against the Band E charge — not your actual bill.

The practical effect: you're personally liable for 100% of the difference between your actual band's charge and the Band E charge, on top of whatever the CTR calculation leaves uncovered.

Example. A Band G property in a Dorset parish with Band E charges of £2,500 per year. The actual Band G charge is £3,333. A single person on Band 1 income (100% discount) gets CTR calculated on the Band E figure: £2,500 credit. Their residual bill is £3,333 minus £2,500 = £833 per year, roughly £69 a month. Without the cap, they'd pay nothing.

Why These Rules Matter Together

The band cap and the income thresholds interact. A family with 2 children earning £250 per week falls in Band 2 (80% discount). If they're in a Band D property, they get 80% off the full bill. If they're in a Band G property, they get 80% off the Band E charge, plus the full Band G-to-E gap.

For households caught by the band cap, the Section 13A discretionary hardship fund is the fallback. If the gap between your CTR-adjusted bill and what you can actually afford is causing severe hardship, you can apply for additional relief to cover the residual.

For the complete calculation walkthrough and hardship application guidance, see the Dorset Council Tax Reduction guide.

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