Ealing Council Tax Reduction Capital Limit: The £6,000 Savings Rule

The Hard £6,000 Ceiling

Ealing's 2026/27 working-age Council Tax Reduction scheme sets a strict capital limit at £6,000. If the combined savings, investments, and other capital held by you and your partner exceed £6,000, you receive no Council Tax Reduction at all — regardless of how low your weekly income is.

There is no taper or partial reduction around the threshold. At £5,999 you qualify for full assessment under the income bands. At £6,001 you're excluded entirely and owe 100% of your council tax bill.

What Counts as Capital

Ealing aggregates the capital of both the applicant and their partner. The following all count toward the £6,000 ceiling:

• Bank and building society accounts — current accounts, savings accounts, ISAs, fixed-term deposits
• Cash holdings
• Investments — shares, bonds, premium bonds, unit trusts, cryptocurrency
• Property you own other than your main home (a second home or buy-to-let)
• Insurance policy surrender values

Some capital is disregarded:

• Your main home — the property you live in and pay council tax on
• Certain personal injury compensation held in trust or administered by the courts
• Business assets essential for self-employment
• The value of a life insurance policy that hasn't been surrendered

The council uses bank statements from the past two months to verify your position. If you hold accounts across multiple banks, all of them are checked.

The Pension-Age Comparison

If you've reached state pension credit age, the capital ceiling is £16,000 under the national prescribed scheme — nearly three times Ealing's working-age limit. That's a significant gap, and it sometimes catches mixed-age couples off guard. The younger partner's age typically pulls the household onto the working-age scheme, bringing the £6,000 threshold with it.

When Capital Fluctuates

If your capital dips below £6,000, you become eligible and should apply immediately. Because Ealing does not backdate working-age CTR claims, waiting even a week after your savings drop below the threshold costs you that week's reduction permanently.

The reverse is equally sharp. If a lump sum — tax refund, inheritance, sale of an asset — pushes you above £6,000 even temporarily, your CTR stops from that point. If you spend the money quickly and drop back below, you'll need to report the change and the council reassesses.

The key is reporting. The council doesn't monitor your bank balance in real time. If your savings increase and you don't report it, an overpayment builds up. The council will recoup that overpayment by adding it to your council tax bill — and the standard enforcement process (final notices, court summons) applies to the balance.

Planning Around the Threshold

If you have savings close to £6,000, two things to check:

Are you counting everything the council counts? Some people forget secondary bank accounts, premium bonds, or a partner's savings. The assessment looks at the household total, not just the main applicant's accounts.

Is there capital you shouldn't be counting? Personal injury awards held in trust, essential business equipment for self-employment, and certain other categories are disregarded. If the council has included something that should be excluded, that's grounds for a review.

The Ealing Council Tax Reduction guide walks through the full capital calculation, including the disregard categories and how to present your evidence to the council so nothing is miscounted.

See more England guides →