How Much Council Tax Reduction Can You Get in Greenwich?

The 80% Cap and 20% Minimum Payment

Greenwich changed its Council Tax Reduction scheme in April 2025. Working-age residents can now get a maximum of 80% of their council tax bill covered — down from 100% under the old scheme. That means every working-age household pays at least 20% of their bill, regardless of income.

Pension-age residents are unaffected and can still receive up to 100% support under national rules.

The Second Adult Rebate, which used to help working-age households with a low-income second adult, has been abolished. If you previously relied on this, you will need to apply for LCTS under the standard scheme instead.

How Greenwich Calculates Your Award

The calculation follows six stages:

Stage 1 — Start with your bill. Take your gross annual council tax based on your property band. Apply any statutory discounts first (such as the 25% Single Person Discount if you live alone). The remaining figure is your eligible liability.

Stage 2 — Apply the 80% cap. Multiply your eligible weekly liability by 80%. This is the maximum you can receive.

Stage 3 — Work out your applicable amount. This is the government-defined baseline for your household's living costs. It includes personal allowances for adults, couples, children, and any disability or carer premiums.

Stage 4 — Apply the 25% earnings taper. If your net income is at or below your applicable amount, or you receive a passported benefit like income-related ESA, you get the full 80% award. If your income exceeds the applicable amount, Greenwich reduces your support by 25p for every £1 above it.

Stage 5 — Subtract non-dependant deductions. If other adults live with you (not your partner), Greenwich deducts a flat £10 per week per non-dependant from your award. There is an exemption if you or your partner receives PIP daily living, DLA care component, or Attendance Allowance.

Stage 6 — Final award. The result is converted to an annual figure and credited directly to your council tax bill.

A Worked Example

Take a single adult in a Band C property with weekly council tax of £35. The Single Person Discount brings the eligible liability down to £26.25. With an applicable amount of £90 per week and net weekly earnings of £130:

• Maximum award: £26.25 × 80% = £21.00
• Excess income: £130 − £90 = £40
• Taper reduction: £40 × 25% = £10
• Weekly award: £21 − £10 = £11 per week
• You pay: £26.25 − £11 = £15.25 per week

If that same person had income-related ESA instead of earned income, there would be no taper — the full £21 per week would apply, and the resident would pay £5.25 (the 20% minimum).

Capital Limits

Savings matter too. If your total capital (bank accounts, ISAs, stocks, property other than your home) exceeds £16,000, you are automatically disqualified from LCTS regardless of income.

Capital below £6,000 is ignored completely. Between £6,000 and £16,000, Greenwich assumes the capital generates a standard weekly income (called tariff income), which gets added to your assessable income and reduces your award through the taper.

For pension-age applicants, the lower threshold is £10,000 instead of £6,000, and Pension Credit Guarantee recipients have no upper capital limit.

What If Your Circumstances Change

Your award is recalculated whenever your circumstances change — a pay rise, someone moving in or out, a new benefit starting or stopping. You must report changes to Greenwich Council within 21 days.

If the 20% minimum payment is causing real financial hardship, Greenwich runs a dedicated Hardship Fund that can reduce your liability further. You need an active LCTS award (or a pending application) to apply.

Our Greenwich Council Tax Reduction guide includes calculation worksheets for working through your own figures, including the earnings taper and non-dependant deductions, plus the full hardship fund process.

See more England guides →