Hillingdon Council Tax Reduction Income Bands Explained (2026/27)

How Hillingdon's Income Bands Work

Hillingdon doesn't use the old taper system where your Council Tax Reduction gradually shrinks as income rises. Instead, the 2026/27 working-age scheme sorts every household into one of five income bands, each with a fixed reduction percentage. Cross a threshold by even a pound and your award drops to the next band down.

Here's the complete grid for 2026/27:

Earn above the Band 6 ceiling and you receive nothing.

Band 2 is for households where the applicant, their partner or a resident child receives a qualifying benefit — PIP, DLA, the LCW or LCWRA element, or the Disabled Child element of Universal Credit, the ESA Support Component, or registered-blind status. Everyone else starts at Band 3 and works down.

The £25 Earnings Disregard

Before the council maps your income against the grid, it subtracts a flat £25 per week earnings disregard from earned income where that disregard applies. It is one deduction per claim, regardless of whether one or both partners work; Hillingdon does not apply it to the earnings of an applicant receiving Universal Credit.

So if you earn £130 net per week, your assessable income is £105 — not £130. That difference can push you into a more generous band.

Unearned income is considered under the scheme's rules, but not every benefit is counted in full. Personal Independence Payment and Disability Living Allowance are disregarded, and specified Universal Credit elements are deducted before the band check.

The Band D Cap

Whatever property band you actually live in, Hillingdon calculates your CTR as if your property were Band D at most. The 2026/27 Band D charge is £2,045.46 per year (£39.34 per week).

If you live in a Band F property (£2,954.55/year), your CTR is still calculated against £2,045.46. You pay the full difference between your actual band charge and Band D out of your own pocket, plus whatever percentage your income band doesn't cover.

For properties in Bands A through D, the cap makes no difference — your actual charge is at or below Band D already.

The £3 Minimum Rule

If the calculation produces a weekly CTR award below £3, Hillingdon rounds it down to zero. You get nothing. This catches households whose income sits just below the Band 6 ceiling, or where non-dependant deductions (£12/week each) erode the award below the threshold.

Worked Examples

Single worker in a Band B flat

Net weekly wage: £130. Capital: £1,200. No non-dependants.

• Earnings disregard: £130 − £25 = £105 assessable
• Band B with Single Person Discount: £1,590.91 × 0.75 = £1,193.18/year (£22.94/week)
• £105 falls in Band 4 for a single person (£90.01–£120): 55% reduction
• Weekly CTR: 55% × £22.94 = £12.62
• Above £3 minimum — award valid
• Annual saving: £658

Family with two children on passported UC

Band D property, couple with two children, UC with no earnings, capital £500.

• Passported UC = Band 3 automatically
• 75% of £39.34 = £29.51 per week
• Annual saving: £1,538

Disabled resident with a non-dependant

Band C property, single person receiving PIP and ESA Support. Assessable income £140/week. One working adult son living at home.

• PIP triggers Band 2 eligibility
• £140 is below the Band 2 single threshold (£180): 75% reduction
• Band C with Single Person Discount: £1,818.19 × 0.75 = £1,363.64/year (£26.23/week)
• Gross weekly CTR: 75% × £26.23 = £19.67
• Non-dependant deduction: £19.67 − £12.00 = £7.67
• Above £3 minimum — award valid
• Annual saving: £399.91

The Cliff Edges to Watch

The banded system creates sharp drop-offs. A single person earning £120 per week (after disregard) gets a 55% reduction. Earn £120.01 and it drops to 35%. On a Band D property with Single Person Discount, that one-penny increase costs you roughly £5.90 per week — over £300 a year.

The same effect applies at every band boundary. If you're close to a threshold, it's worth checking whether overtime or extra hours will actually leave you better off after the CTR reduction.

For the full income band grid, UC calculation rules and step-by-step claim guidance, see our Hillingdon Council Tax Reduction guide.

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