Lambeth Council Tax Reduction for Families and Single Parents
Lambeth's Council Tax Reduction scheme gives families more room than you might expect. Each dependent child in your household raises the net earnings threshold for every income band — meaning you can earn more and still qualify for the same percentage discount as a single person on lower wages. Single parents get an additional advantage: the 25% Single Person Discount is applied to the bill before CTR is calculated.
How Children Affect Your Income Band
The 2026/27 banded scheme scales the earnings thresholds by £30 per child for each band. Here's the practical difference:
| Band | Support | No children | 1 child | 2 children | 3 children |
|---|---|---|---|---|---|
| 2 | 55% | Up to £100/wk | Up to £130/wk | Up to £160/wk | Up to £190/wk |
| 3 | 45% | Up to £200/wk | Up to £230/wk | Up to £260/wk | Up to £290/wk |
| 4 | 30% | Up to £300/wk | Up to £330/wk | Up to £360/wk | Up to £390/wk |
| 5 | 15% | Up to £380/wk | Up to £410/wk | Up to £440/wk | Up to £470/wk |
A single person earning £250/week net with no children is in Band 4 (30% off). A parent earning the same £250/week with two children is still in Band 3 (45% off) — a substantially larger discount.
Band 1 (73.5%) applies to all households with £0 net earned income, regardless of children. Child Benefit and the child elements of Universal Credit don't count as earned income.
Single Parent Discount and CTR Together
If you're the only adult in your home, you receive the 25% Single Person Discount on your council tax bill. This discount is applied first, reducing the liability that Council Tax Reduction is then calculated against.
Example: a Band C property has an annual council tax of about £1,820 for 2026/27. The Single Person Discount brings that down to roughly £1,365. Council Tax Reduction is calculated on the £1,365 figure; a 45% award reduces it by about £614, leaving roughly £751 for the year before any other adjustments.
Children under 18 don't count as adults for the Single Person Discount, so a single parent living with three children under 18 still qualifies for the 25% reduction.
When a Child Turns 18
This is the reporting trigger that catches families off guard. The day your child turns 18, two things change:
- They no longer count as a dependent child for the income band thresholds — your earnings ceiling drops by £30 per band
- If they continue living with you, they become a non-dependant, adding a £10/week (non-working) or £16/week (working) deduction from your award
Report relevant changes within 21 days, or as soon as reasonably practicable after that if you could not report sooner. A £70 civil penalty may apply if, without reasonable excuse, a failure to report promptly causes an excess reduction; excess support may also be recovered.
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What About Child Maintenance?
Maintenance payments received for your children are fully disregarded under the income calculation. They're treated the same as benefits — not counted as earned income. Paying maintenance to an ex-partner's household also doesn't affect their income band calculation.
Claim for Your Full Household
The Lambeth Council Tax Reduction Guide includes the complete income band grid for households with up to five or more children, a worked example for single-parent households, and a change of circumstances log for tracking child age milestones.
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