Lambeth Council Tax Reduction Income Bands 2026/27
Lambeth switched to an income-banded Council Tax Support scheme in April 2026, replacing the old means-tested model. Your net weekly earnings and the number of dependent children in your household determine your support band; capital eligibility and non-dependant deductions also affect the award. Under the standard calculation, a working-age claimant pays at least 26.5% of the liability after other discounts, unless separate statutory relief or discretionary hardship support applies.
The Income Band Table
Lambeth sorts working-age households into five bands based on combined net weekly earnings (yours and your partner's). "Net" means gross pay minus income tax, National Insurance, and 50% of any pension contributions. Benefits — Universal Credit, PIP, DLA, Child Benefit, Carer's Allowance, ESA — are completely excluded from the calculation.
| Band | Support | No children | 1 child | 2 children | 3 children | 4 children | 5+ children |
|---|---|---|---|---|---|---|---|
| 1 | 73.5% | £0 | £0 | £0 | £0 | £0 | £0 |
| 2 | 55.0% | £0.01–£100 | £0.01–£130 | £0.01–£160 | £0.01–£190 | £0.01–£220 | £0.01–£250 |
| 3 | 45.0% | £100.01–£200 | £130.01–£230 | £160.01–£260 | £190.01–£290 | £220.01–£320 | £250.01–£350 |
| 4 | 30.0% | £200.01–£300 | £230.01–£330 | £260.01–£360 | £290.01–£390 | £320.01–£420 | £350.01–£450 |
| 5 | 15.0% | £300.01–£380 | £330.01–£410 | £360.01–£440 | £390.01–£470 | £420.01–£500 | £450.01–£530 |
| Out | 0% | £380.01+ | £410.01+ | £440.01+ | £470.01+ | £500.01+ | £530.01+ |
Children raise the earning thresholds by £30 per band for each additional child, up to five or more. A single person earning £150/week lands in Band 3 (45% off), but the same earnings with two children still qualify for Band 2 (55% off).
The 26.5% Minimum Payment
Under the old scheme, some protected groups paid nothing at all. That changed in 2026/27. The maximum discount under the standard working-age scheme is now 73.5%, which leaves at least 26.5% of the liability after other discounts to pay — even at Band 1 with zero earned income, unless separate relief or discretionary hardship support applies.
For a Band D property in Lambeth, the 2026/27 annual bill of £2,047.11 leaves about £10.43 per week at the 26.5% minimum, or about £7.82 after the 25% Single Person Discount.
How the Calculation Works
The council follows this sequence:
- Start with your annual council tax for your property's valuation band
- Apply any statutory discounts first (Single Person Discount, disabled band reduction)
- Divide the remaining annual figure by 52 to get your net weekly liability
- Match your net weekly earnings and child count to the band table above
- Multiply your weekly liability by the band's support percentage — that's your base award
- Subtract any non-dependant deductions (£10/week for non-working adults, £16/week for working adults living with you)
The result is your weekly Council Tax Reduction. If non-dependant deductions bring it below £0.01, the award is zero.
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Worked Example
A single parent with one child earns £180 gross per week. After £25 in tax and NI deductions: net weekly earnings = £155. With one child, that falls into Band 3 (£130.01–£230), giving 45% off.
If the net weekly council tax liability is £30 after the Single Person Discount, the base award is £30 × 45% = £13.50/week. The parent pays £16.50/week — considerably less than the full bill.
Check Your Band Before You Apply
The Lambeth Council Tax Reduction Guide includes a net weekly earnings calculator and the full band grid, so you can work out your exact support percentage and minimum payment before starting the application.
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Download the Lambeth Council Tax Reduction Checklist — a printable guide with checklists, scripts, and action plans you can start using today.