Leeds Council Tax Reduction 2026/27: What the Scheme Pays This Year

Two Schemes, One Application

Leeds City Council runs two separate Council Tax Support schemes for working-age residents in 2026/27. Which one applies to you depends on your benefit status:

• The Universal Credit CTS Scheme covers anyone currently receiving Universal Credit, or who received UC-based council tax support at any point since April 2017. This includes UC jobseekers (Class 2), standard UC claimants (Class 3), war pensioners on UC (Class 1), and former UC claimants (Class 4).
• The General CTS Scheme covers eligible residents who have not claimed Universal Credit, including people on legacy benefits such as income-related Employment and Support Allowance, income-based Jobseeker's Allowance, or Income Support, as well as low-income workers.

You apply through the same route regardless of which scheme covers you. Leeds City Council determines which one applies based on your benefit records.

The 75% Cap and What It Means

Most working-age applicants can receive up to 75% of their net council tax bill as a discount. That means you will always pay at least 25% yourself. After Leeds raised council tax by 4.99% for 2026/27, the actual bill you face has gone up — a Band A property now costs roughly £71.89 more per year than last year, and Band B £83.87 more.

Two groups are exempt from the 75% cap. War pensioners and armed forces compensation recipients (Class 1 under the UC scheme) can receive up to 100%. Under the legacy General Scheme, residents with protected status — disabled people receiving Enhanced or Severe Disability Premium, lone parents with children under five, and carers receiving Carer's Allowance — also keep the 100% maximum. But once those residents migrate to Universal Credit, they move to the UC scheme's 75% cap (unless they hold a war pension).

How the Award Is Calculated

Your CTS award is not a flat percentage. Under the UC scheme, the council starts at 75% of your net weekly council tax charge, then subtracts a Surplus Income Deduction: 15% of whatever your eligible weekly income exceeds your personal allowance. If your income is at or below the allowance, the deduction is zero and you get the full 75%.

Under the General Scheme, the council uses a more traditional means test with a 20% income taper and applicable amounts based on your household composition.

Depending on their status and income, non-dependant adults in your home may trigger fixed weekly deductions from your award, ranging from £5.20 to £15.95 per week. Some non-dependants and households are exempt from a deduction.

The Pension-Age Difference

If you or your partner has reached the qualifying age for State Pension Credit, contact Leeds about the pension-age route; the household is not assessed under the working-age UC scheme. Pension-age rules can allow up to 100% council tax reduction, and the £16,000 capital limit does not apply where someone of qualifying age receives Pension Credit.

What This Means for Your Bill

Understanding the scheme rules before you apply helps you anticipate your award and spot errors in what the council offers. The Leeds Council Tax Reduction guide breaks down the surplus income formula with worked examples for every entitlement class, so you can check the council's calculation against your own numbers.

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