How Council Tax Reduction Is Calculated in Leeds: Surplus Income and Non-Dependant Deductions

The Three Layers of the Calculation

Leeds calculates your Council Tax Support award in three steps. First, the council establishes your base entitlement (75% of net liability for most working-age residents). Second, it applies the surplus income deduction based on your earnings. Third, it subtracts any non-dependant deductions for other adults in your household.

Understanding each layer helps you check whether the council got your award right — and challenge it if they did not.

Step 1: Your Base Entitlement

Your net weekly council tax charge is the starting point — that is your annual bill divided by 52, minus any Single Person Discount (25%) or disabled band reduction you already receive.

Most working-age claimants start at 75% of that net figure. War pensioners and armed forces compensation recipients start at 100%. Under the legacy General Scheme (for residents not yet on Universal Credit), protected groups — disabled residents on Enhanced Disability Premium, lone parents with children under five, and carers — also start at 100%.

Step 2: The Surplus Income Deduction

Under the UC scheme, Leeds takes your net eligible weekly income and subtracts a CTS Personal Allowance. That allowance mirrors the DWP's Universal Credit standard monthly allowance, converted to weekly. In 2026/27, for a single person aged 25 or over, this is approximately £90.80 per week.

If your income exceeds the allowance, 15% of the surplus gets deducted from your base award.

Worked example: A single worker with a £22.50 net weekly charge and £130 eligible weekly income has a £90.80 CTS Personal Allowance. Surplus income is £39.20. The deduction is £39.20 × 15% = £5.88 per week. The base award is £16.88 (75% of £22.50), reduced to £11.00 after the surplus deduction.

Under the General Scheme, the taper rate is steeper at 20%, but different applicable amounts and disregards apply.

Step 3: Non-Dependant Deductions

An adult aged 18 or over living with you — who is not your partner, a boarder, or a joint tenant — may trigger a fixed weekly deduction. The council uses tiers based on the non-dependant's status and gross weekly income, ranging from £0 (for some exempt cases) up to £15.95 per week (if they earn over £605 gross).

The deductions apply per non-dependant. Two working adults in your home earning £350 per week each would trigger two separate £10.60 deductions (£21.20 total per week off your award).

These deductions are waived entirely if you or your partner receive Attendance Allowance, PIP daily living, DLA care component, Adult Disability Payment, or Armed Forces Independence Payment — or if you are registered blind.

Second Adult Rebate

Second Adult Rebate (where a second adult on a low income lives with you) is not available to working-age residents in Leeds under either the UC or General scheme. Only pension-age claimants assessed under national regulations can access this alternative. If someone has told you to apply for it, check whether you meet the pension-age criteria first.

Check Your Own Award

If the council's calculation looks wrong — the non-dependant tier does not match the adult's gross income, or the surplus income figure seems too high — you can ask for a written breakdown and write to Leeds asking it to look at the decision again, stating your grounds. If you still disagree with its reply, you can appeal to the Valuation Tribunal. The Leeds Council Tax Reduction guide includes a calculator worksheet that walks through the surplus income formula step by step, so you can verify the council's maths before you challenge.

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