Leicester Council Tax Income Bands 2026/27: How Much Reduction Will You Get?
How Leicester's Income Bands Work
Leicester City Council uses an income-banded system for working-age Council Tax Reduction. Instead of a penny-by-penny means test, your weekly net income places you in one of six bands, and each band gives a fixed percentage discount. The system was introduced in April 2025 and continues with uprated thresholds for 2026/27.
Your discount depends on two things: which income band your household falls into, and whether your household qualifies as "vulnerable" under the scheme.
The 2026/27 Income Band Grid
Vulnerable households (those receiving qualifying disability or carer benefits) use this grid. Band 1 gives a full 100% discount:
| Band | Discount | Single | Couple, no children | 1 child | 2 children | 3+ children |
|---|---|---|---|---|---|---|
| 1 | 100% | £0–£155.70 | £0–£155.70 | £0–£155.70 | £0–£207.60 | £0–£259.50 |
| 2 | 80% | £155.71–£233.55 | £155.71–£233.55 | £155.71–£311.40 | £207.61–£363.30 | £259.51–£415.20 |
| 3 | 60% | £233.56–£285.45 | £233.56–£285.45 | £311.41–£363.30 | £363.31–£415.20 | £415.21–£467.10 |
| 4 | 40% | £285.46–£337.35 | £285.46–£337.35 | £363.31–£415.20 | £415.21–£467.10 | £467.11–£519.00 |
| 5 | 20% | £337.36–£389.25 | £337.36–£389.25 | £415.21–£467.10 | £467.11–£519.00 | £519.01–£570.90 |
| 6 | 0% | £389.26+ | £389.26+ | £467.11+ | £519.01+ | £570.91+ |
Non-vulnerable households cannot access Band 1. Their maximum is 80%, so everyone in this group pays at least 20% of their bill:
| Band | Discount | Single | Couple, no children | 1 child | 2 children | 3+ children |
|---|---|---|---|---|---|---|
| 2 | 80% | £0–£155.70 | £0–£155.70 | £0–£155.70 | £0–£207.60 | £0–£259.50 |
| 3 | 60% | £155.71–£233.55 | £155.71–£233.55 | £155.71–£311.40 | £207.61–£363.30 | £259.51–£415.20 |
| 4 | 40% | £233.56–£285.45 | £233.56–£285.45 | £311.41–£363.30 | £363.31–£415.20 | £415.21–£467.10 |
| 5 | 20% | £285.46–£337.35 | £285.46–£337.35 | £363.31–£415.20 | £415.21–£467.10 | £467.11–£519.00 |
| 6 | 0% | £337.36+ | £337.36+ | £415.21+ | £467.11+ | £519.01+ |
The Minimum Payment
Non-vulnerable working-age households always pay at least 20% of their eligible council tax — even at the lowest income. For a Band A property with a 2026/27 annual charge of £1,685.83, that minimum payment is £337.17 per year, or about £28.10 per month over 12 instalments.
Vulnerable households have no minimum payment. If your income falls in Band 1, the council covers 100% of your eligible charge.
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Property Band Caps
Your discount is calculated against a capped council tax amount, not necessarily your actual bill:
- Vulnerable households: capped at a Band C charge. If you live in a Band D or higher property, your percentage discount applies to the Band C rate. You pay the difference plus whatever your band percentage leaves.
- Non-vulnerable households: capped at a Band B charge.
If your property is already at or below the cap, this rule makes no difference to you.
Three Worked Examples
Example 1 — Single person on Universal Credit, Band A property (non-vulnerable) Weekly net income: £140. This falls in Band 2 (£0–£155.70) for a single non-vulnerable person. The 2026/27 Band A annual charge is £1,685.83 (£32.42/week). The 80% discount gives £25.94/week off. Net payment: about £6.48/week.
Example 2 — Lone parent with two children, Band B property (vulnerable, receives PIP) Weekly net income: £195. With two children and vulnerable status, this falls in Band 1 (£0–£207.60). Band B is below the Band C cap. The 100% discount wipes the full charge. Net payment: £0.
Example 3 — Working couple, Band D property (non-vulnerable) Combined weekly net income: £220. For a couple with no children, this falls in Band 3 (£155.71–£233.55). The Band B property cap applies, so the 60% discount runs against the Band B charge (about £37.82/week), giving a £22.69 weekly reduction. The actual Band D charge is about £48.63/week, so net payment comes to around £25.94/week.
How to Calculate Your Net Weekly Income
Start with your gross earnings. Subtract Income Tax, National Insurance, and half of any pension contributions. That gives your net employment income. Add any other counted income (certain benefits, maintenance payments above disregarded amounts).
Do not count: Child Benefit, Housing Benefit, UC housing costs element, War Pensions, Armed Forces Independence Payments, or childcare costs up to £300/week.
If your income fluctuates — common with Universal Credit — the banded system gives you a buffer. Small changes that stay within the same band do not trigger a recalculated bill. Only a shift across a band boundary changes your discount.
Getting the Full Picture
The income bands determine your percentage, but the actual amount depends on your property band, any statutory discounts already applied (like the 25% single person discount), and whether you qualify as vulnerable. The Leicester Council Tax Reduction guide includes a net income worksheet to map your exact figures against these thresholds.
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