Nottingham Council Tax Support Band B Cap and 80 Percent Maximum

Two Caps, One Bill

Nottingham City Council applies two separate limits to working-age Council Tax Support awards. Both reduce what the scheme pays, and they stack.

The 80% cap means the maximum support you can receive covers 80% of your eligible liability — never 100%. Even if you have zero income and zero savings, you still pay at least 20% of the council tax for a Band B property.

The Band B property cap means if your home is in Band C, D, E, F, G, or H, the council calculates your maximum support as if you lived in a Band B property. The extra liability above Band B is entirely yours.

These rules have been in effect since April 2025 and continue through the 2026/27 financial year. The pension-age scheme has neither cap — pension-age residents can receive up to 100% of their actual bill with no property band restriction.

What This Looks Like in Practice

A single working-age adult in a Band A property with gross annual liability of £1,400:

• Single Person Discount (25%) reduces it to £1,050 (£20.19/week)
• 80% cap on Band A: maximum support of £16.15/week
• Net bill: roughly £4.04/week — about £210 a year

A single working-age adult on Universal Credit in a Band C property with gross annual liability of £2,100:

• Single Person Discount reduces it to £1,575 (£30.29/week)
• Band B cap applies: maximum support calculated against Band B, capped at 80% — roughly £18.80/week
• Net bill: £11.49/week — about £597 a year

The Band C resident pays nearly three times more out of pocket, not because their income is higher, but because their property sits one band above the cap.

The £5 Minimum Award Floor

There is a third limit. If the means test calculates your weekly support at less than £5, you receive nothing. The council rounds it to zero.

This catches households whose income sits just above the applicable amount. The taper calculation might produce a £4.50 weekly award — enough to make a noticeable difference over a year — but Nottingham's scheme treats anything under £5 as not worth administering.

The same £5 threshold applies to in-year changes. If your income rises or falls and the recalculated award changes by less than £5 per week, your bill stays the same until the cumulative shift crosses £5 or the financial year ends.

Why This Matters for Higher-Banded Properties

Nottingham properties in Bands D through H face the worst outcome. The support calculation is locked to Band B rates while the actual bill reflects the higher band. A household in a Band D property might owe over £700 a year out of pocket even on maximum support — and that is before the £5 minimum wipes out marginal awards.

If you are in a higher-banded property and believe your band is wrong, a property band challenge through the Valuation Office Agency is free and entirely separate from your Council Tax Support claim. Getting rebanded to a lower band increases what the scheme pays.

The Nottingham Council Tax Reduction guide walks through the full calculation order — gross liability, statutory discounts, Band B capping, means test, taper, and minimum threshold — with three worked examples at different bands and household sizes.

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