Nottingham Council Tax Reduction Eligibility and Income Limits

Working-Age Rules Are Stricter Than You Expect

Nottingham City Council runs two separate Council Tax Support schemes under the same roof. The pension-age scheme follows national rules set by Parliament, with a generous £16,000 capital limit and awards up to 100% of your bill. The working-age scheme is entirely local, and its parameters are tighter.

If you are below State Pension age and live within Nottingham City Council's boundaries, three hard limits shape your eligibility:

1. £6,000 capital ceiling — savings, investments, and cash across all accounts. Capital above £6,000 makes you ineligible on capital grounds. There is no sliding scale above this threshold.
2. 80% Band B liability cap — the maximum award covers 80% of a Band B property charge. If you live in a higher-banded property, the maximum is still calculated against Band B. You pay the difference.
3. £5 per week minimum award — if the means test calculates your weekly support at less than £5, you receive nothing.

These rules have been in effect since April 2025 and continue through the 2026/27 financial year.

The Means Test: How Income Affects Your Award

There is no single income cutoff above which you cannot claim. Instead, the council compares your net household income against your "applicable amount" — a needs threshold based on your household size, disability premiums, and number of dependants.

If your income matches or falls below the applicable amount, you receive the maximum award (80% of your Band B-capped liability). If your income exceeds it, the excess is tapered: for every £1 of excess weekly income, your support is reduced by a standard percentage.

Income that counts includes wages, self-employment profit, pensions, most benefits, and maintenance payments. Certain income is disregarded — disability benefits like DLA and PIP are not counted as income for the means test.

Capital: The £6,000 Line

Capital includes bank balances, building society accounts, ISAs, premium bonds, stocks, and any property you own beyond your home. The assessment covers every account held by you and your partner.

Capital of £6,000 or less does not breach the capital limit. Above £6,000, you are ineligible on capital grounds. Pension-age applicants have a much more forgiving £16,000 limit, and those on Guarantee Pension Credit face no capital test at all.

If your savings are near £6,000, prepare complete evidence for all accounts and check how any recent lump sums or transfers should be reported.

Who Does Not Need to Worry About These Limits

Pension-age residents — anyone who has reached State Pension qualifying age — are assessed under national rules where the capital limit is £16,000, there is no Band B property cap, and awards can cover 100% of the bill. You apply through the same Nottingham City Council portal, but the rules that apply to your claim are fundamentally different.

What to Do Next

Check whether your property actually falls under Nottingham City Council (not Broxtowe, Gedling, or Rushcliffe — the billing authority name on your council tax bill is the only test that matters). Then gather two months of bank statements for every account to verify your capital position before applying.

For worked examples showing how the means test, Band B cap, and £5 minimum interact in practice, the Nottingham Council Tax Reduction guide walks through three real calculation scenarios step by step.

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