Redbridge Council Tax Reduction Five Schemes Explained

How Redbridge's Banded Scheme Differs from Other Councils

Most English councils use a traditional means-tested taper — they take your excess income above a threshold and reduce your support by 20p for every extra pound. Redbridge doesn't work that way.

Instead, Redbridge sorts every working-age household into one of five fixed tiers. Your tier depends on three things: whether you receive a qualifying disability benefit, whether you have dependent children, and whether you're working (and if so, your net weekly earnings). Each tier has a hard ceiling on how much of your Council Tax bill it covers.

The Five Tiers for 2026/27

Scheme 1 — Up to 73% reduction You qualify if you or your partner receives Personal Independence Payment (PIP), Disability Living Allowance (DLA), Attendance Allowance, or Armed Forces Independence Payment. This is the most generous tier, and it comes with a major extra benefit: no non-dependant deductions. Other adults living in your home don't reduce your award at all.

Scheme 2 — Up to 60% reduction You have one or more dependent children, and you or your partner receives Income Support, income-based JSA, income-related ESA, contributory ESA (not working), or Universal Credit (not working). Non-dependant deductions apply: £10.20/week per non-working adult, £20.40/week per working adult (unless they receive Carer's Allowance — then £0).

Scheme 3 — Up to 50% reduction Same qualifying benefits as Scheme 2, but you have no dependent children. The non-dependant deduction rates are identical.

Scheme 4 — Up to 46% reduction You have dependent children and you're in work with combined net earnings under £313 per week, or you're not working and don't receive any of the passported benefits listed above. Same non-dependant deduction structure.

Scheme 5 — Up to 36% reduction No dependent children, in work with combined net earnings under £234 per week, or not working and not receiving qualifying benefits. This is the lowest tier — you still owe 64% of your annual bill.

How Net Earnings Are Calculated

The earnings thresholds (£313/week for Scheme 4, £234/week for Scheme 5) use net income, not gross. The council calculates this by taking your gross wages and deducting income tax, National Insurance contributions, and 50% of any personal or occupational pension contributions.

Self-employed claimants get assessed on actual profit over a representative period, minus allowable expenses, tax, NI, and half of pension contributions. Unlike Universal Credit, Redbridge's scheme does not apply a Minimum Income Floor to self-employed income.

What This Means in Real Money

Take a Band C property in Redbridge with a weekly Council Tax liability of about £38.

• Scheme 1 reduces that to £10.26/week (saving £27.74)
• Scheme 2 reduces it to £15.20/week (saving £22.80)
• Scheme 3 reduces it to £19.00/week (saving £19.00)
• Scheme 4 reduces it to £20.52/week (saving £17.48)
• Scheme 5 reduces it to £24.32/week (saving £13.68)

These figures assume no non-dependant deductions and no tariff income from savings. If you have a working adult child living with you under Schemes 2-5, subtract another £20.40/week from your reduction — which can push you below the £10/week minimum and wipe out your award entirely.

Checking Which Scheme You Fall Into

The boundaries can be confusing, especially if your circumstances sit near a threshold. A small change in working hours or a non-dependant getting a job can shift your tier overnight.

Our Redbridge Council Tax Reduction guide includes a scheme-finder walkthrough with worked examples for every tier, plus the capital tariff rules that apply if your savings sit between £6,000 and £16,000. It also covers exactly what to report when your circumstances change, so a tier shift doesn't catch you off guard.

See more England guides →