Salford Council Tax Reduction 2026/27 — What Changed This Year

Three Key Changes for 2026/27

Salford's Council Tax Reduction scheme is reviewed every year after a public consultation. For the 2026/27 financial year (April 2026 to March 2027), the council approved three significant enhancements following the consultation that ran from November 2025 to January 2026.

1. UC Transitional Protection Payments Disregarded

Previously, the DWP's Universal Credit Transitional Protection Payment (UCTPP) was counted as unearned income in the CTR calculation. From April 2026, it's fully disregarded.

This matters most for people who were moved from legacy Employment and Support Allowance with Severe Disability Premium onto Universal Credit. Their UCTPP — the top-up that prevents a cash loss from the migration — no longer pushes them towards a lower income band. The consultation showed 54.1% of respondents supported this change.

2. The 45% Pension Income Disregard

Working-age couples where one partner is of State Pension age now have 45% of that partner's state or occupational pension income disregarded from the income calculation. Previously, pension income was counted in full.

This specifically protects mixed-age couples where a working-age carer supports a pension-age partner. The disregard prevents the pension income from pushing the household into a lower CTR band. It was supported by 63.9% of consultation respondents.

3. Transitional Protection Extended

The six-month transitional protection scheme — which prevents a sudden award drop of more than 20% when households migrate from legacy benefits to Universal Credit — has been retained for migrations occurring after 1 April 2026. This was the most popular change in the consultation, with 79.1% support.

Updated Income Band Thresholds

The 2026/27 income band thresholds have increased slightly from 2025/26, reflecting updated financial parameters:

Band 1 (88% reduction) — single claimant: up to £468.04/month (was £440.70) Band 1 — couple: up to £725.44 (was £683.09) Band 1 — family with 1 child: up to £1,053.09 (was £991.58) Band 1 — family with 2+ children: up to £1,652.13 (was £1,555.67)

The increases apply across all five bands and all four household categories. For households near a band boundary, the upward shift could mean staying in a higher band than they would have been in under last year's thresholds.

The minimum payment remains at 12% for all working-age households. Maximum award is still capped at 88% (Band 1).

What Counts as Income

The core income rules are unchanged from 2025/26, but the new disregards alter the calculation for affected households:

Fully disregarded (not counted):

• PIP, DLA, and Attendance Allowance
• Child Benefit
• War Pensions
• Cold Weather and Winter Fuel Payments
• UC Housing, Childcare, Disabled Child, Carer, and LCW/LCWRA elements
• UC Transitional Protection Payments (new for 2026/27)

Partially disregarded:

• State and occupational pensions — 45% disregard for working-age couples (new for 2026/27)

Counted:

• Net earned income (after tax, NI, and 50% of pension contributions)
• Net UC payment (after element disregards)
• Carer's Allowance
• Private pensions (with 45% disregard where applicable)

Capital and Savings

Salford's income-banded scheme for Universal Credit households assesses eligibility based on net monthly income, not capital. Capital is checked during the application to confirm basic eligibility, but savings below the cut-off threshold don't generate a tariff income addition — unlike the legacy means-tested system where every £250 above the lower capital limit added a notional income figure.

For households on the legacy scheme (not yet on UC), separate capital rules apply. National legacy schemes typically have lower and upper capital limits, often £6,000 and £16,000, with tariff income charged between them; check Salford's current rules for the applicable treatment.

What You Need to Do

If you're already receiving CTR, the updated thresholds and new disregards are applied automatically from your next assessment period after April 2026. You don't need to reapply.

If you're not yet claiming, the higher thresholds mean more households qualify than last year. It's worth checking your eligibility on BetterOff Salford (salford.entitledto.co.uk), which is updated for the 2026/27 rules.

If you were previously refused CTR because your income was just above a band threshold, the updated thresholds might change the outcome. You can submit a new application at any time.

For the full income band tables, application steps, and evidence checklists, the Salford Council Tax Reduction guide covers the complete 2026/27 scheme.

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