Sandwell Council Tax Reduction Income Bands 2026/27 — Every Threshold Explained

How Sandwell's Income Bands Work

Most English councils calculate Council Tax Reduction using a taper — a sliding formula that shaves a percentage off your entitlement for every pound you earn above a threshold. Sandwell took a different approach. Since 2025, the council places your household into one of six income bands, each assigned a fixed discount percentage: 100%, 90%, 75%, 50%, 25%, or 0%.

The system is simpler to understand but unforgiving at the edges. One pound above a threshold drops you an entire tier — from 100% to 90%, or from 25% to nothing.

The 2026/27 Income Grid

These are the net weekly income limits for each household type. "Net" means gross earnings minus Income Tax, National Insurance, and half of any qualifying pension contributions.

Single person (no children):

• £0–£98.05: 100% discount
• £98.06–£128.05: 90%
• £128.06–£158.05: 75%
• £158.06–£188.05: 50%
• £188.06–£218.05: 25%
• Above £218.05: no reduction

Single parent + 1 child:

• £0–£206.15: 100%
• £206.16–£236.15: 90%
• £236.16–£266.15: 75%
• £266.16–£296.15: 50%
• £296.16–£326.15: 25%
• Above £326.15: ineligible

Single parent + 2 or more children:

• £0–£294.03: 100%
• £294.04–£324.03: 90%
• £324.04–£354.03: 75%
• £354.04–£384.03: 50%
• £384.04–£414.03: 25%
• Above £414.03: ineligible

Couple (no children):

• £0–£153.92: 100%
• £153.93–£183.92: 90%
• £183.93–£213.92: 75%
• £213.93–£243.92: 50%
• £243.93–£273.92: 25%
• Above £273.92: ineligible

Couple + 1 child:

• £0–£262.02: 100%
• £262.03–£292.02: 90%
• £292.03–£322.02: 75%
• £322.03–£352.02: 50%
• £352.03–£382.02: 25%
• Above £382.02: ineligible

Couple + 2 or more children:

• £0–£349.90: 100%
• £349.91–£379.90: 90%
• £379.91–£409.90: 75%
• £409.91–£439.90: 50%
• £439.91–£469.90: 25%
• Above £469.90: ineligible

What Counts as Income (And What Doesn't)

Universal Credit payments count, but specific elements — the housing costs element, disabled child element, and carer elements — are subject to local adjustments that may reduce your assessable income.

These benefits are fully disregarded: Child Benefit, Disability Living Allowance, Personal Independence Payment, Attendance Allowance, Armed Forces Independence Payments, War Disablement Pensions, and War Widow's Pensions. Payments under the Armed Forces Compensation Scheme also receive a 100% local income disregard. If you receive PIP alongside earnings, only the earnings count.

Lodger income from a commercial boarder is treated under income rules, not as a non-dependant deduction.

The 85% Cap on Top

Even if you land in the 100% discount band, working-age claimants without a child under six get a maximum award of 85% of eligible liability. That discount percentage from the grid above is applied to the 85% figure, not the full bill.

A single person in Band A with the 25% single person discount owes £1,122.23 per year. The 85% cap makes the maximum reduction £953.91. If you're in the 75% band, your actual award is 75% of £953.91 = £715.43, leaving you with £406.80 for the year.

How to Estimate Your Reduction

Take your household type, find your net weekly income band, note the discount percentage, then apply it to 85% of your eligible Band B (or lower) liability. That gives you a reasonable estimate.

For worked examples across every property band and household type, the Sandwell Council Tax Reduction guide includes a self-calculation worksheet and three detailed scenarios.

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