Somerset Council Tax Reduction Income Bands: How Much Will You Get?

Somerset Council's working-age Council Tax Reduction scheme uses income bands rather than a gradual taper. It slots your household into one of four bands, each awarding a flat percentage discount. The gap between bands is steep — a few pounds of weekly income can cut your discount in half.

The 2026/27 Income Bands

Somerset Council uprated all thresholds by 3.8% for the current financial year, matching the September 2025 CPI figure the DWP uses for benefit uprating. Here's what each household type needs to earn (after disregards) to qualify at each level:

Single person:

• Band 1 (100%): up to £108.00/week
• Band 2 (50%): £108.01–£176.00
• Band 3 (25%): £176.01–£215.00
• Band 4 (10%): £215.01–£266.00

Single parent + 1 child:

• Band 1 (100%): up to £181.00/week
• Band 2 (50%): £181.01–£249.00
• Band 3 (25%): £249.01–£289.00
• Band 4 (10%): £289.01–£329.00

Couple, no children:

• Band 1 (100%): up to £159.00/week
• Band 2 (50%): £159.01–£238.00
• Band 3 (25%): £238.01–£294.00
• Band 4 (10%): £294.01–£350.00

Couple + 2 children:

• Band 1 (100%): up to £294.00/week
• Band 2 (50%): £294.01–£374.00
• Band 3 (25%): £374.01–£463.00
• Band 4 (10%): £463.01–£587.00

Anyone receiving Income Support, income-based JSA, or income-related ESA goes straight to Band 1 regardless of the numbers.

How Somerset Calculates Your Assessable Income

The council doesn't use your gross pay. Your "assessable weekly income" is calculated after subtracting specific disregards:

• £25.00/week earnings disregard if you or your partner works
• £30.00/week disability disregard if anyone in your household receives PIP, DLA, or Armed Forces Independence Payment
• Fully ignored income: Child Benefit, Child Maintenance, PIP, DLA, Attendance Allowance, Carer's Allowance, ESA Support Component, UC Housing Element, War Pensions

So if you earn £150 net per week, your assessable income after the £25 earnings disregard is £125 — placing a single person in Band 2 (50% discount) rather than Band 3.

Worked Example: What You'll Actually Pay

Take a single person living alone in a Band B property with an annual council tax of £1,560 (£30/week). They earn £150 net per week.

1. Apply the 25% Single Person Discount: £30.00 − £7.50 = £22.50/week net liability
2. Apply the £25 earnings disregard: £150 − £25 = £125 assessable income
3. Single person at £125/week = Band 2 (50% discount)
4. 50% of £22.50 = £11.25 weekly CTR award
5. Residual bill: £22.50 − £11.25 = £11.25 per week

Without CTR, that same person pays £22.50/week. The discount saves them £585 a year.

The Minimum Payment Problem

Somerset's scheme has no separate "minimum payment" rule the way some councils do. But Band 4 (10% discount) functions as the floor — if you qualify at all, you get at least 10% off.

The real minimum payment question comes from the Band D property cap. If you live in a Band E, F, G, or H property, Somerset calculates your CTR as if you lived in a Band D property. You're responsible for 100% of the difference between your actual band charge and the Band D charge. Even with a 100% CTR award, someone in a Band F property still pays the gap between Band F and Band D — which can be £20 or more per week.

Why the Cliff Edges Matter

Unlike a taper system where your discount shrinks gradually, Somerset's banded scheme creates sharp cliffs. Earning £1 above a band threshold drops your discount by a full tier. That's why reporting a change of circumstances can feel risky — a small pay rise might actually leave you worse off after council tax.

Our Somerset Council Tax Reduction guide includes a step-by-step income calculation worksheet that walks you through every disregard, so you can work out exactly which band you fall into before you apply.

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