Walsall Council Tax Reduction Scheme Changes 2026
Walsall Council ran a public consultation in autumn 2026 on proposed changes to its working-age Council Tax Reduction scheme. If adopted, the changes would alter how income is assessed and how non-dependant deductions work — affecting thousands of households across the borough.
Here is what was proposed, what it means in practice, and what to watch for.
The Current Scheme
Since April 2022, Walsall has operated an income-banded grid scheme for working-age claimants. Your total net weekly household income is assessed under fixed brackets for your household type (single, couple, with or without children), subject to the scheme's rules on which income counts. The bracket determines your discount: 75%, 65%, 55%, 45%, 25%, or 0%.
The maximum discount is 75%, leaving a 25% minimum payment on every working-age bill. The capital limit is a hard £6,000 — any savings at or above that level disqualifies you completely.
What the Consultation Proposed
On 16 September 2026, Walsall Council's Cabinet approved a consultation running from 24 September to 21 October 2026. Three options were evaluated:
Option 1: Status quo with minor tweaks. Keep the existing income-banded grid but adjust how certain Universal Credit elements are treated in the income calculation. This is the least disruptive change and largely maintains current award levels.
Option 2: Earned-income focus with flat-rate non-dependant deductions. This would fundamentally change the assessment by looking at earned income only (rather than total household income) and introducing a standardised £10 per week non-dependant deduction regardless of the non-dependant's actual income. The proposal also contemplated adjusting the maximum discount cap; the final cap was not established by the consultation.
Option 3: Alternative structural variations. Further models explored during the consultation to gauge public preference before the Full Council vote.
What Option 2 Would Mean in Practice
The earned-income-only model is the most significant potential change. Under the current scheme, household income is assessed under the scheme's rules; some income, including PIP and DLA, is disregarded. Under Option 2, only earned income would be assessed against the bands.
For a household with no earnings — someone on UC with no work, for example — this could mean a higher discount, since their UC award would not count as income. For a working household where most income is earned, the impact might be neutral or mixed depending on the specific band thresholds chosen.
The flat-rate £10 non-dependant deduction is simpler than the current system, where non-dependant income must be declared and assessed. A flat rate removes the evidence-gathering burden (no more chasing your adult child for their payslips) but could disadvantage households where the non-dependant earns very little and currently attracts a smaller or nil deduction.
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What Happens Next
The consultation closed on 21 October 2026. The results and any recommendations go to Full Council, which must adopt the scheme for the next financial year by 11 March. Until the Full Council votes, the current 2022-era income-banded scheme remains in force.
Key dates to watch:
- Full Council adoption — the council must adopt the scheme for the upcoming financial year by 11 March
- Annual demand notices — sent in March, showing your bill and any CTR discount under the new or continuing scheme
- Transition arrangements — check any notice from the council to see how an adopted change affects your award and whether it needs information from you
What You Should Do
Right now, the 2026/27 scheme runs as normal until 31 March 2027. If you qualify for CTR and have not claimed, apply under the current rules. Any scheme adopted for 2027/28 may affect entitlement from the start of that year.
If the scheme changes, check any notice from the council to see whether your award will be reassessed automatically or whether you need to provide information. Watch your March 2027 demand notice carefully to check the calculation against the adopted scheme.
Our Walsall Council Tax Reduction guide covers the current scheme rules in full, including the income-band tables and worked examples for every household type. When the 2027/28 scheme is confirmed, having a clear understanding of the current rules makes it easier to spot what has actually changed on your new bill.
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Download the Walsall Council Tax Reduction Checklist — a printable guide with checklists, scripts, and action plans you can start using today.