Wirral Council Tax Reduction Scheme Changes April 2026 to 2027
Why Wirral Changed Its Scheme
Wirral Council was in severe financial distress heading into 2026/27. The council received Exceptional Financial Support from central government — £18.6 million in 2024/25 and £7.5 million in 2025/26 — amid budget pressures. Cutting the cost of the local Council Tax Reduction scheme was one of several savings measures.
The changes were approved by the Policy and Resources Committee and confirmed at Budget Council on 2 March 2026, taking effect on 1 April 2026. A public consultation ran beforehand, but resident awareness of the specific changes remained low until the new bills arrived.
Side-by-Side Comparison: 2025/26 vs 2026/27
| Rule | 2025/26 | 2026/27 |
|---|---|---|
| Maximum CTR award | 82.5% of liability | 50% of liability |
| Minimum resident contribution | 17.5% | 50% |
| Property band cap | None (actual band used) | Capped at Band D |
| Weekly earned income disregard | £50 | £20 |
| Disability income disregard | Broad disregards | £50/week additional (not if ESA Support Group) |
| Carer's Allowance disregard | Disregarded from income | Counted in full |
| ESA Support Component disregard | Disregarded from income | Counted in full |
| Capital limit | £6,000 | £6,000 (unchanged) |
| Non-dependant deduction | Graduated rates | £5 flat rate per non-dependant |
| Section 13A hardship fund | £100,000 | £200,000 |
Several changes can increase what working-age households pay, depending on their circumstances. The doubled hardship fund was intended to cushion the impact.
What Each Change Means
The 50% cap is the headline change. Under the old rules, a household on the lowest income paid 17.5% of their 2025/26 Band A bill — roughly £278 per year. Under the new rules, the same household pays 50% of the 2026/27 Band A bill — roughly £834. The estimated annual increase is about £557 for the most financially vulnerable residents.
The Band D property cap hits residents in larger homes. If you live in a Band E, F, G, or H property, your CTR is calculated as though you're in a Band D. You pay the difference between your actual band charge and the Band D charge out of your own pocket, on top of the 50% minimum payment.
The £20 earned income disregard (down from £50) means £30 more of your weekly earnings count toward the income assessment. For a household earning enough to sit near a band boundary, this change alone could push you into a lower-discount band.
The removed Carer's Allowance disregard means the full amount of Carer's Allowance is counted in your assessed income if you or your partner receives it. This could shift a household up an income band.
The removed ESA Support Component disregard means the full support component is counted as income, potentially moving a household into a higher band.
The flat £5 non-dependant deduction simplifies the old graduated system. Under the previous scheme, deductions varied by the non-dependant's income. Now it's £5 regardless — lower than the old maximum but higher than the old minimum for low-earning non-dependants.
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Who Is Not Affected
Pension-age residents are protected by national regulations. Wirral cannot reduce pension-age CTR below the nationally prescribed level, which allows awards of up to 100% with a £16,000 capital limit. None of the 2026/27 working-age changes apply to pension-age claimants.
Residents on passported benefits (Income Support, income-based JSA, income-related ESA) are automatically placed in Band 1 (50% CTR), provided capital does not exceed £6,000. The 50% cap hits them hard — they previously received 82.5% — but the income band placement is automatic.
The Hardship Safety Net
Wirral doubled its Section 13A discretionary hardship fund to £200,000 specifically because the council recognised the impact of the 50% cap. This fund covers cases of exceptional financial hardship where even the reduced CTR leaves a household unable to pay.
Applications require a detailed income and expenditure statement. Awards are discretionary — there's no automatic right to relief — but the doubled budget signals that the council expected significant need. See the Section 13A hardship fund guide for the application process.
What Might Happen for 2027/28
Wirral Council reviews the CTR scheme annually each autumn, with any changes subject to public consultation before adoption by 11 March 2027. Income band thresholds are reviewed in line with September CPI inflation, which may lead to adjustments to band boundaries.
Whether the 50% cap continues, increases, or decreases depends on the council's financial position and the next local government finance settlement. For residents concerned about future changes, the consultation period is the time to submit views.
For the full guide to navigating the current 2026/27 scheme, see the Wirral Council Tax Reduction guide.
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