Council Tax Reduction - proposed change to the scheme
Complete the CTR scheme proposed change survey
What is Council Tax Reduction?
Council Tax Reduction (CTR) is a Council Tax Discount scheme to help those in low-income households. It reduces Council Tax based on who lives in the property and how much income they have.
People of working age currently receive CTR of up to a maximum of 70% of a Band A property charge.
This is a local scheme set by Bradford Council.
More information about the current CTR scheme can be found on the council’s website.
Who is affected by the proposed changes?
The change would only affect those of working age*.
There is a separate national CTR scheme for Pensioners who are not affected by the change proposed in this consultation.
*Working age; from 18 (when liable to pay Council Tax) until retirement age 66 or 67 (depending on date of birth)
Why is the council proposing to change the CTR scheme?
In 2025/26, Bradford’s Council Tax increased by 9.99%. This was a higher-than-average rise because of the council’s financial position. The increase had to be agreed with the government in early 2025 shortly before the Council Tax bills went out.
The council introduced a hardship scheme to help those households on low incomes affected by the Council Tax rise. A one-off £30 credit is applied to the Council Tax accounts of working age households in receipt of CTR in 2025/26.
The hardship scheme was a short-term measure to quickly help those affected in time for the 2025/26 annual bills. A proposed change to the CTR scheme, which needs time for consultation to take place, was planned for the following financial year.
What change is proposed to the CTR scheme from 2026/27?
For working aged people, the maximum amount of Council Tax Reduction would increase from 70% of a band A property charge to 72.5% of a band A property charge.
This would reduce the Council Tax that people receiving CTR would have to pay.
A reduction in Council Tax of up to £37 a year would apply.
Most CTR claimants live in Council Tax Band A or Band B properties. The amount received may reduce depending on your circumstances e.g. if you are not entitled to maximum benefit, are only in receipt of CTR for a part- year or receive other discounts such as the 25% single person discount.
- Example 1: If you live in a Band A property and have the maximum 70% award for 2025/26 and do not receive the 25% single person discount, you currently pay £443.93, if you received 72.5% you would pay £406.93: a reduction in the amount payable for the year of £37
- Example 2: If you live in a Band B property and have the maximum 70% award for 2025/26 and receive the 25% single person discount; you currently pay £517.91 for the year. If you received a maximum award of 72.5%, you would pay £490.16; a reduction in the amount payable for the year of £27.75.
If this proposed change is implemented, it will build in the protection for the impact of the 2025/26 Council Tax rise for those on the lowest incomes from 2026/27 onwards without the need for a hardship scheme in 2026/27 and future years.
It is a fairer option than a hardship scheme overall as CTR tracks changes to household income to support people when they most need it e.g.an increase in CTR following a job loss and is removed or reduced when income increases again e.g. a reduction in CTR after a new job starts. This is better than a standard £30 award which is the same for all regardless of changes to entitlement and ability to pay throughout the year.
How much will this change cost the council?
The change would cost the council and its major preceptors (police and fire) approximately £0.9million in 2026/27. This is split between the council 84% and police and fire 16%
Tell us what you think about this proposed change
We want your views about changing the CTR scheme for people of working age in 2026/27.
You can have your say on this proposed change by completing our CTR scheme change survey.
The survey will close on 11 November 2025.
After this date, we will review the responses we have received, and this will contribute towards the final decision about CTR for 2026/27.
The Bradford District CTR scheme for 2026/27 will be decided in the Budget Council of 10 March 2026.