Council Tax Reduction Schemes
The question
To ask the Secretary of State for Housing, Communities and Local Government, with reference to correspondence from his Department entitled Council tax information letter 2/2026: Carers disregard, local council tax support schemes and other matters, published on 18 February 2026, whether the higher income from the removal of the two child limit in Universal Credit and working-age Housing Benefit will be liable to reduce the amount of local council tax support for working age households.
Answered by Alison McGovern
Local authorities are responsible for designing and reviewing their council tax support schemes for working-age residents. This includes assessing income and eligibility. The referenced council tax information letter encourages local authorities to consider the interaction of their council tax support schemes with changes in the wider benefit system.
The government does not prescribe the requirements for working-age council tax support schemes. It is ultimately for local authorities to decide whether the higher income from the removal of the two-child limit in Universal Credit and working-age Housing Benefit will be liable to reduce the amount of local council tax support for working age households.
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