Have Your Say on Salford’s Council Tax Reduction Scheme

Representing the council’s biggest source of discretionary financial support, CTR is the way that local authorities help households on low incomes to pay their council tax bill.

Following the recent introduction of a fairer income banded CTR scheme, the council now recommends three further adjustments to ensure support is targeted to those most in need. 

Lead Member for Finance, Support Services and Regeneration, Jack Youd, said: “Council Tax Reduction is a vital component of the anti-poverty agenda and helps alleviate some of the biggest financial pressures, particularly for vulnerable households. We’re proud to have created a more equitable scheme which targets support to those most in need, in line with our priority to tackle poverty and inequality.

“Based on what we’ve learned from our new income banded scheme, we’ve identified three additional changes to better support the lowest income households in the city. We welcome feedback on these proposals to further improve the scheme’s equity and longevity whilst remaining cost neutral.”

Residents can have their say on making Salford’s CTR scheme even fairer by completing a short online survey before Thursday 1 January 2026. This feedback will assist the council in making decisions on any changes to the scheme before it’s implemented on 1 April 2026.

The council’s three proposed changes are:

• Removing Universal Credit Transitional Protection Payments (UCTPP) for assessment purposes. This will support claimants such as those who migrated to Universal Credit (UC) from legacy Employment and Support Allowance (ESA) who receive less support under UC than under ESA as the Severe Disability Premium part of the ESA has stopped. Although they are entitled to temporary UCTPP to prevent an immediate drop in income, many will experience significant income reduction over time as the UCTPP erodes.
• Disregarding 45% of state or occupational pensions, following feedback from the council’s Welfare Rights and Debt Advice service. When a working-age partner in a couple is unemployed due to caregiving responsibilities for a pension-age partner who receives disability benefits, they’re less likely to quality for CTR. Therefore, the council should consider the intersection of low income, disability, and caregiving responsibilities for mixed-age couples. Disregarding 45% of pension income will prevent them from being financially disadvantaged under the scheme. This approach aligns with the earnings disregard applied in UC and allows a portion of income, particularly relevant to housing costs, to be excluded from assessment.
• Retaining the Council Tax Reduction Transitional Protection Scheme. While it is anticipated that all legacy ESA benefit claims will transition to UC during 2025/26, a contingency non-UC scheme is necessary in case of delays or if some claimants do not complete the migration. This ensures continued support for individuals on low incomes who don’t receive income-related benefits. By the end of this financial year, the number of working-age, low-income households not yet on UC is expected to be minimal. Once these households are identified, the council’s BetterOff service will assist them in understanding any barriers to claiming and provide support in accessing benefits, skills and work services to help maximise their income.