Changes to Council Tax support Scheme from 1st April 2025 for working age citizens

After the recent consultation undertaken by Nottingham City Council the following changes to the current Council Tax Support scheme will take effect from April 2025 for working age Citizens only:

• The maximum level of Council Tax Support will be based on the liability of a band B property.
• The capital limit will reduce to £6000.
• The minimum weekly award will change to £5.00 a week.
• A minimum threshold of £5 in respect of in year changes to entitlement.
• A minimum income floor will be introduced for self-employed applicants.

Reduction of the maximum level of Council Tax Support to the liability of a band B property

Households in band C-H properties would have the maximum level of CTS calculated at the rate of a band B property. The maximum level of Council Tax Support is 80% of the Council Tax liability for a band B property.

Capital limit

The capital limit will reduce from £16,000 to £6,000. There will be no entitlement to Council Tax Support where capital exceeds £6,000.

Minimum Council Tax Support

No award will be made if the entitlement is less than £5.00 per week. This has changed from £0.50 per week.

Minimum threshold of £5.00 in respect of in year changes to entitlement

Under the previous Council Tax Scheme any changes to entitlement, no matter how small, result in a recalculation of the award and issuing of a new Council Tax bill with reset instalment plans.

The change from April 2025 introduces a threshold for changes in circumstance that create an alteration to the award of less than £5.00, either an increase or a decrease, will not change the level of award or change the amount of Council Tax due.

This change will not be considered until the following financial year, unless a further change or changes occur, in the current financial year, which have a combined total of £5.00 or more.

Self-employed minimum income floor

For citizens and/or partners who have self-employed income, a minimum income floor will be applied 1 year after they started self-employment. 

This is the lowest weekly amount it is expect that self-employed citizens will earn. This is the same calculation used by The DWP when accessing Universal Credit for the Self-employed workers. The minimum income used is the National Minimum Wage.