England council tax reduction rules update 13 Feb 2026

New rules for Council Tax Reduction in England have been signed and scheduled. The Council Tax Reduction Schemes (Prescribed Requirements) (England) (Amendment) Regulations 2026 were made on 13 January 2026, laid before Parliament on 15 January and come into force on 13 February. Councils will apply them to their local schemes for the financial year starting 1 April 2026.

If you claim council tax support, teach citizenship or advise households, the headline is simple: allowances rise slightly; more people are protected from the habitual residence test in emergencies or on Universal Credit; and certain compensation or recognition payments will no longer reduce your entitlement. The statutory instrument is published on legislation.gov.uk.

Who this applies to: people living in England. Billing authorities-district, borough and unitary councils-must build these requirements into their 2026/27 Council Tax Reduction schemes. Wales operates its own system, so these changes are for England only.

Two new payments are now ignored in the means test. Payments under the Lesbian, Gay, Bisexual and Transgender Financial Recognition Scheme (administered under the authority of the Secretary of State for Defence) and compensation for a miscarriage of justice or for being wrongfully charged will be disregarded as income and capital for Council Tax Reduction. What this means: receiving these payments will not reduce your award and will not trigger extra non-dependant deductions.

Scottish Adult Disability Living Allowance (SADLA) is recognised for people moving from Scotland to England during transition. In several parts of the rules the SADLA care component is treated like Disability Living Allowance, and if it stops only because of a hospital admission you can still be treated as if you receive it for these calculations. What this means: SADLA can help confirm disability entitlement and is disregarded in specified places, including childcare and earnings rules.

People fleeing a crisis are protected. If you were living in a country where the UK Government advised British nationals to leave or arranged an evacuation, and you have the right to be in the UK, you will not be blocked by the habitual residence test. This exemption lasts for six months from the date the advice was issued or the evacuation began.

There is also clarity for humanitarian arrivals and for those on Universal Credit. People who come via a safe and legal humanitarian route, and people in receipt of Universal Credit, are added to the list of exceptions so they are not treated as being outside Great Britain for Council Tax Reduction purposes.

Temporary absence rules are tightened and clarified. Where someone was abroad in a country later subject to leave-or-evacuate advice and it would be unreasonable to expect them to return immediately, up to 26 weeks can be treated as a temporary absence. More generally, except where specific exceptions apply, the total time that can be treated as temporary absence will not exceed 26 weeks.

Non-dependant deductions change slightly. These are the amounts taken off your maximum reduction to reflect other adult household members. The standard weekly deductions move from £15.35 to £15.95 and from £5.00 to £5.20. Income bands used to set higher deductions rise, with thresholds moving to £279 and £485 per week, and the linked deduction amounts rising to £10.60 and £13.30. What this means: if another adult lives with you, the deduction from your support may change by small amounts.

Allowances and premiums are uprated in line with wider benefit changes. Examples include a main adult personal allowance rising from £244.40 to £256.00 per week, a couple allowance rising from £366.00 to £383.35, and the additional adult element from £121.60 to £127.35. The child amount goes from £84.66 to £87.88, and the family premium from £19.48 to £20.22.

Disability-related premiums also increase. The regulations set weekly figures now at £86.05 and £172.10 in core disability premiums (depending on household), £33.99 for one enhanced element, £84.46 for a specified disability element, and £48.15 for a carer-related premium. Councils will use these when comparing your income against your applicable amount.

Alternative maximum Council Tax Reduction-often called the second adult rebate-is updated. The income bands used to calculate it increase, with thresholds such as £289 and £375 per week now in force, which may modestly change awards for households sharing with other adults.

There is a small uplift to income disregards. One standard amount of income other than earnings that can be ignored rises from £72.90 to £75.65 per week. The rules also add Scottish Adult Disability Living Allowance to the list of sums disregarded from earnings in relevant cases.

What to do now: if you already claim, your council should apply the new figures automatically from 13 February 2026 and in your 2026/27 calculation. If you are a new claimant-especially if you recently left a country following UK Government advice or you are on Universal Credit-explain this in your application and keep evidence.

Dates to teach and remember: made on 13 January 2026; laid on 15 January 2026; in force from 13 February 2026; and applying to schemes for the year that starts on 1 April 2026. The instrument is signed by Alison McGovern, Minister of State at the Ministry of Housing, Communities and Local Government, and says no impact assessment was produced, as no effect on the private or voluntary sectors is expected.