Politics
Liverpool Council Expands Tax Relief for 42,000 Households Starting 2026
The July 7 vote expands eligibility for reduced council tax bills for an estimated 42,000 Liverpool households starting in the 2026-27 financial year.
How we reported this
Liverpool City Council voted 47 to 9 on July 7 to extend the Council Tax Reduction Scheme through March 2027, raising the income threshold for full relief from £18,200 to £19,600 for single residents and from £27,300 to £28,900 for couples with one child. The measure applies to properties in Bands A to C and is funded from the council's existing revenue support grant allocation.
Why the vote occurred now
The decision follows the release of the council's 2026-27 budget papers on June 28, which projected a £4.2 million shortfall in collection if the scheme lapsed. Council officers told the meeting that 3,800 additional households would qualify under the new limits, based on current housing benefit data held by the authority.
Residents in Anfield and Kensington wards stand to see the largest average reduction because those areas contain higher concentrations of Band A and B properties. A household previously paying £1,180 annually in Band A would now pay £730 after the relief is applied, with the difference covered by the scheme rather than added to other council services.
Local budget effects and next steps
The extension is projected to return £19.1 million directly to Liverpool households over the next 12 months, according to the scheme's financial model in the council's Medium Term Financial Strategy. Payments will be adjusted automatically for existing recipients from 1 April 2027, while new applicants must submit forms by 31 January 2027 to receive backdated credits.
Implementation will be handled by the council's revenues and benefits team, which will send revised bills by post in February 2027. Any surplus funds remaining after the scheme closes will be returned to the general fund for allocation in the 2027-28 budget round.