Politics
Liverpool City Council Cuts Council Tax for Low-Income Households April 2026
The changes will lower annual payments for qualifying low-income households across Liverpool starting in April 2026.
How we reported this
Liverpool City Council approved revisions to its Council Tax Reduction Scheme on 25 June 2026. The updates raise the maximum discount rate for the lowest income band from 80 per cent to 85 per cent. Eligible residents will receive the new rates on bills issued for the 2026-27 financial year.
National support programmes for household energy and food costs have ended their main phase this spring. Liverpool officials incorporated fresh income thresholds drawn from Department for Work and Pensions records when setting the new local criteria. The adjustments apply to properties in wards including Everton, Kensington and Walton.
Changes to Annual Household Payments
A household in band A property with income below £14,500 a year will see its council tax contribution fall by £192 compared with the current scheme. Single occupants on universal credit in band B homes receive an additional £48 reduction. These amounts cover the full 12-month period and appear directly on the April 2026 demand notice.
Council budget papers published in June list 48,000 households expected to qualify under the revised rules. The total value of extra discounts reaches £4.2 million and forms part of the authority's £312 million net revenue budget for 2026-27. The figure is offset by a £2.8 million grant from central government.
Application Process and Future Reviews
Residents can submit updated income details through the council website from 1 August 2026. Staff at Liverpool One Stop Shops in the city centre and at Belle Vale will assist those without internet access. Awards will be backdated to April where claims arrive before the end of September.
Policy analysts note that the scheme sits alongside separate energy efficiency grants administered by the Liverpool City Region Combined Authority. Those grants target postcodes L1 to L36 and provide one-off credits of up to £350 for qualifying addresses. The council will publish an evaluation report on the tax reduction changes in March 2027.