Salford City Council are proposing several changes to the Council Tax Reduction Scheme (CTRS) to support more households and stop low-income families from being “unintentionally” penalised by the benefits system.
The council are proposing that from April 2026, UC Transitional Protection Payments (UCTPP) should be disregarded in Council Tax Reduction assessments, as the UCTPP does erode over time, meaning significantly less council tax support.
The scheme uses income bands to ensure help is accurately “targeted” at those who cannot afford to pay, focusing on “income available for everyday living costs”.
In 2025, 12,885 people were automatically transferred onto a different Universal Credit (UC) scheme.
Under the new proposals, more would be done to ensure that residents are not penalised for the top-up payments they gained when shifting from old benefit systems to Universal Credit.
Salford Council also added that analysis of mixed-age couples, and those receiving occupational pensions, show reduced support under the current scheme.
Due to current state pension levels, it is reported that couples rarely qualify for Council Tax Reduction if the working-age partner can also work.
Therefore, the Council propose that 45% of pension income be disregarded, to help mitigate the loss of Universal Credit people experience under the current scheme.
The estimated cost for this is only around £65,000 for the 79 affected households, as they already receive support under the transitional protection scheme.
Another recommended proposal is retaining the transitional protection scheme, while all Employment & Support Allowance (ESA) claims are transitioning to Universal Credit, a non-UC contingency scheme will remain in place, ensuring continued support during delays and mitigations.
With the recent Government announcement removing the two-child benefit cap from April, “many households will continue to receive the same level of support”.
Currently, the CTR scheme costs £30.7 million a year, despite an increase of 1379 eligible households since April 2025, the cost remains “within the forecasted budget”.
The recommendations align with the proposed council tax increases for April 2026.
