The government has signed off technical changes to England’s council tax reduction framework for pension-age claimants. The Council Tax Reduction Schemes (Prescribed Requirements) (England) (Amendment) Regulations 2026 (SI 2026/27) were made on 13 January 2026, laid on 15 January 2026, and take effect on 13 February 2026. They apply to billing authorities’ schemes for financial years beginning on or after 1 April 2026.
The instrument updates the 2012 Prescribed Requirements Regulations that set mandatory pension‑age rules within local authority schemes. It is made under section 113 and Schedule 1A of the Local Government Finance Act 1992, alongside the duty in section 13A for each English billing authority to maintain a council tax reduction scheme. These amendments therefore feed directly into Local Council Tax Support for 2026/27 and must be reflected in published schemes. ([legislation.gov.uk](https://www.legislation.gov.uk/uksi/2012/2885?utm_source=openai))
Residence rules are tightened with targeted exemptions. People present in Great Britain after the government has issued public information advising British nationals to leave a country, or has organised an evacuation, will not be treated as “not in Great Britain” for up to six months, provided they have a right of abode, no requirement for leave, or have leave to enter or remain (including outside the Rules). The exemption also applies to those admitted through a safe and legal humanitarian route with leave.
A further exemption is created for claimants in receipt of Universal Credit, who are now expressly excluded from being treated as “not in Great Britain” for council tax reduction purposes. The immigration statuses referenced align with the Immigration Act 1971 framework on leave and right of abode, including circumstances where individuals do not require leave. ([legislation.gov.uk](https://www.legislation.gov.uk/ukpga/1971/77/section/3ZA?utm_source=openai))
For pensioners who were overseas when the government issued advice to leave or organised evacuation, temporary absence rules are adjusted. Where the authority deems it unreasonable to expect a return sooner, up to 26 weeks’ absence from Great Britain is treated as temporary, maintaining entitlement during that period. The general cap on temporary absence is confirmed at 26 weeks, unless specific existing exceptions apply.
Two new categories of payments are defined and disregarded in income and capital calculations: payments made under the Ministry of Defence’s LGBT Financial Recognition Scheme, and compensation for miscarriages of justice (including payments under section 133 of the Criminal Justice Act 1988 and equivalent payments in Scotland and Northern Ireland). The LGBT scheme has already been recognised elsewhere in the statute book for tax and social security treatment. ([legislation.gov.uk](https://www.legislation.gov.uk/uksi/2025/12/made?utm_source=openai))
The regulations also integrate Scottish Adult Disability Living Allowance (SADLA) into the England scheme where relevant, covering transitions and periods when entitlement is suspended due to hospital admission under regulation 23 of the Scottish rules. SADLA now counts for the same disability‑related disregards and premiums as its UK counterparts, ensuring continuity for people moving from Scotland. ([legislation.gov.uk](https://www.legislation.gov.uk/ssi/2025/3?utm_source=openai))
Non‑dependant deductions and related income bands for pension‑age cases are uprated. Weekly deductions rise from £15.35 to £15.95 and from £5.00 to £5.20. Income thresholds for higher deductions increase (for example, £266.00 to £279.00; £463.00 to £485.00; with associated deduction amounts moving to £10.60 and £13.30). These changes will slightly reduce awards in households with non‑dependant adults who are not disregarded.
Applicable amounts used to assess need are increased. Personal allowances rise across categories (for example, single pensioner from £244.40 to £256.00; couple from £366.00 to £383.35). Child and young person amounts increase from £84.66 to £87.88, and the family premium moves from £19.48 to £20.22. Premium rates are uprated, including the severe disability premium and disability‑related amounts, to maintain alignment with wider social security uprating.
Other upratings include the income disregard in Schedule 5 moving from £72.90 to £75.65, and revised bands for the alternative maximum council tax reduction, with thresholds such as £276.00 rising to £289.00 and £358.00 to £375.00. Together, these incremental adjustments preserve the structure of the means test while updating cash values for 2026/27.
Billing authorities should update scheme documentation, parameters and software ahead of 1 April 2026, and brief assessment teams on the new residence exemptions and the expanded lists of income and capital disregards. Authorities should also review standard letters to explain the 26‑week temporary absence provision for those affected by government evacuation advice and to signpost applicants receiving Universal Credit or covered payments.
For households, the effect depends on circumstances. Pension‑age applicants with low income may see entitlement maintained or slightly improved through higher applicable amounts, while those with non‑dependant adults may see modestly larger deductions. People arriving from evacuation or humanitarian routes, and Universal Credit recipients, should no longer be excluded by habitual residence rules if the new conditions are met. The disregards for LGBT recognition payments, miscarriage‑of‑justice compensation and SADLA ensure these awards do not reduce council tax support.