Bristol City Council will continue to offer one of the UK’s few remaining fully funded Council Tax Reduction schemes, safeguarding up to 100 per cent support for around 21,000 low-income households.
Councillors approved the continuation of the scheme into the 2026/27 financial year, extending a commitment that has remained in place since 2013. The decision ensures that some of the city’s most financially vulnerable residents will remain protected from rising living costs.
The CTR scheme currently delivers more than £46 million in annual support, benefiting both working-age residents and pensioners. Despite a projected increase in overall costs for the coming year, the council has pledged to maintain full funding.
In a move designed to improve financial stability for recipients, councillors also approved a targeted adjustment to how support is calculated for those receiving Universal Credit.
Under the new system, small income fluctuations – approximately £15 per week or £65 per month – will no longer trigger automatic reassessments or revised council tax bills. This “income tolerance” aims to eliminate frequent recalculations that have historically created confusion and uncertainty for residents managing tight budgets.
The reform is expected to significantly cut administrative workload within the council. By reducing the number of reassessments and reissued bills, resources can be redirected toward more complex cases and broader support services.
Bristol City Council Leader Cllr Tony Dyer said:
“The support this scheme provides is vital for those households who need extra help. Through careful financial planning and sticking to our values of supporting those who need it most, I’m delighted we’re able to continue a full commitment for yet another year. I also welcome the work of officers to identify the adjustment to the scheme that means households with variable earnings, such as those on shift patterns or irregular hours, can expect much‑needed stability. Bills will no longer shift unexpectedly due to minor income variations, giving residents more certainty and helping them better manage their finances throughout the year.”
The decision underscores Bristol City Council’s ongoing commitment to supporting low-income households, even as local authorities across the UK face sustained financial strain.
By maintaining one of the most generous CTR schemes in the country, Bristol continues to position itself as a leader in local welfare support—prioritising stability, fairness, and protection for residents most affected by the cost of living crisis.
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