What is the Council Tax Reduction Scheme?
Our Council Tax Reduction scheme is designed to support those on a low income to help pay their Council Tax. Your income, savings and personal circumstances affect how much Council Tax Reduction you can claim.
Council Tax Reduction Regulations
Apply for Council Tax Reduction
- People who have reached State Pension Age
-
If you are not currently in receipt of Council Tax Reduction and you and your partner, if you have one, are over state pension age, on a low income and do not have savings over £16,000 you can apply for support through this scheme.
This is a national scheme and the eligibility criteria for it is set by Central Government. If you are eligible, you may receive support up to the full amount of your council tax charges for each day you are eligible. Working age – income banded scheme for households receiving Universal Credit
- Working age – income banded scheme for households receiving Universal Credit
-
If you, and your partner if you have one, are of working age, on a low income and receiving Universal Credit you may be eligible under this scheme.
We will use the information provided to us by the Department for Work and Pensions (DWP) to work out how much reduction you are eligible for.
This is an income banded scheme so small changes in your income won’t always mean a change in the amount of Council Tax Reduction you receive.
There are different income bands for each size of family, to take into account the amounts of Universal Credit that different sizes of family receive.
We work out your income as shown below. We use the income details from your Universal Credit calculation.
Step 1
We take your Universal Credit award (including any Universal Credit that is used for rent payments direct to your landlord, or amounts deducted to pay for utility arrears, overpayments, advances, etc).
Step 2
From the figure in Step 1, we deduct the amounts of the following Universal Credit elements from your Universal Credit award:
- Housing Element
- Limited Capability for Work Element
- Disabled Child Element
- Childcare Element
- Carer Element
If these elements add-up to more than your Universal Credit award, we will treat your Universal Credit as zero.
Step 3
We add the following to the figure calculated in Step 2:
- If you are working, your earnings (according to your Universal Credit calculation - after tax and national insurance have been deducted)
- The amount of any tariff income from your savings, according to your Universal Credit calculation.
- All other income is ignored
The resulting income will be converted to a weekly figure, then used to decide your reduction.
TABLES
Other adults living with you
If any other adults live with you, and your partner if you have one, the amount of Council Tax Reduction you receive may be reduced by a non-dependant deduction.
A non-dependent deduction is a fixed, weekly amount taken from your Council Tax Reduction for every adult (18 or over) living with you. The non-dependent deduction is based on the non-dependant's gross weekly income.
In the following circumstances we will not make a non-dependant deduction:
If you and your partner if you have one are blind or receive the care component of Disability Living Allowance (DLA) or Attendance Allowance (AA), Daily Living Component of Personal Independence Payments (PIP) or Armed Forces Independence Payments (AFIP)
We will not make a non-dependent deduction if the other adult:
- is under 18 years old.
- is a full-time student.
- has been in hospital or a care home for 52 weeks or more.
- is a prisoner.
- receives certain benefits, such as Pension Credit, Income Support, income-based Jobseeker’s Allowance, or income-related Employment and Support Allowance (if in the assessment phase).
- receives Universal Credit but has no earned income.
- Working age – scheme for households not receiving Universal Credit
-
If you are of working age, on a low income and do not have savings over £16,000 you can apply for this scheme.
Use our Benefit calculator to find out if you could be eligible, and what other benefits you may be entitled to. The calculator is quick, easy and free to use and the details you provide are anonymous.
- Alternative Maximum Council Tax Support
-
If your income or savings are too high to qualify for Council Tax Reduction, you might still be able to get help if you share your home with one or more other people who are on a low income. If you live with someone over 18 who is:
- not paying you rent
- not liable to pay Council Tax
- not your partner
- and on a low income, you might qualify for alternative Council Tax reduction based on their income.