Council Tax - Council Tax Reduction Scheme

The Government has announced that working age people receiving council tax reduction will receive hardship up to £150.00 towards their council tax bill. If you are already in receipt of council tax reduction you do not need to do anything, we will deduct this automatically from your council tax bill.  If you have already made a payment which means you are entitled to a refund there will be instructions with your new bill which you will receive soon on how to do this. If you are not in receipt of council tax reduction and your circumstances have changed due to the COVID-19 please apply on the link
 

Apply for Council Tax Reduction

 

What is Council Tax Reduction?

Council Tax Reduction is a council tax discount for working age people. It reduces the amount of council tax you must pay. The size of the discount you get depends on your income and household size.

There is a different national Council Tax Reduction scheme for people who have reached the qualifying age for Pension Credit or the State Retirement Pension. This scheme is a means tested scheme based on your income, savings or investments.

You may be eligible for Council Tax Reduction if you:

•           live in the UK

•           pay council tax

•           are on a low income

•           have savings less than £6000 if you are working age or less than £16000 if you have reached the qualifying age for Pension Credit or the State Retirement Pension 

 

Apply for Council Tax Reduction

 

 

 Universal Credit

If you make a claim for Universal Credit and tell the DWP that you pay council tax they will send us details of your Universal Credit payments and your wages if you are working from an employer. We will use this information to work out the Council Tax Reduction entitlement.

To apply for Universal Credit: go to  https://www.gov.uk/universal-credit

 

How is Council Tax Reduction Calculated?

The table below shows the maximum discount available to those people who are working age.

Discount Passported

Single

Income Band £

Couples

Income Band £

Family with 1

child £

Family with 2+

Children

Band 1   90% Relevant benefit 0.00 to 120.00 0.00 to 165.00 0.00 to 215.00 0.00 to 270.00
Band 2   85% N/A 120.01 to 160.00 165.01 to 205.00 215.01 to 260.00 270.01 to 310.00
Band 3   50% N/A 160.01 to 240.00 205.01 to 280.00 260.01 to 340.00 310.01 to 380.00
Band 4   25% N/A 240.01 to 310.00 280.01 to 360.00 340.01 to 415.00 380.01 to 465.00

 

Disregarded income

When we work out entitlement to Council Tax Reduction, we do not take the following income into account

  • Disability Living Allowance

  • Personal Independence Payment

  • Armed Forces Independence Payment

  • Child Benefit

  • Child Maintenance

  • War Disablement Benefits.

  • We also apply an earnings disregard of £7.50 for single people, £12.50 for couples and £27.50 for lone parents

 

Self Employed

If you are self-employed the assessment calculation will be, the assessment of self-employed income by the number of hours worked multiplied by the National Minimum Wage. To minimise the impact on our residents, this will be phased in and use a percentage of the National Minimum Wage over four years as follows:

Year 2020/21 2021/22 2022/23 2023/24
% of National Living Wage Used 70% 80% 90% 100%

 

Other People who live with you

If you have other adults who are 18 or over who live with you, we make a non-dependant charge of £2.50 rising to £3.00 on 1 April 2020 for each adult. These charges relate to our working age scheme. There are different charges for the national pensioner Council Tax Reduction scheme.

You can see full details of the scheme at Council Tax Reduction banded scheme or you can see a summary of the scheme

 

Apply for Council Tax Reduction

Further information

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