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
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
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.
Income Band £
Income Band £
Family with 1
Family with 2+
|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|
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
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
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:
|% 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.
- Council Tax Reduction Scheme 2019/20
- Council Tax Reduction Scheme summary 2018/19
- Council Tax Reduction Scheme 2018/19
- Council Tax Reduction Schemes (Amendment) Regulations 2017 SI No 1305
- Council Tax Reduction Schemes (Amendment) Regulations 2015 SI No 2041
- Council Tax Reduction Explanatory memorandum 2015 No 2041
Pages in this area
- Council Tax Reduction Scheme for 2020/21
- Change in circumstances
- Council Tax Reduction Scheme for 2019/2020
- Council Tax Reduction Scheme for 2018/2019
- Council Tax Reduction Scheme for 2017/2018
- Council Tax Reduction Scheme for 2016/2017
- Council Tax Reduction Scheme for 2015/2016
- Council Tax Reduction Scheme for 2014/2015