Council Tax reduction

Council Tax Support


From April 2013, each local authority is allocated a set amount of money to administer and fund it's Council Tax Support scheme.

Anyone who has less than £16,000 capital can claim support as long as they have a liability to pay Council Tax.

We take the income of a claimant and any partner. We disregard some amounts like child benefit, Disability Living Allowance and any child care (up to £175 for 1 child and £300 for 2 or more children).

We convert all the income into a weekly figure and compare that to a needs allowance (Applicable Amount). Anything left is excess income and is multiplied by 20%. This is called a taper. We reduce the council tax payable by the difference between the taper and the weekly Council Tax. Finally, we take off any non-dependant deductions.

Make an application for Council Tax Support  - to start a claim click on the green button marked start new claim.

Following consultation Councillors agreed the following changes for people of working age:

  • No backdating. Entitlement will begin from the Monday after the claim is completed and submitted.
  • No second adult rebate. Rebate can no longer be based on the income of a non dependant
  • No claims from full time students. Part time students maybe entitled based on their income
  • Maximum eligible Council Tax 80%. Everyone will have to pay at least 20% of their council tax each week. Band A - D will only be entitled to 80% of that years council tax
  • Restriction to Band D. Most working age people in a Band E, F, G or H will only receive a maximum of 80% of the equivalent Band D for their parish.
  • Vulnerable customers. If a claimant or their partner or child is entitled to Attendance Allowance, Carers Allowance, Disability Living Allowance, Employment Support Allowance Support Component, Long Term Incapacity Benefit, Industrial Injuries Disablement Benefit, Personal Independence Payment, Severe Disablement Allowance, the disability element in Working Tax Credit or a lone parent with a child under 5 will be in the protected group.
  • Maximum eligible Council Tax 90%. For working age customers in the vulnerable group will have to pay at least 10% of their council tax each week. Band A - D will be entitled to 90% of that years council tax.
  • Restriction to Band D. For working age customers in the vulnerable people in a Band E, F, G or H will receive a maximum of 90% of the equivalent Band D for their parish.
  • Lower capital limit increased to £10,000. The first £10,000 is disregarded. For every £250 or part of £250, £1 tariff income is added to the income. The proposal is to disregard the first £10,000 and only add £1 tariff income for every £250 between £10,000 and £16,000.
  • Flat £5 rate for all non dependant deductions. A non dependant is someone who normally lives with the claimant on a non commercial basis such as an adult son, daughter, relative or friend. People who are boarders, sub-tenants and joint tenants are not non-dependants. Housing Benefit and CTR is reduced for each non-dependant living in the home. The gross income of the non-dependant is taken into account and a set amount is taken off the entitlement to represent the amount they are contributing to the household costs. For non-dependant couples, the income of both members of the couple are added together to find the gross income figure.

Some claimants are exempt from non-dependant deductions if they or their partner are entitled to Attendance Allowance, Disability Living Allowance (care) or Personal Independence Payment care element or they are registered blind.

  • Income disregards. Student loans, maintenance, charitable or voluntary payments and widowed parents allowance will no longer be disregarded, and instead will be taken into account in full in the calculation of entitlement.
  • Earnings disregard. After tax, NI and half of any pension contribution 25% of the remaining earnings will be disregarded. This means most customers will be better off if they start work or increase their income because they will be able to keep 25% of that income before it takes effect on the council tax support amount they receive.
  • All overpayments are recoverable
  • £50,000 Discretionary Fund created
  • Appeals for Working and Pension Age claimants will be dealt with by the independent Valuation Tribunal for England.