Who can apply for Council Tax Reduction?
You can apply for Council Tax Reduction if you are aged 18 or over and you own or rent your home and whether you're unemployed or working. Pension age scheme is defined by Central Government and can have up to £16,000 in capital.
New Council Tax Reduction Scheme - Working Age
Under the new scheme we will be looking at the household and the income of the applicant and any partner to determine the level of reduction. Some incomes are ignored such as Child Benefit, and all disability benefits.
During 2022 a 9 week consultation took place to review the Council Tax Reduction scheme. From 1st April 2023 key changes have been made. The maximum award for working age people is now 100% and we no longer take the Housing Element of the Universal Credit award into account when calculating the household income.
Key features of the new scheme
- Those who are in receipt of a ‘passported’ benefit (Job Seekers Allowance income based, Employment and Support Allowance income based or Income Support) and those in the lowest income band will now have the maximum 100% Council Tax Reduction
- Anyone with savings or capital over £6,000 will not qualify for Council Tax Reduction
- There will be no deductions for any non-dependants living in the property
- All households that have earned income will have £25 disregarded off the weekly net income
- A £50 per week disregard will be awarded if someone in the household (claimant, partner or dependent child) gets DLA or PIP (one per household).
- Income from Disability Living Allowance, Personal Independence Payments, Armed Forces Independence Payments, Child Benefit, Child Maintenance, War Disablement Benefit, War Widow/er Pension, Carers Allowance and the Support Component of Employment and Support Allowance will be disregarded in full as income
- The four week extended payment period (EPP) will no longer exist.
- All changes in circumstances which affect entitlement to Council Tax Reduction will take effect from the date they occur, rather than the Monday following.
- There will be no backdating limit as long as ‘good cause’ can be shown.
- Housing Element of Universal Credit will be disregarded
Income Grid for CTR Scheme from 1st April 2024:
CTR discount |
Passported benefit in payment (IS/JSAI/ESAI) |
Single person with weekly income of |
Couple with weekly income of |
Family (single or couple) with 1 child weekly income |
Family (single or couple) with 2 + children weekly income |
---|---|---|---|---|---|
100% |
Yes |
£0 - £88.91 |
£0 - £135.98 |
£0 - £219.66 |
£0 - £282.42 |
65% |
N/A |
£88.92 - £135.98 |
£135.99 - £177.82 |
£219.67 - £271.96 |
£282.43 - £334.72 |
45% |
N/A |
£135.99 - £188.28 |
£177.83 - £230.12 |
£271.97 - £324.26 |
£334.73 - £387.02 |
25% |
N/A |
£188.29 - £240.58 |
£230.13 - £282.42 |
£324.27 - £376.56 |
£387.03 - £439.32 |
Prior to 1st April 2024 our Income Grid was:
CTR discount |
Passported benefit in payment (IS/JSAI/ESAI) |
Single person with weekly income of |
Couple with weekly income of |
Family (single or couple) with 1 child weekly income |
Family (single or couple) with 2 + children weekly income |
---|---|---|---|---|---|
100% |
Yes |
£0 - £85 |
£0 - £130 |
£0 - £210 |
£0 - £270 |
65% |
N/A |
£85.01 - £130.00 |
£130.01 - £170 |
£210.01 - £260 |
£270.01 - £320 |
45% |
N/A |
£130.01 - £180 |
£170.01 - £220 |
£260.01 - £310 |
£320.01 - £370 |
25% |
N/A |
£180.01 - £230 |
£220.01 - £270 |
£310.01 - £360 |
£370.01 - £420 |
Key features of the previous scheme prior to 1st April 2023
- Those who are in receipt of a ‘passported’ benefit (Job Seekers Allowance income based, Employment and Support Allowance income based or Income Support) and those in the lowest income band will now have the maximum 85% Council Tax Reduction
- Anyone with savings or capital over £6,000 will not qualify for Council Tax Reduction
- There will be no deductions for any non-dependants living in the property
- All households that have earned income will have £25 disregarded off the weekly net income
- A £50 per week disregard will be awarded if someone in the household (claimant, partner or dependent child) gets DLA or PIP .
- Income from Disability Living Allowance, Personal Independence Payments, Armed Forces Independence Payments, Child Benefit, Child Maintenance, War Disablement Benefit, War Widow/er Pension, Carers Allowance and the Support Component of Employment and Support Allowance will be disregarded in full as income
- The four week extended payment period (EPP) will no longer exist.
- All changes in circumstances which affect entitlement to Council Tax Reduction will take effect from the date they occur, rather than the Monday following.
- There will be no backdating limit as long as ‘good cause’ can be shown.
There may be other Council Tax exemptions and discounts that you may be eligible to apply for.