Low Income - Council Tax Reduction
Council Tax Reduction (CTR) is a scheme to help people on a low income pay their Council Tax Bill by reducing the amount they have to pay.
- Are you liable to pay a council tax bill?
- Are you on a low income?
- Do you have less than £6,000 in savings or less than £16,000 if you are a pensioner? This does not include those in receipt of Income Support, Job Seekers Allowance (Income Based), Employment Support Allowance (Income Related) and Pension Credit Guarantee.
If the answer to all of these questions is yes, you can apply for Council Tax Reduction.
Exceptional Hardship Fund
The Exceptional Hardship Fund offers short-term help to customers who get Council Tax Reduction but who are struggling to pay their Council Tax liability.
About the Council Tax Reduction Scheme (for working age customers only)
To read full details of our Council Tax Reduction scheme policy, please download a PDF copy here.
The income bands are set out as shown in this table:
Council Tax Reduction Level
|Weekly Income||Monthly Income||Weekly Income||Monthly Income||Weekly Income||Monthly Income||Weekly Income||Monthly Income|
*those in receipt of Income Support, Job Seekers Allowance (Income Based) and/or Employment Support Allowance (Income Related).
Key features of the banded scheme
- Anyone with savings in excess of £6,000 will not qualify. This does not include those in receipt of Income Support, Job Seekers Allowance Income Based and Employment Support Allowance Income Related).
- There will be no deductions made for any non-dependents living in the household.
- The Council Tax Reduction will be limited to a Band D charge, this means if you live in a band E, F, G or H the maximum award you can receive will be 85% of a band D charge in the parish you live in.
- There will be no applicable amounts, instead working-age people will receive a % discount on either 85%, 80%, 50% or 25%, depending on the level of their income and the income band they fall into.
- Net earned income will be used in your calculation (gross minus tax, national insurance contributions and 50% of any pension contribution)
- For those working over 16 hours we will make earnings disregards of £5.00 for single people, £10.00 for couples and £20.00 for lone parents, disabled and carers.
- A further £17.10 will be deducted for those working over 16 hours
- For those in employment the standard childcare cost will be applied, up to £175 for one child and £300 for two or more.
- Backdating will be limited to 6 months and assessed on whether there is good cause to do so.
Minimum Income Floor (MIF) will be applied to people that have been self-employed for more than 12 months and earning less than the National Minimum Wage. The MIF is an assumed level of earnings based on what an employed person would expect to receive in similar circumstances.
There are two minimum wage rates applied into the system and deductions have been made for Tax and NI
The rates applied are as follows:
- £215.60 applied to single claimants and claimants living as part of a couple.
- £123.20 applied to lone parents
- If both members of a couple are self-employed and they have dependants under 16, one member will have £215.60 applied and the other £123.20, otherwise £215.60 will be applied to both.
- If claimant/partner are also employed as well as self-employed the MIF rules will not apply.
For those in receipt of Universal credit the following will apply:
- Universal Credit (UC) - Where the UC payment is worked out based on wages, we will still take the wages into account minus the relevant earnings disregard.
- Deductions such as advance payments deducted from Universal Credit award will be added back and included as income.
- The housing element in your UC award will not be classed as income.