Localised Council Tax Reduction replaced Council Tax Benefit in April 2013. Since then every local authority has had to put in place its own local scheme and has to review the scheme each year.
From the 1st April 2019 Council Tax Reduction is based on a banded scheme. This means that depending on your income your household you will fall into a band that will mean that your Council Tax Reduction will be either 80%, 60%, 40%, 20% or 0% of your Council Tax. The details below summarize the changes to the scheme.
Council Tax Reduction based on a banded scheme figure applicable from 1.4.2022
|| % discount
|| Family +2
|| £0 – £90.23
|| £0 – £133.25
|| £0 – £186.77
|| £0 – £239.23
|| £90.24 -£143.74
|| £133.26 –£186.77
|| £186.78 –£239.23
|| £239.24 –£292.74
|| £143.75- £197.26
|| £186.78 – £239.23
|| £239.24 -£292.74
|| £292.75 – £346.26
|| £197.27- £251.82
|| £239.24 – £282.25
|| £292.75- £346.26
|| £346.27 – £399.77
The following amounts will be deducted from income to obtain the net amount that will be used in the calculation
- Earnings disregard £25.00
- Disabled Living allowance
- Personal independence payments
- Employment and support – support component or LCWRA element if you get Universal credit
- Disability premium
- Enhanced disability premium
- Severe Disability premium
- Disabled child premium
- Carers allowance or Carers Element if you get Universal credit
- Child Benefit
- Child maintenance
- Childcare costs (conditions apply)
- War Pensions
There will be no deductions for any non dependant living at the property with you.
If you are claiming Universal credit we will take into account the Standard element, the Child element and the LCW element. We will also take into account any unearned and earned income Universal Credit tell us about. We will deduct £25.00 from the earnings.
As we will not take into account the Carer element and Childcare element we will not disregard Childcare costs of Carers allowance.
A minimum income level for people who are self-employed.
If you are self-employed, and have been trading for a year or more, we will assume you can work 35 hours and multiply this by the national living wage. If you are a lone parent we will assume 16 hours at the national living wage.
A maximum capital limit of £6000.
If you or your partner, together or separately, have capital, savings and investments which add up to more than £6000 you will not be entitled to any support from the scheme. You will have to pay the full amount of Council Tax for your property.