Council Tax reduction
Council Tax Reduction
Council Tax Reduction Scheme
Council Tax Reduction gives you a reduction on your Council tax bill if you are on a low income. You can apply whether you're unemployed, retired or working.
An application does not mean you will automatically qualify for assistance so you must continue to pay your council tax as advised by your bill. Any entitlement to council tax reduction will be credited to your council tax account, and you will receive an adjusted bill showing the revised balance.
Am I eligible to claim
The government tells us how we must work out Council Tax Reduction for applicants of pensionable age which are different to the rules for working age applicants.
Working age customer
To be entitled you must:
- be of working age (below state pension age)
- be liable to pay Council Tax for your property
- be living in the property as your main home
- have less than £6,000 in savings
Pension age customer
To be entitled you must:
- be eligible to claim State Retirement Pension
- be liable to pay Council Tax for your property
- be living in the property as your main home
- have less than £16,000 in savings
Second Adult Rebate
Second Adult Rebate is a reduction in Council Tax if you are of pension age and share your home with one or more other adults (not including your partner) who are on a low income. When you apply, we will automatically work out which will give you the biggest reduction.
Joint tenants
Where you share your tenancy with other people (who are not your partner) you will each need to make an application for Council Tax Reduction.
How much will I get?
You can get help with up to 100% of your Council Tax bill. How much you get depends on:
- your age
- your (and any partner's) income and savings
- who lives in your household
- how much Council Tax you pay
- Your circumstances for example if someone has a disability
Maximum and minimum amounts of Council Tax for people of working age
Everyone of working age who is in receipt of Income Support, Job Seekers (income based) or Employment Support Allowance (income related) will receive 100% of their net liability.
Anyone of working age with capital above £6,000 will not qualify.
There is no minimum amount payable.
Maximum and minimum amounts of Council Tax for people of pension age
Everyone over state pension age who receives the Guarantee Credit part of Pension Credit will receive 100% of their net liability. If you don’t get Guarantee Credit but you have a low income and less than £16,000 in savings, you may still get some help.
Anyone of pension age with capital above £16,000 will not qualify.
There is no minimum amount payable.
Use our benefit calculator to find out what you can claim:
The working age scheme summary
Income bands will allow people to vary their hours at work without losing support. Applicants will have more certainty about how much council tax they need to pay and receive fewer council tax bills when income fluctuates within the same band.
An income band system gives households a percentage reduction on their council tax.
Household - The level of discount will be based on a comparison of household size and weekly income of you and your partner (if you have one). Where a household includes more than 2 children the income bands do not increase.
Non-dependants - Any non-dependants in the household are ignored for the purposes of this scheme.
Maximum Support – up to 100% of council tax payable. Everyone of working age who is in receipt of Income Support, Job Seekers (income based) or Employment Support Allowance (income related) will receive 100% of their net liability.
Capital -Anyone of working age with capital above £6,000 will not qualify.
Earnings – Net earnings are used in the assessment. Net earned income is derived from the gross wage less tax, national insurance and 50% of any pension contributions.
Self employment - If you are self employed net profit of the business will be considered and no minimum income floor will be applied.
Disregarded income - We will disregard income from Attendance Allowance, Disability Living Allowance, Personal Independent payments, Carers Allowance and Employment Support Allowance (Support Component) child benefit, child maintenance.
Income disregards – we will apply
- an earnings disregard of £50 per week for couples/ lone parents and £25 per week for single people person if you are working.
- a disability income disregard of £40 per week, per claim, where the claim includes a disability benefit
- Universal Credit Housing element - the amount of Universal Credit which covers housing costs is fully disregarded
Working Age Scheme
If you have capital of less than £6,000 and are on a low income you could receive help with your Council Tax bill. The income band system gives people applying for council tax reduction a percentage reduction on their council tax. The maximum discount is 90%. All working age people will have a minimum of 10% of their Council Tax bill to pay.
It is based on the household size and income of the applicant and any partner. Any non-dependants in the household are ignored for the purposes of this scheme.
Income bands will allow people to vary their hours at work without losing support. Applicants will have more certainty about how much council tax they need to pay and receive fewer council tax bills when income fluctuates within the same band.
The table below shows the amount of discount that will be applied to your Council tax account.
100% discount
- Applicants in receipt of Income Based Jobseeker Allowance, Income Related Employment Support Allowance, Income Support
- Single person, weekly income under £133.00
- Couple, weekly income under £184.00
- Family with 1 child, weekly income under £242.00
- Family with 2+ children, weekly income under £299
75% discount
- Single person, weekly income between £133.01 to £177.00
- Couple, weekly income between £184.01 to £229.00
- Family with 1 child, weekly income between £242.01 to £288.00
- Family with 2+ children, weekly income between £299.01 to £344.00
50% discount
- Single person, weekly income between £177.01 to £232.00
- Couple, weekly income between £229.01 to £288.00
- Family with 1 child, weekly income between £288.01 to £333.00
- Family with 2+ children, weekly income between £344.01 to £390.00
25% discount
- Single person, weekly income between £232.01 to £292.00
- Couple, weekly income between £288.01 to £344.00
- Family with 1 child, weekly income between £333.01 to £390.00
- Family with 2+ children, weekly income between £390.01 to £436.00
0% discount
- Single person, weekly income over £292.01
- Couple, weekly income over £344.01
- Family with 1 child, weekly income over £390.01
- Family with 2+ children, weekly income over £436.01
Make a new Council Tax reduction claim
If you are in receipt of Universal Credit and you have advised the Department for Work and Pensions that you wish to claim help with your council tax your details will be provided to the council direct.
If you are not in receipt of Universal Credit or you did not advise the Department for Work and Pensions you will need to complete the online application form below
Make a new Council Tax reduction claim here »
Your Council Tax bill will tell you the date from which any entitlement starts.
It takes on average 20 days to process a new council tax reduction claim. Claims can be processed quicker if the required evidence is supplied as soon as possible.
You must keep paying your council tax as billed, even if you have applied for council tax reduction. Any entitlement to council tax reduction will be credited to your council tax account, and you will receive an adjusted bill showing the revised balance.
Report a change of circumstances
If you are receiving Council Tax reduction, you are required by law to inform us of any change to your circumstances or address. Find out what this could mean for you here:
Report a change in circumstances here »
Council Tax Reduction Scheme
The full breakdown of the Council Tax Reduction Scheme for the current year can be downloaded here:
Backdating Council Tax Reduction
Any entitlement is calculated daily so entitlement will start from the day a claim is made. Changes in circumstances will be effective from the date of change. If you wish to apply for an earlier period, your claim may be backdated. There are different rules for the different schemes.
Backdating for working aged people
Council Tax Reduction can be backdated for up to 12 months from the date of request. You will need to tell us the period you want your claim backdated for and tell us why you could not make a claim earlier.
Where the backdating period starts before the 1st April 2023 any award will be assessed based on the scheme rules in place for that period.
Backdating Council Tax Support for people of pension age
We will automatically look at your circumstances for the 3 months before the date you apply for Council Tax Reduction. We will then backdate your claim for up to 3 months if you meet the qualifying criteria.
How to claim Council Tax Reduction
Universal Credit and Council Tax Reduction
If you are in receipt of Universal Credit and you have advised the Department for Work and Pensions that you wish to claim help with your council tax your details will be provided to the council directly.
If you are not in receipt of Universal Credit or you did not advise the Department for Work and Pensions that you wished to claim Council Tax Reduction you will need to complete the online application form.
Make a new Council Tax reduction claim here »
What happens next?
We will consider your application. If you are successful, we will credit your account with any award and send you a revised bill.
If you do not agree with the decision, you can write to us to:
- ask us to explain our decision
- ask us to look at the decision again
You need to give us as much information as possible to explain why you are not happy with the decision, for example if you think we made a mistake with your income, savings, people included or the date your Council Tax Reduction has been awarded from.
If we decide to change how much you are awarded, we will write to you. If we cannot alter our decision, we will tell you why and advise you of your right of appeal to the Valuation Tribunal.
Council Tax Support Exceptional Hardship Fund
If you believe that a change to your Council Tax Support has placed you in severe financial hardship and you can’t pay your council tax bill, you can apply for additional support.
This fund is discretionary, and every claim is assessed upon the evidence you give us. The fund is designed to help you pay your Council Tax bill in the short-term and allow you to take action to make these payments in the future. If successful, the payment will be made straight to your Council Tax account.
There’s a limit to this fund and there’s no guarantee that you will receive assistance.
Further information
If you have any problems with your online forms please contact us:
- call: 01609 779977
- email: benefits.ham@northyorks.gov.uk
