Council Tax Reduction Scheme
Council Tax Reduction Scheme provides financial support for
people on low income.
This scheme is means tested, therefore the amount your
council tax bill can be reduced by depends on a number of circumstances,
including your income and savings.
To be entitled for Council Tax Reduction, you must:
- be liable to pay council tax
- live in the property for which you’re liable to pay council tax
- be on a low income and have less than £16,000 in savings, capital or investments, unless you receive the guarantee element of pension credit.
The amount your bill can be reduced by will depend on:
- the money you and your partner have coming in, including earnings, benefits, tax credits and pensions
- you and your partner’s capital, savings and investments
- your circumstances, such as your age, the number of people in your household and the ages of your children; whether you or any of your household are disabled, or whether you are or your partner are receiving a war disability or war widows/widower’s pension.
Maximum reduction and exemptions
The maximum amount of reduction you will receive will be set at 91.5 per cent of the council tax you are charged, unless:
- you, or your partner are in receipt of war disability pension
- you, or your partner are in receipt of a war widows or war widower’s pension
- you, or your partner, are in receipt of an Armed Forces Independence Payment
- you are your partner are in receipt of Employment and Support Allowance
- the calculation of your reduction includes disability premium, severe disability premium, enhanced disability premium or a disabled child premium in your applicable amount
- you receive a disabled band reduction on your council tax.
In which case your Council Tax Reduction would be calculated at 100 per cent of the council tax charged.
Band E restriction
If you live in Council Tax band F, G or H property then the amount of reduction you can receive is limited to that of a band E property.
If you’re entitled to a council tax reduction, it will be shown on your council tax bill, along with any balance you need to pay.
If you fall in one of the exceptions listed under ‘Maximum reduction’ your reduction will be calculated on the actual band your property is in, not on a band E amount.
You can use our benefits calculator to get an estimate of how much you may be entitled to.
For more information please see our:
Important – tell us about a change of circumstances
If you receive a discount or exemption, but experience a change in circumstances that may affect your entitlement, then you must let our council tax team know immediately – please complete our change of circumstances form.
- If you inform another council department, such as the elections team, rather than the council tax team, then this information cannot lawfully be shared with us and your change of circumstances will not dealt with.
- Telling the DWP, Pension Service or HM Revenue & Customs of a change does not mean that we will be notified of the change. You must tell us directly.
Failure to provide this information to us within 21 days is a criminal offence and could lead to prosecution or a financial penalty being imposed.