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How Council Tax reduction is worked out

Working age claimants

  • The reduction is based on 75% of your liability; this means that you will have to pay at least 25% of your bill.
  • The savings and capital limit is £6,000  (even if you are in receipt of Income Support, Job Seekers Allowance or Employment and Support Allowance).
  • The reduction is based on a maximum of equivalent band D charge. For example, if you live in a band E property, your reduction will be based on the equivalent of a band D charge. This will be in addition to the reduction being based on 75% of your liability.
  • Non-dependant deductions are a fixed rate of £5 per week.
  • New claims will not be backdated.

Protected working age groups

Certain people are protected from some of the above changes if they are getting one of the following benefits:

  • Severe or Enhanced Disability premium.Disabled Child premium.
  • Carer premium.
  • War disablement pension or war widow(er)s pension.

You can find more information about the qualifying criteria for the above groups on the working age protected groups page.

If you fall into one of the protected groups:

  • your reduction will be assessed on 100% of the liability rather than 75%
  • the calculation will not be subject to a band D restriction.
  • the savings and capital limit will be £16,000. Capital between £6,000 (Working age) or £10,000 (Pension age) to £16,000 will attract a tariff income. A tariff income is where we count part of your savings and capital as income.

Pension age claimants

  • the reduction will only be based on 100% of your Council Tax
  • the savings and capital limit is £16,000
  • the level of non-dependant deduction will depend on the non-dependant’s income
  • backdating can be considered – a maximum backdate will be three months.

Who is classed as a working age applicant and who is classed as a pension age applicant?

You are classed as a working age applicant until you have reached state pension credit qualifying age and you or your partner is not in receipt of one of the following benefits:

  • Income Support
  • Income based Job Seekers Allowance
  • Income related Employment and Support Allowance or Universal Credit

If you have reached state pension credit qualifying age and you or your partner is in receipt of one of the above benefits, your application will be classed as a working age application.

To work out when you will reach state pension credit qualifying age you can find out on the goverment's website.

What is a non-dependant?

we class a non-dependant as someone who is over 18 that lives with you, they can be:

  • friends
  • relatives
  • children who have left school or college and you no longer get Child benefit for
  • boarders, lodgers, tenants or sub-tenants

Council tax reduction scheme policies 2018/2019

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