How much Council Tax Reduction can I get?

You may be able to get Council Tax Reduction for the full amount of Council Tax that you have to pay. This will depend on which Council Tax Band your property is in, your income, and whether you have other adults living in your home.

How is my Council Tax Reduction worked out?

If you get Income Support, Job Seekers Allowance (Income Based), Employment and Support Allowance (Income Related) or Guarantee element of Pension Credit:

You will get the full amount of your Eligible Council Tax after any non-dependant deductions have been taken off.

If you do not get Income Support, Job Seekers Allowance (Income- Based), Employment and Support Allowance (Income Related) or Guarantee element of Pension Credit:

We work out your Council Tax Reduction by comparing the money you get each week with your 'applicable amount'. Your applicable amount is the amount of money the Government says you (and your partner and dependant children, if they live with you) need to live on. It is made up of a personal allowance for you and your partner, allowances for dependant children, and extra amounts (usually called "Premiums") for disability, age, single parents and families.

If the money you get each week is less than, or the same as your applicable amount, you will get the full amount of eligible Council Tax Reduction.

What money is taken into account when my Council Tax Reduction is worked out?

We take into account the money you earn from work after money has been taken out for:

  • Tax and National Insurance
  • Half of any money you pay into a pension fund

We do not take into account:

  • The first £30.00 of the money you earn each week, if you are single (£5.00 if you are a pensioner) 
  • The first £60.00 of the money you (and/or your partner) earn each week, if you are a couple (£10.00 if you are a pensioner)
  • The first £60.00 of the money you (and/or your partner) earn each week, if you are disabled, or qualify for a carer premium (£20.00 if you are a pensioner)
  • The first £60.00 of the money you earn each week, if you are a single parent (£25.00 if you are a pensioner)
  • An extra £17.10 of the money you (and/or your partner) earn each week, if you work an average of 16/30 hours or more per week, and your applicable amount includes a family premium, and this has not been disregarded from your entitlement to a Tax Credit (see below).
  • Childcare costs in certain cases

We also take into account :

Any other money you have coming in. This includes most Social Security benefits, all types of Tax Credits, works and private pensions and any savings or capital you have.

We do not take into account:

  • Disability Living Allowance (or its replacement Personal Independence Payment)
  • Attendance Allowance
  • Mobility Allowance
  • War Widows/Widowers Pension
  • War Disablement Pension
  • Maintenance payments for children
  • The Tax Credit premium for working 16/30 hours or more
  • Child Benefit

But we need to know if you get any of these, as you may get more Council Tax Reduction, because some of these incomes attract a premium in your applicable amount.

What happens next?

When we get your claim form with all the details of your household, proof of your identity, and proof of all income and savings/capital, we will work out the maximum amount of Council Tax on which we can base the calculation.

This will usually be the amount of Council Tax you have to pay after any discounts/exemptions have been taken off.

If you have non-dependants living with you

This may reduce the amount of your maximum Council Tax Reduction.

If your income is more than your applicable amount

We will reduce your Council Tax Reduction by 20% of the difference. If the remaining amount is 1p per week or more, you will qualify for that amount of Council Tax Reduction.