How to apply for council tax reduction in the UK: a complete guide
Council Tax Reduction is a scheme, which is aimed to assist people with low income with their council tax payments.
Here, we’ll discuss what Council Tax Reduction is, how it works, and how you can claim it.
What is council tax reduction?
Council Tax Reduction or CTR referred to as Council Tax Support is a local tax credit or rebate scheme to assist those who are unable to afford to pay local council tax.
It replaced the old Council Tax Benefit system in April 2013 rather than be provided in a discretionary manner.
CTR’s main aim is to cut the Council Tax which you pay based on your income and savings.
How it works
Here is a detailed explanation of how it works:
1. Local council schemes
The council tax reduction schemes are administered by the local councils, therefore the rules for the reductions and the charges differ from county to county.
Every council has its scheme and therefore, you should contact your local council for more information.
2. Assessment process
The eligibility for council tax reduction is determined through a means-tested assessment, which includes:
Income assessment:
Your income will be calculated from your earnings, benefits such as jobseekers allowance or working tax credit, universal credit, tax credits, or pensions.
Savings and capital:
Your savings and capital as well as your investments will be taken into account.
Partner’s income:
In this case, if you have a spouse the income earned by this spouse will also be taken into consideration.
Circumstances:
Other concerns, which will include the size of your family, the ages of the children, and if any of them are disabled will be considered.
3. Types of reductions
If you qualify for Council Tax Reduction, your bill can be reduced in several ways:
- Percentage off: A percentage less than your Council Tax rate you have to pay.
- Fixed amount off An amount that is taken as a regular payment from the Council Tax you pay, although the actual amount is constant.
- Full reduction: In some cases, it can reduce the amount by as much as your whole Council Tax so you end up paying nothing.
4. Application process
To apply for Council Tax Reduction, you need to:
Contact your local council:
For you to apply for social housing, there are several steps to follow.
However, the first step will be to contact your local council to express your interest in how the process begins.
This can usually be done online, or by coming over to our office.
Provide documents:
You have to show your evidence of income and savings and other factors that are vital in the financial process.
5. Ongoing requirements
If you receive Council Tax Reduction then you must report any change in circumstances that may have any implications on the entitlement.
If this is not accomplished then penalties may be incurred.
How much council tax reduction will I get?
You get a lesser Council Tax Reduction based on your earnings, savings, and the local council’s rules regulating the matter.
Here are some general points:
Income and savings:
Your Benefits and your income, be it from savings, investments, etc are considered.
For instance, if you are of working age then you can only have not more than £10,000 in savings to qualify.
Employed under this scheme are those aged below 65 years and anyone earning a salary above £113 per week.
The limit is however £16,000 if you are of pension age.
Local schemes:
The amount of reduction therefore depends on the scheme that is implemented by each council and this may differ.
This means that while some councils may offer very low reductions others may offer much better reductions.
How much is council tax a month?
Council Tax amounts vary widely depending on where you live and which band your property is in.
Council tax bands and rates
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Am I eligible for council tax reduction?
To be eligible for Council Tax Reduction, you typically need to meet the following criteria:
- Low income: Employed, unemployed, or in receipt of benefits and have to be on a low income to be eligible to join this program.
- Savings limits: You are required to have savings amounts that are below the stated working age of £10,000 and pension age of £16,000.
- Residency: You have to bear the responsibility of Council Tax on the property occupied by you and should fulfil some essential conditions.
Here are some specific groups that may be eligible:
- Working age: If you are of working age and have low earnings or you are in receipt of some kind of benefits then you may be eligible.
- Pension age: In the case you are a pensioner with a low income or savings up to the above-stated limit, you can also benefit.
- Disabled: While being disabled does not automatically qualify you, if you are on a low income and meet other criteria, you can still apply.
How do I claim council tax reduction?
To claim Council Tax Reduction, follow these steps:
Check eligibility:
The former can be accessed through the internet or you can contact your local council to check whether one qualifies or not.
Gather information:
Gather information about your income, savings annuities, or any other forms of income you receive.
Apply online or offline:
Most local councils have online applications or you can present your application in physical form at the local council’s office.
Provide documents:
It may be necessary to show the income and savings that you have to support yourself, or to pay for the care that you need.
FAQ: council tax reduction in England
Who is eligible for council tax reduction in England?
You qualify to apply if you are a low-income earner, your savings do not exceed the set limits and you meet the residence requirements.
These include the working population, those who are retired, and those of working age benefiting from such schemes as disability benefits.
What is local council tax support?
Local council tax support on the other hand means the particular measures for a particular area that are provided for all councils to alleviate council tax for needy citizens.
These schemes can also differ a lot one from another between the two councils.
What age do you stop paying council tax in the UK?
There is no fixed age at which one will stop paying this council tax together. However, certain pensioners might obtain larger reductions as per pension age rules.
What is my council tax band?
The amount you pay depends on the band that your house or any other property falls under regarding its value.
There are some bands for the properties starting from the band ‘A’ which is the lowest, and ending with the band ‘H’ which is the highest. It will be stated on your Council.
Tax bill and you can also contact your local council to get information about it.
Final words
It is worth also mentioning that council tax reduction is another important way of helping those people in the United Kingdom who have difficulties paying the council tax.
This way, you will not pay more than you should and one can take some of the steps highlighted below to acquire more information about it.
It is always advisable to contact your local council and get detailed information for while schemes may be similar they differ.
Even if you receive a low income, anyone should apply to know if one is eligible for a Council Tax discount.
Also read – Everything you need to know about car insurance in the UK
