We changed the Council Tax Reduction scheme for Universal Credit recipients of working age in April 2020.
We replaced the old system with a banded scheme, with your reduction being calculated from a simple table.
This scheme looks purely at whether you are working as well as receiving universal credit and, if so, what your monthly earnings are. We will receive this information directly from the Department for Work and Pensions.
Our scheme uses a series of 'income bands': we will work out your entitlement to Council Tax Reduction based on which band your earned income falls within. (Subject to non-dependant deductions where applicable). A banded scheme means that small changes in your earned income will not necessarily change your entitlement to Council Tax Reduction.
If you and your partner (if you have one), are not working, you will fall into the first band.
| Weekly income | Weekly contribution towards Council Tax liability |
|---|---|
| Less than £84.80, including not in work | £0 |
| Between £84.80 and £154.19 | £6.60 |
| Between £154.20 and £231.29 | £13.20 |
| Between £231.30 and £308.44 | £19.75 |
| Between £308.45 and £385.54 | Up to £32.90 |
| Between £385.55 and £723.99 | Up to £46.05 |
| £724 or more | Full Council Tax payable |
There will be a £7.40 per week deduction from the amount of reduction you are entitled to for each applicable non dependant living with you. Some exclusions apply – refer to regulation 48 in the working-age scheme linked below.
We have made these changes to the local scheme because of the way Universal Credit is calculated. Our aim is to simplify the process for all working age customers receiving Universal Credit, giving increased stability to those whose wages or income fluctuate each month and reduce the number of revised council tax bills for minor changes in income.
Council Tax Support Fund 2023
The Government has announced additional support for households who are entitled to Council Tax Reduction, from 1 April 2023, but still have some Council Tax to pay.
The award will only be granted if you still have Council Tax to pay for 2023/24, after any other discounts or exemptions have been applied, and is a maximum of £25 off your bill.
Examples are shown in the tables below.
| Reason for Council Tax reduction | Amount |
|---|---|
| Council Tax liability 2023/24 | £2,000 |
| Less Council Tax Reduction | £1,750 |
| Less Council Tax Support Fund 2023 | £25 |
| Total Council Tax due | £225 |
| Reason for Council Tax reduction | Amount |
|---|---|
| Council Tax liability 2023/24 | £2,000 |
| Less Council Tax Reduction | £1,985 |
| Less Council Tax Support Fund 2023 | £15 |
| Total Council Tax due | £0 |
If you have applied for Council Tax Reduction but are still struggling, you may be able to apply for other help such as a discretionary discount.
These awards are discretionary and will be considered on a case-by-case basis.
