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 earned income | Weekly contribution towards Council Tax liability |
|---|---|
| Less than £90.49, including not in work | £0 |
| Between £90.50 and £164.49 | £7.05 |
| Between £164.50 and £246.79 | £14.10 |
| Between £246.80 and £329.09 | £21.10 |
| Between £329.10 and £411.39 | Up to £35.10 |
| Between £411.40 and £772.49 | Up to £49.15 |
| £772.50 or more | Full Council Tax payable |
There will be a £7.90 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.
