People claiming certain benefits could be entitled to a council tax reduction that lowers their bill
Brits claiming five benefits may also be eligible for a council tax reduction. It’s advisable to contact your local authority to determine whether you qualify for reduced payments.
Your local council determines council tax rates, which finance services including waste collection and highway maintenance. The sum you’re liable for depends on your property’s valuation band and your council area.
Nevertheless, not everyone is required to pay the complete amount. Citizens Advice explains that certain individuals can access what’s known as council tax reduction (CTR).
This programme assists those with limited incomes or receiving benefits. Citizens Advice says: “If you’re on a low income you might be able to get your council tax reduced. If you get benefits or have other people living with you, this might affect how much your council tax is reduced by.
“Your local council will ask you details about your income and your circumstances, so they can work out if you’re entitled to council tax reduction (CTR). They will then work out your new bill and tell you how much council tax you need to pay.
“If you have other people living with you who are aged 18 or over, you might all be responsible for paying council tax. Only one of you needs to apply for CTR.”
It’s crucial to recognise that CTR awards typically don’t involve direct cash payments. Rather, the council will reduce the council tax amount you’re required to pay.
There are two categories of CTR – one for working-age individuals and another for those who have reached State Pension age – with eligibility requirements for the first group differing between councils.
To establish whether you qualify for a reduction, it’s advisable to contact your local authority. You may be entitled to CTR if you’re liable for the council tax payment and are in receipt of:
- Guarantee credit as part of Pension Credit, either independently or alongside savings credit
- Universal Credit
- Income Support, income-based Jobseeker’s Allowance, or income-related Employment Support Allowance, which entitles you to maximum council tax reduction minus any non-dependent deduction
If you share your home with another adult who isn’t your partner, your maximum council tax reduction could be reduced due to the assumption that they’ll contribute towards the bill, referred to as a ‘non-dependent deduction’. Even without these benefits, you can still make an application for CTR if you have low earnings and capital below £16,000.
Additionally, you could qualify for a 25 per cent reduction on your council tax bill if you reside alone or if everyone else in your household is “disregarded”. Individuals classified as “disregarded” include those under 18, apprentices, full-time college or university students, student nurses, foreign language assistants registered with the British Council, those with severe mental impairment, live-in carers for someone who isn’t your partner, spouse, or child under 18, and diplomats.
For further details, visit the Government website or contact your local council.
