How Is Council Tax Reduction Worked Out?

What qualifies for council tax reduction?

You can claim a council tax reduction if you pay council tax but you’re on a low income or no income at all and have savings below £16,000.

You can apply whether you rent or own your home, but you must actually live there and it must be your only or main place of residence..

Is council tax reduction means tested?

You may be eligible for Council Tax Reduction, if you are on a low income and have less than £16,000 in savings or capital (such as property). Council Tax Reduction is means tested. Your income will be assessed, including savings, pensions and your partner’s income.

What evidence do I need for council tax support?

Examples of acceptable documents include: National Insurance number card. Birth certificate (full or short) Passport (must be current and valid)

How long does it take to get a council tax reduction?

14 daysOnce the local authority has all the information or evidence it needs, it must make a decision on your application for Council Tax Reduction (CTR) within 14 days, or as soon as is reasonable after that. The local authority must tell you in writing when it has made the decision.

Does savings affect council tax reduction?

You do not have to be getting any other benefits to qualify for help; it does not matter if you already get a discount for living alone. Savings over £16,000 usually mean you will not be able to get Council Tax Benefit, although this savings limit does not apply to anyone getting Pension Credit Guarantee.

What can you get free on universal credit?

Discounts and freebies you can get if you’re on Universal Credit or benefitsApply for a council tax discount. … Nab discounted BT broadband. … Check for free school transport. … Up to £500 if you’re pregnant. … Apply for free school meals. … Get half price bus or rail fares. … Check if you can get Healthy Start food vouchers.More items…•

Do you get council tax reduction when retired?

If you get the guarantee part of Pension Credit If you’re a pensioner and either you or your partner get the guarantee part of Pension Credit, you are entitled to a full reduction on your council tax. The local authority will ignore both your income and your capital.

How much in savings can I have on benefits?

If you and/or your partner have £16,000 or more in savings, you will not be entitled to Universal Credit. If you and/or your partner have any savings or capital of between £6,000 and £16,000, the first £6,000 is ignored. The rest is treated as if it gives you a monthly income of £4.35 for each £250, or part of £250.

Can I get council tax reduction on universal credit?

If you receive Universal Credit you may have to pay less in Council Tax. This will depend on your circumstances and where you live. You can start the process to apply for Local Council Tax Reduction on GOV.UK. … You do not need to wait until your claim for Universal Credit has been approved or paid.

What is classed as low income?

The government’s department of work and pensions defines low pay as any family earning less than 60% of the national median pay. … By their calculations, anything less than £15,000 a year, before tax, counts as low pay. This equals £7.77 per hour in a standard full-time job.

Can I get a discount on my council tax if I am disabled?

You may be able to get a reduction in council tax under the disability reduction scheme if anyone resident in the property (adult or child) is ‘substantially and permanently disabled’. … there is a room (other than a bathroom, kitchen or toilet) needed by and mainly used by the disabled person.

At what age do you stop paying council tax?

In principle, people who are 80 plus do have to pay council tax.

Can council tax reduction be backdated?

If you’re on a low income, you may be entitled to some help towards paying your council tax. This is called Council Tax Reduction (CTR). In some cases, you can ask for your CTR to be backdated to a date before you sent in your application form. This applies to both pensioners and people of working age.

What is the income limit for universal credit?

Universal Credit then takes into account any: earned income. savings and capital between £6,000 and £16,000 (if above £16,000 you will not be eligible for Universal Credit) other benefits received.

How can I reduce my council tax band?

You can only formally challenge your council tax band if you’ve lived in the property for six months or less. This is also called making a proposal to change your council tax band. This is done through the Valuation Office Agency (VOA).