What Qualifies for Council Tax Reduction?

This article will explain what qualifies for Council Tax Reduction. Council Tax Reduction is a way to reduce the amount of council tax you have to pay.

Who Can Get Council Tax Reduction?

Before you can apply for Council Tax Reduction (CTR), you must meet certain criteria. This can vary depending on your council, but you must meet these to qualify:

To qualify for council tax reduction, you must

Be the owner or tenant of the property
Be responsible for paying the Council Tax
Have a low income below £16,000 or receiving benefits

Contact your local authority to find out more when you believe that you may be eligible for Council Tax Reduction.

Also, you can apply if you’re liable for the Council Tax Bill and you get:

guarantee credit part of Pension Credit, either on its own or with the savings credit.
Universal Credit
Income Support, income-based Jobseeker’s Allowance, income-related Employment Support Allowance

Since you eligibility is based on pension, make sure to check your State Pension. It might be helpful to know your council tax band.

You cannot get a reduction if you or your partner together, have over £16,000 in savings and capital. But, if you receive Pension Credit (Guarantee Credit) you may still qualify.

Can Get a Council Tax Discount if I Live Alone?

You can receive a 25% discount on your Council Tax Bill when you are a single person. Certain people are not included when paying Council Tax, called ‘disregarded people’ and you can receive a 50% discount if everyone living in the house is these types of people.

If you want to know more about disregarded people, check out this section on ‘Who is Exempt?’.

When a dependant adult is living with you, a second adult rebate might be a more suitable option.

How Much Council Tax Reduction Will I Get?

The amount of Council Tax Reduction you can get will depend on your circumstances. The council will look at

Your income
The savings you have
Who else lives with you
Whether you are responsible for paying the Council Tax

If you are eligible for Council Tax Reduction, the council will work out how much council tax reduction you can get. The council will send you a Council Tax Bill that shows the amount of Council Tax you need to pay, and the amount of Council Tax Reduction you are entitled to.

What if My Circumstances Change?

If your circumstances change, you must tell the council so they can recalculate your Council Tax Bill. If you do not tell the council and your circumstances have changed, you might end up paying too much Council Tax.

Changes in circumstance that you need to tell the council about include:

A change in your income
A change in who is living with you
If you move house
If you stop receiving certain benefits
If you start receiving certain benefits
If you go into hospital or a care home
If you come out of hospital or a care home
If you have a baby
If someone dies
If you are sent to prison

Tell the council about any changes in circumstance as soon as possible so they can recalculate your Council Tax Bill. You can usually do this online, or by calling the council.

It’s important to note that you might not qualify for a Council Tax Reduction if you have been convicted of a criminal offence relating to non-payment of council tax. If you are in this situation, you should contact your local authority to discuss your options.

What if I Disagree With the Council’s Decision?

If you disagree with the council’s decision, you can ask them to look at their decision again. This is called a ‘reconsideration’. You must do this within 21 days of the date on your Council Tax Bill.

If you still disagree with the council’s decision after they have reconsidered it, you can appeal to an independent tribunal. You must do this within 30 days of the date on your Council Tax Bill.

Appealing to an independent tribunal is free of charge.

For more information about council tax reduction, visit GOV.UK.

What if I Don’t Qualify for Council Tax Reduction?

If you don’t qualify for Council Tax Reduction, you might still be able to get help with your Council Tax Bill. You can check if you are eligible for Council Tax Reduction by contacting your local authority.

There are other ways you can get help with your Council Tax Bill, even if you don’t qualify for Council Tax Reduction. You might be able to get Council Tax Relief if you are on a low income or claiming certain benefits. You can also apply for a council tax exemption if you are a student, or if your property is empty or furnished.

Where Do I Apply for Council Tax Reduction?

You can apply online, through Gov.uk, or your local council’s website.

Conclusion:

Now that you know more about what qualifies for Council Tax Reduction, before applying for one, you should: check your state pension, and visit Gov.uk or your local council’s website for further information about what qualifies for Council Tax Reduction. Also, complete our eligibility tool to find out if you are entitled to government help with your debt. Sadly, not everyone can get a reduction.

Why not download our free E-Book, which offers 10 simple tips on how to quickly get out of debt.

We are available to talk to you, just contact us via our email if you have any questions.