Local Council Tax Reduction Scheme

    Banded Discount Scheme 2020

    If you are of working age, we are changing the Local Council Tax Reduction Scheme (sometimes called Council Tax Benefit) from 1 April 2020. 

    We cannot change the rules for pensioners but for others, the current system will be replaced with a simple Banded Discount Scheme with your reduction being calculated from a simple table.

    In the future you will be able to claim on line.  But don’t worry if you find this difficult, we will be able to help you.
    We will cut down on the amount of information that you have to send to us with your claim.

    Will I have to pay more Council Tax?

    The vast majority of claimants will receive the same level of reduction as was the case under the old scheme.  Many will actually get more help, particularly families with children and people employed in low paid jobs.  Inevitably a few people may be worse off.  We are looking at those in detail to make sure that the reductions are correct and are affordable.

    What is Changing?

    The new system is different from the current scheme in the following ways:

    • Child Benefit will not be counted as income in your calculation
    • Working claimants will be able to keep more of their earnings without increasing their Council Tax bills
    • No deductions will be made for non-dependents living with you
    • More disabled people will now have their discounts increased
    • For Universal Credit claimants, we will usually be able to calculate your entitlement from information provided to us by DWP

    The cut off for people with £6,000 or more in savings will now apply to all working aged people – we think this is fairer.

    Council Tax Discretionary Payments 

    Any working aged claimant who receives Local Council Tax Reduction (LCTR) will receive an additional reduction to their bill of up to £150.  If your bill was already less than £150, the reduction will be for the whole amount of your bill.

    This will show on your bill as a Council Tax Discretionary Payment.  You will not be asked to repay this amount even if you stop claiming LCTR later in the year.

    Increases to Universal Credit and Working Tax Credits

    If you claim either Universal Credit or Working Tax Credits you will have received an increase in your payment, of £1,045 per year (around £20 per week) to help you to deal with the effect of the Coronavirus pandemic.

    Whilst ordinarily an increase in your income will result in an increase in your Council Tax bill, we want to ensure that your bill is not increased as a result of this specific payment.  We have therefore increased your LCTR to disregard the effect of the £20 payments.

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