Council Tax
Council Tax Reduction
You may be entitled to a reduction in your bill if you are on a low income, even if you own your own home. Council Tax Reduction can't be used to reduce water or sewerage charges on your bill.
Your entitlement is automatically recalculated at the start of the new Council Tax year.
If you have a partner we will also include their income and savings when we work out any entitlement. We may also take into account the income of any other adults living with you in certain circumstances.
You can claim if you, or your partner:
- Live in the property you're applying for
- Are on a low income. This can be DWP benefits or low paid work
- Are responsible for paying the Council Tax bill
- Do not have combined savings or capital of £16,000. This is unless you're receiving Pension Credit (Guaranteed Credit)
Second Adult Rebate
If you don't qualify because your income is too high or you have too much in savings or capital, you may be entitled to a Second Adult Rebate. Check what you're entitled to by completing our Apply Once form.
Read our basic guide for all Council Tax Bands and to help you decide whether to apply. If your earnings are less than detailed in the table, you may qualify and the amount of assistance is worked out on a sliding scale according to your individual circumstances.
Council Tax Reduction is changing for Universal Credit Customers
The Council Tax Reduction Scheme is changing with effect from 1 April 2022 for customers who receive Universal Credit.
If you are currently receiving Council Tax Reduction you may find your weekly award increases or decreases from 1 April 2022. If this is the case, we will be in touch to advise of the change.
Your Council Tax Reduction award from 1 April 2022 will be shown on your council tax bill for 2022/2023.
Understanding Your Council Tax Reduction Entitlement from 1 April 2022 - Universal Credit Recipients
The Council Tax Reduction (CTR) scheme is set in law made by Scottish Government and Parliament. The previous Council Tax Reduction scheme for working age households is being replaced with a new scheme effective from 1 April 2022.
How Will the New Scheme Work?
Those customers who do not receive Universal Credit will see no difference in the way their Council Tax Reduction is calculated.
Those receiving Universal Credit will see a change though your Universal Credit will still be used to assess your Council Tax Reduction, but the calculation will be different. The majority of our Council Tax customers will see no change in the amount of Council Tax Reduction they are awarded, some will see an increase and others will see a decrease.
Council Tax Reduction scheme entitlement will be based on:
- Household income and your and/or your partner's savings/capital
- Your Applicable Amount - figure based on your circumstances, household make-up etc as well as on the circumstances of those in your household. This amount is set by the government to meet basic living costs
- Your total eligible council tax liability charge
Household Income and Savings/Capital
Your Universal Credit claim details will still be used to calculate your Council Tax Reduction.
In calculating your entitlement, we will take account of:
- Any amount you are awarded as the Child Element in Universal Credit
- Any amount you are awarded as the Disabled Child Element in Universal Credit
- Any amount you are awarded as the Childcare Element in Universal Credit and
- Any amount you are awarded as the Transitional Element in Universal Credit
The total of these plus any other income you receive, eg Jobseekers Allowance, Employment & Support Allowance, Carers Allowance, pensions, earnings etc will be used in the calculation.
If your actual award of Universal Credit, including deductions made, is less than the total of the above elements your Universal Credit award amount will be used in the calculation for Council Tax Reduction.
Deductions for advance payments, debts and loans repayments, tax credits recovery, managed payments to landlord etc. will be included when working out your award of Universal Credit.
You will still be exempt from claiming Council Tax Reduction if your total capital exceeds £16,000. Any amount over £6,000 will affect your entitlement as we will deduct £1 each week from your entitlement for every £250, or part thereof, over this £6,000 lower limit.
How Much Is My Applicable Amount?
Your applicable amount is made up of:
- A personal allowance for you and your partner if you have one, and
- An addition for children who live with you, and
- Any premiums based on special circumstances, e.g. a disability premium because someone in the family is disabled
Your Total Eligible Council Tax Liability Charge
To calculate your Council Tax Reduction, we need to work out your total eligible council tax liability charge. Water and sewerage charges are not eligible for Council Tax Reduction, and we will deduct amounts in relation to any discounts or disregards you receive.
Couple Mr and Mrs Jones with 3 children
Income and capital
- Standard allowance = £257.33
- Housing Element = £450.00
- Child Element = £519.58
- Disabled Child Element = £0.00
- Childcare Element = £0.00
- Carer Element = £0.00
- Limited Capability for Work Element = £0.00
- Total entitlement before deductions = £1226.91
Deductions
- Net earning deducted after disregard and taper = £228.25
- Advance payments = £32.34
- Total deductions = £260.59
Payment
Total payment for the month is £1266.91 – £260.59 = £966.32
Other income and capital/savings
- Child benefit of £50.70 per week
- Net earnings of £857.23 per month
- No savings or capital
Income calculation
- Universal Credit element of £519.58 × 12 ÷ 52 = £119.90 per week
- Earnings £857.23 × 12 ÷ 52 = £197.82 per week
- Less £10 per week earnings disregard = £187.82 per week
- Total weekly income = £307.72 per week
Applicable amount calculation
- Personal Allowance (couple rate) = £121.05
- Child Allowance (3 × £88.50) = £265.50
- Total = £386.55
Council Tax Liability calculation
- Council tax liability = £950.93 per year
- Sewerage = £191.87 per year
- Water = £165.27 per year
- Gross liability = £1308.07 per year
- As water and sewerage cannot be included in Council Tax Reduction calculation net council tax liability for CTR =£950.93 per year
- Weekly net Council Tax Liability for Council Tax Reduction purposes (£950.93 ÷ 365 days × 7 days) = £18.24*
A further weekly amount would be deducted, in certain circumstances, if Mr and Mrs Jones had someone over 18 living with them.
This is called a "non-dependant deduction", it represents that individual's contribution towards the council tax bill and would reduce the amount Mr & Mrs Jones would be entitled to in terms of their maximum possible CTR award.
Council Tax Reduction calculation
- Total weekly income = £307.72
- less Applicable Amount = £386.55
- Excess Income = £0.00
As Mr and Mrs Jones' income is less than their applicable amount, and they have no excess income within the Council Tax Reduction calculation, they are entitled to receive full Council Tax Reduction of £18.24 per week.
£948.48 (52 weeks at £18.24 per week) will be transferred to Mr and Mrs Jones' council tax account and they will be issued with an updated bill showing the reduction and new instalment amounts because of the Council Tax Reduction award
Single applicant Mr Smith, over 25 years of age
Income and capital
- Standard allowance = £324.84
- Housing Element = £375.00
- Child Element = £0.00
- Disabled Child Element = £0.00
- Childcare Element = £0.00
- Carer Element = £0.00
- Limited Capability for Work Element = £0.00
- Total entitlement before deductions = £699.84
Deductions
- Net earning deducted after disregard and taper = £205.75
- Advance payments = £32.34
- Total deductions = £238.09
Payment
Total payment for the month is £699.84 – £238.09 = £461.75
Other income and capital/savings
- Take home pay of £457.23 per month
- Universal Credit as detailed above
- No savings or capital
Income calculation
- Universal Credit element of £0.00 × 12 ÷ 52 = £0.00 per week
- Earnings £457.23 × 12 ÷ 52 = £105.51 per week
- Less £5 per week earnings disregard = £100.51 per week
- Total weekly income = £100.51 per week
Applicable amount calculation
- Personal Allowance (single person over 25 rate) = £77.00
- Total = £77.00
Council Tax Liability calculation
- Council tax liability = £950.93 per year
- Discount (single person) = £237.73 per year
- Sewerage = £191.87 per year
- Water = £165.27 per year
- Gross liability = £1070.34 per year
- As water and sewerage cannot be included in Council Tax Reduction calculation net council tax liability for CTR = £713.20 per year
- Weekly net Council Tax Liability for Council Tax Reduction purposes (£713.20 ÷ 365 days × 7 days) = £13.68*
A further weekly amount would be deducted, in certain circumstances, if Mr Smith had someone over 18 living with him
This is called a "non-dependant deduction", it represents that individual's contribution towards the council tax bill and would reduce the amount Mr Smith would be entitled to in terms of his maximum possible CTR award.
Council Tax Reduction calculation
- Total weekly income = £100.51
- less Applicable Amount = £77.00
- Excess Income = £23.51
- 20% of Excess Income = £4.70
Mr Smith is therefore expected to pay £4.70 per week towards his council tax and is entitled to the remainder of his weekly council tax liability as Council Tax Reduction - £8.98 per week
A council tax bill will be issued to Mr Smith with £468.24 Council Tax Reduction included reducing his total liability and therefore his instalment amounts.
Upload evidence or other documents online
If you need to submit documents as evidence, you can use our online form to upload photos or scans of your evidence.