Local Council Tax Support scheme for working age people
Introduction
The current Council Tax Support scheme will end on 31 March 2018 and from 1 April 2018 the Council will need to put in place a new Council Tax Support scheme. Cheltenham Borough Council is proposing to continue with the exact qualifying criteria from the current Council Tax Support scheme, ensuring that people continue to receive the vital help they need. This means that the calculation for Council Tax Support would remain the same and it’s likely that awards would not differ too much.
The purpose of this document is to provide a high level overview of the current scheme so that it is clear what we are proposing to continue with.
What is Council Tax Support?
Council Tax Support helps those people who are on a low income or have no income to pay their council tax. If the If the person qualifies, a contribution towards Council Tax is paid directly to the council tax account reducing the amount that the person has to pay. Council tax bills can be reduced by up to 100%.
You canapply if you own your home, rent, are unemployed or working.
What you get depends on:
- your circumstances (eg income, number of children, benefits in payment)
- your household income - this includes you and your partner’s income and savings
- if your children live with you
- if other adults live with you
Cheltenham Borough Council’slocal Council Tax Support scheme
Cheltenham BoroughCouncil is required to have a local Council Tax Support scheme for working age people. A national scheme prescribed by the Government applies to pensioners (i.e. those who have reached the age at which Pension Credit can be claimed)
Our current Council Tax Support scheme for working age people will end on 31st March 2018. We are not proposingto make any changes to the new scheme we approve for the 2018-2019 year.
Who can qualify?
This working age scheme applies to a person who
a. has not attained the qualifying age for state pension credit; or
b. has attained the qualifying age for state pension credit and he/she or their partner, is a person on income support, on an income-based job seeker’s allowance, or on anincome-related employment and support allowance.
The scheme does not apply to anyone who is subject to immigration control and non-economically active EEA nationals.
To qualify for Council Tax Support you must be liable to pay council tax in respect of a dwelling in which you are solely or mainly resident and your combined capital/savings must be less than £16,000.Capital that the customer has may contribute to the calculation as well as their income if it is above £6,000. The Council will work out an assumed income weekly income from the customer’s capital which is known as a tariff income. This will be added to the customer’s overall income figure and will be used to calculate an entitlement to Council Tax Support.
You will be required to make an application to claim Council Tax Support.
How we work out your entitlement
The scheme for working age claimants is means tested. It compares calculated income against an assessment of basic living allowances called an applicable amount.Calculated income includes earnings, benefits, other household income and income from capital over £6,000. Some income is disregarded, eg child benefit, child maintenance, disability living allowance and personal independence payments.
If your calculated income is less than the basic living allowance you can receive up to the maximum Council Tax Support.
If your calculated income is above your basic living allowance you can still be entitled to Council Tax Support. We use the amount of income you have above the basic living allowance (excess income) calculating to reduce the maximum council tax support to a lesser amount. For every £10 per week that your income exceeds your basic living allowance we will reduce the maximum amount by £2 per week to work out your entitlement.
If you have any adultsother than a partner (non-dependants),living with you we may reduce the amount of support further as they are expected to make a contribution to the council tax. This is called a non-dependant deduction.
Council TaxSupport is also available to council tax payers who do not have a partner, but share their home with at least one other adult who is not a paying lodger and is on a prescribed low income or benefit. This support is calculated using the circumstances of the second adult(s) rather than the council tax payer. The maximum support is 25% of the council tax bill.
Recipients of Council Tax Support must notify the Council immediately if there are anychanges that might affect their right to or the amount of Council Tax Support received.
All awards of Council Tax Support will be credited direct to the customer’s Council Tax account. Applicants will be notified in writing about their weekly award and how it was calculated.
For more information or details on how to apply please contact our benefits team on 01242264341 or email