Our Council Tax Reduction scheme for working-age people who are claiming Universal Credit uses a simple system of income bands to assess your Council Tax Reduction.
The Council Tax Reduction scheme allows you to vary your hours at work while knowing that you won’t lose our support. It also means that you will get fewer council tax bills if your income changes from month to month.
The income band system gives you a percentage reduction on your council tax bill, based on your Universal Credit award, your earnings and some other types of income.
What income is counted
We only use the Universal Credit net award, so if you are subject to the benefit cap, then this is already taken into account when determining your award of Council Tax Reduction.
This is the same for savings as your Universal Credit will have a tariff income applied to your award.
It is your responsibility to ensure that your Universal Credit award is correct and up to date.
Non-dependants living with you
Non-dependants are adult people in your home who live with you but are not liable for paying rent under a formal arrangement. Non-dependant deductions are based on the income band applied to your Council Tax Reduction award.
Apply for Council Tax Reduction
Universal Credit is run by the Department for Work and Pensions, but it does not include any help with paying council tax. We administer the Council Tax Reduction scheme and you must apply to us separately for this.
The DWP notifies us every month of any changes to your Universal Credit award. You must still tell us about changes that might affect your Council Tax Reduction, including:
- changes to your household, such as people moving in or out
- any income you get that is not part of your Universal Credit calculation.
If you had a previous claim that we ended because your income was too high, you need to make a new application for Council Tax Reduction.
Include your Universal Credit breakdown in your application
You need to include a full breakdown of your universal credit award and any deductions. Here's how to get it:
- log into your online Universal Credit Account
- go to Payments
- scroll down to find the payment date that you need and click on it to open the full details
- send us a copy of this page
