Council Tax Reduction Scheme 2025 to 2026

Part 2 (paragraphs 60 to 119) - Council Tax Reduction Scheme

Contents - Part 2

People treated as not in Great Britain

60. Council tax reduction is payable only to those applicants who live in Great Britain and, in some circumstances, people are treated as if they are not in Great Britain and are therefore excluded from the scheme. This applies where they do not satisfy the habitual residence test and where they are subject to immigration control.

61. The habitual residence test is in two parts: first, an applicant must show that they are habitually resident (intend to settle and make their home in the UK, Channel Islands, Isle of Man, or the Republic of Ireland). Secondly, EEA nationals (people from EU countries together with Norway, Iceland, Switzerland and Liechtenstein) must have a legal right to live in the UK and claim benefits, i.e. a 'right to reside' in the UK (known as the residence rules). These rules are satisfied if the applicant is, for example:

  • a worker or is self-employed in accordance with the EEA regulations;[footnote21]
  • a family member of such a worker or self-employed person;
  • a worker who has ceased activity, for example because of retirement or incapacity, or a family member of such a worker;
  • a family member of a deceased worker;
  • a refugee;
  • is receiving Income Support, income-based Jobseeker’s Allowance, income- related Employment and Support Allowance or Universal Credit (but this does not apply if a new applicant is receiving income-based Jobseeker’s Allowance and their right to reside was decided only on the basis that they were a jobseeker or the family member of a jobseeker).

62. However, there are some circumstances in which EEA nationals have been granted leave to enter or remain in the United Kingdom but who do not satisfy the habitual residence test for the purposes of applying for council tax reduction. An EEA national who is a jobseeker is not treated as having the right to reside for the purposes of applying for council tax reduction simply by being a jobseeker.  With some exceptions in respect of Northern Ireland, EEA nationals who are granted leave to enter, or remain in, the United Kingdom solely as a result of satisfying the special immigration rules that allowed EEA citizens to remain in the UK after the withdrawal from the EU (the settlement scheme), do not satisfy the habitual residence test simply because of these provisions.[footnote22]

63. British citizens returning to the UK after a period of living or working abroad have an automatic right to reside in the UK, but they do need to show that they are habitually resident in the UK.

64. An applicant who has entered the UK from Afghanistan is treated as habitually resident in the UK if they:

  • have been granted leave to remain in accordance with the Afghan Relocations and Assistance Policy, the Afghan Citizens Resettlement Scheme or the previous scheme for locally employed staff in Afghanistan; or
  • left Afghanistan in connection with the collapse of the Afghan government that took place on 15 August 2021.

65. An applicant who has entered the UK from Ukraine is treated as habitually resident in the UK if they:

  • were living in Ukraine immediately before the 1st January 2022 and left Ukraine in connection with the Russian invasion which took place on 24th February 2022; and
  • have been granted leave to enter or remain in accordance with the immigration rules; or
  • have a right of abode in the United Kingdom because they are British or in some cases Commonwealth citizens, or do not require leave to enter or remain because they are Irish citizens.[footnote23]

66. An applicant who has entered the UK from Israel, the West Bank, the Gaza Strip, East Jerusalem, the Golan Heights or Lebanon is treated as habitually resident if they:

  • were living in any of the above areas immediately before 7th October 2023 and left those areas in connection with the Hamas terror attack in Israel on 7th October 2023 or the escalating violence in the region following the attack;
  • have been granted leave to enter or remain in accordance with the immigration rules; or
  • have a right of abode in the United Kingdom because they are British or in some cases Commonwealth citizens, or do not require leave to enter or remain because they are Irish citizens.

67. An applicant who has entered the UK from Sudan is treated as habitually resident if they:

  • were living in Sudan before 15th April 2023 and left in connection with the violence on 15th April 2023 in Khartoum, and across Sudan;
  • have been granted leave to enter or remain in accordance with the immigration rules; or
  • have a right of abode in the United Kingdom because they are British or in some cases Commonwealth citizens, or do not require leave to enter or remain because they are Irish citizens.

68. An applicant is also treated as habitually resident if they have been granted, or are deemed to have been granted, leave outside the rules made under section 3(2) of the Immigration Act 1971.

69. Non-EEA and non-UK nationals may be subject to immigration control and an applicant who is subject to immigration control is excluded from applying for council tax reduction. For example, this applies where an applicant:

  • needs permission to enter or remain in the UK but does not yet have permission;
  • has permission to enter or remain in the UK, but only if they do not claim benefits or use other public services;
  • has been given permission to enter or remain in the UK because someone formally agreed to support them.

Students

70.  A property that is wholly occupied by full-time students, for example a hall of residence, is exempt from council tax. Most students are not eligible for council tax reduction but some students who are liable for council tax can get support in specified circumstances. See Annex 8 for a full account, including the treatment of student income.

Effective dates

Date entitlement begins

71. For pensioners[footnote24], an applicant’s entitlement to council tax reduction normally begins from the start of the reduction week (Monday to Sunday) which follows the date of application. However, if an applicant becomes liable for council tax for the first time in Oxford and they are entitled to council tax reduction, their entitlement begins from the first day that they are legally liable to pay council tax, providing they apply in that reduction week. For working-age applicants, entitlement to council tax reduction begins from the date of application.

Date from which changes in circumstances take effect

72. For pensioners, changes in circumstances take effect from the Monday following the date of change, apart from these exceptions:

  • changes in an applicant’s income arising from legislative changes affecting rates of income tax, personal tax reliefs, National Insurance contributions, and tax credit rates are ignored for a period of up to 30 weeks;
  • where entitlement to a benefit begins or increases, and the result is either the same amount or an increase in the award of reduction under this scheme, the change takes effect from the date on which it occurs; otherwise, it takes effect from the first day of the following reduction week;
  • where entitlement to a benefit ceases, including a Universal Credit award, the change takes effect from the first day of the reduction week following the day immediately after the benefit ceases;
  • a change in the amount of council tax payable takes effect from the date of change;
  • a change in the amount a person is liable to pay by way of council tax (for example changes to a discount) also takes effect from the date of change;
  • if the change applies to an applicant who now has a partner, or a partner has died, or they have separated, it takes effect from the date of the change;
  • backdated payments of income are generally taken into account over an appropriate period as if they had been paid on time.

For working-age applicants, all changes in circumstances take effect from the date of change.

73. Where a non-dependant joins a pensioner household, or where the non-dependant’s earnings increase, the change to that pensioner’s council tax reduction takes effect 26 weeks after the date on which the change took place.

74. Where an applicant receives an increase in State Pension Credit and, as a result, their award of council tax reduction increases, the change usually takes effect from the week the amount of State Pension Credit alters. However, where an award of council tax reduction decreases, the change either takes effect from the week the authority is notified of the change in State Pension Credit or the date on which State Pension Credit changes if this later.

Application procedure /online applications

75. Only one partner in a couple (or a polygamous marriage) can apply for council tax reduction in respect of the same dwelling. If the partners cannot agree who should apply, the Council will decide for them.

76. Where a person who is liable to pay council tax is unable to act for themselves, and someone has been appointed to act on their behalf (for example an attorney), the person appointed can make an application on behalf of that person. Where there is no-one to act on the person’s behalf, the Council may appoint someone to act. An appointee must be aged over 18 and must apply for the appointment in writing or online. The Council may accept as an appointee someone who has already been appointed by the Department for Work and Pensions to act in respect of a social security benefit. The Council has the power to revoke the appointment at any time and the appointee may resign on giving 4 weeks’ notice. If, subsequently, another person is authorised to act on the applicant’s behalf (for example, an attorney) the former appointeeship ceases. The appointee must take full responsibility for all aspects of the application and is made fully aware by the Council of the duties involved, including the consequences of failing to comply with those duties.

77. An application may be made:

  • in writing; or
  • online; or
  • by telephone, although the applicant will subsequently need to provide a signed statement and any other documentation necessary to support the application.

If an applicant has difficulty in completing a written form, the Council can make alternative arrangements to assist.

78. Universal Credit award notices received from the Department for Work and Pensions are automatically treated as an intention to apply for council tax reduction. Where appropriate the Council will invite the Universal Credit recipient to apply for council tax reduction.

79. An application made in writing must be made to the Council office on a form provided by the Council free of charge. Where an application is made on the correct form but is not properly completed, the Council may ask the applicant to complete the form correctly. Where an application is made in writing but not on the correct form, the Council may either supply the applicant with the correct form or ask for further information and evidence.

80. An applicant may amend or withdraw an application, in writing, at any time before a decision has been made.

81. If an application is made online and the Council considers that all the required information has not been provided, the Council will give the applicant the opportunity to provide the required information.

Date on which an application is made

82. The date to be taken as the date on which the application is made is normally the date the application is received by the Council, or the date the applicant first notified the Council of their intention to apply, if this is followed up within one month by a properly completed application. There are some exceptions to this general rule:

  • if an applicant has been awarded State Pension Credit which includes a guarantee credit, Income Support, income-based Jobseeker’s Allowance, income- related Employment and Support Allowance, or Universal Credit and the council tax reduction application is received within one month of the claim for any of the above-listed benefits, the date of application for council tax reduction is the first day of entitlement to one of those benefits;
  • if an applicant or their partner is in receipt of one of the above-listed benefits when they become liable for council tax for the first time, and the council tax reduction application is received within one month of becoming liable, the date of application for council tax reduction is the date they became liable;
  • where a person’s council tax banding notification is delayed on moving into a new property, and an application for council tax reduction is made within one month of receiving the banding notification, the date of application is treated as the date on which council tax liability begins;
  • where a person’s council tax liability is decided retrospectively (for example following a tribunal decision), and an application for council tax reduction is made within one month of the retrospective decision notification, the date of application is treated as the date on which council tax liability begins;
  • where a couple’s relationship comes to an end either due to separation or the death of one of them and the former partner was entitled to council tax reduction and the application is made within one month of the death or separation, the date of application for council tax reduction is the date of death or separation;
  • where an application is not properly completed and is corrected within one month (or longer if the Council considers reasonable) the date of application is the date on which the first contact is made. If the incomplete application is not corrected within one month or other reasonable period, the date of application for council tax reduction is the date when sufficient information becomes available to decide the application;
  • where for any reason the Council’s online application form is unavailable the date of application is the date on which first contact is made.

Advance applications

83. An applicant may apply up to 8 weeks in advance if they anticipate that they will become liable to pay council tax during that period. The application is treated as made on the day on which liability for council tax begins.

84.Other than where an applicant is a person treated as not being in Great Britain, the Council may treat an advance application as made in the reduction week before the first week of entitlement to council tax reduction. This applies where an applicant is not entitled to council tax reduction in the week after the actual date of application, but the Council considers that they will become entitled within the next 13 weeks (17 weeks for a pensioner) unless there is a change in circumstances.

Date applications are treated as made and backdating

85. Where a pensioner applies and qualifies for council tax reduction, their application is treated as made 3 months before it was actually made (effectively all applications from pensioners are automatically backdated for a period of 3 months). Where an applicant applies for council tax reduction within one month of being awarded State Pension Credit including the guarantee credit, the three-month period cannot go back any earlier than the date of their State Pension Credit claim.

86. Where a working-age applicant shows a good reason for not making an application earlier, the application can be backdated for up to a maximum of 1 month. The application is backdated to either the first day continuous good cause is established; or the day 1 month before the date of application; or the day 1 month before the date the request for backdating was made, whichever is the latest.

Evidence and information

87. Where appropriate, the Council can accept evidence submitted online or by telephone to support an application.

88. An applicant to council tax reduction must provide a National Insurance number for themselves and if appropriate, others for whom they are applying, or evidence that they have applied for a National Insurance number. This requirement does not apply to a:

  • child or young person;
  • person from abroad;
  • person subject to immigration control.

89. An applicant to council tax reduction must provide such evidence in support of their application as the Council considers reasonable, within one month of being notified of their duty to do so. This does not apply to an applicant who is a pensioner in respect of specified income which is ignored in the calculation of council tax reduction or whose income has been verified by The Pensions Service, where the Council has been notified of that income. The Council informs the applicant of their duty to notify any change of circumstances, and if asked by the applicant, which change of circumstances must be notified.

90. The Council can require an applicant to whom council tax reduction has been awarded (or any partner) who is at least the qualifying age for State Pension Credit, to supply information about pension fund holders and suppliers of pension fund schemes.

91. Before a decision has been made on an application, an applicant may amend or withdraw the application by notifying the Council either in writing, by electronic communication or by telephone.

Duty to notify changes in circumstances

92. An applicant, or a person acting on behalf of the applicant, has a duty to report changes in circumstances either before an application has been decided by the Council or after council tax reduction has been awarded. The changes to be reported are those which the applicant might reasonably be expected to know would affect entitlement, and the changes must be notified in writing, by telephone or online within a period of one calendar month from the day when the change occurs, or as soon as reasonably practicable afterwards. Some types of change of circumstance do not need to be reported:

  • changes in the amount of council tax payable to the council;
  • changes in the ages of the applicant and their family or any non-dependants except where someone ceases to be a child or young person;
  • changes which affect the amount of Income Support, income-based Jobseeker’s Allowance, income-related Employment Support Allowance or Universal Credit but not the amount of council tax reduction, except where one of the benefits listed above ceases.

93. An applicant who receives State Pension Credit and who has been awarded council tax reduction does not need to report changes in circumstances except:

  • any changes relating to a non-dependant’s income or residency;
  • any absence from the home exceeding or likely to exceed 13 weeks, or 4 weeks if absent abroad.

94. Where State Pension Credit comprises only of Savings Credit, the applicant does not need to report changes in circumstances except the changes listed in paragraph 93 above and in addition:

  • changes affecting a child living with them which may result in the amount of council tax reduction (but they do not need to report changes in the age of the child);
  • a change in an applicant’s capital which takes, or may take, the total to more
  • than £16,000;
  • certain changes in the income or capital of a non-dependant or partner.[footnote25]

Decisions and awards

95. Once the Council is satisfied that an application for council tax reduction has been completed in the proper manner together with all the required evidence and information, it will make the decision within 14 days or as soon as practicable thereafter.

96.  Having made the decision on an application, the Council will notify the applicant, or a person appointed to act on behalf of the applicant, immediately or as soon as reasonably practicable afterwards. In the case of any other decision, the Council will notify the applicant within 14 days or as soon as reasonably practicable afterwards. The notification of a decision on an application is normally in the form of a notification letter together with a revised council tax bill which includes:

  • a reminder about the duty to report changes in circumstances and an explanation of the consequences of failing to do so;
  • examples of changes that might affect entitlement to council tax reduction or its amount;
  • information about the effect of the decision on the applicant’s council tax liability;
  • information about appeal procedures.

97. A new council tax bill will be issued by the Council, either by email or by post. This will include the amount awarded as a council tax reduction and information about the appeals process.

98. Where an applicant is entitled to a reduction under this scheme, their council tax liability is reduced accordingly. If this is not possible, the Council will make a payment to the applicant of the amount of the reduction to which they are entitled, rounded if necessary to the nearest penny. Where an applicant is jointly liable for council tax with other residents (see paragraph 41), any payments will be made to the person who is entitled to the reduction.

99. Where an applicant is entitled to a reduction which exceeds the amount of their liability, the Council will pay any outstanding reduction to the applicant, if they wish, or will credit their council tax account for any subsequent year. If the applicant has ceased to be liable for council tax, and has no outstanding liability, the Council will pay any reduction due within 14 days or as soon as practicable afterwards.

100. Any payment of council tax reduction is made to the applicant or, where appropriate, to the person who has been appointed to act on behalf of the applicant (see paragraph 76).  Where an award of council tax reduction is due but the applicant has died, the Council will credit any outstanding entitlement to the applicant’s council tax account. The Council will pay any remaining balance to the executor or administrator as soon as practicable.

101. Subject to paragraph 100, where the Council revises an award of council tax reduction and decides that the applicant is entitled to an increased award, the Council will reduce the next and any subsequent payments the applicant is liable to make. Where this is not possible or the applicant so requests, the Council will make a payment within 14 days of the revised decision or as soon as possible afterwards.

102. When the Council revises an award of council tax reduction and decides that the applicant is entitled to an increased award, any amount previously awarded will be offset against any arrears due under the new award.

Excess reductions

103. Where an applicant has received an award of council tax reduction in excess of their entitlement, the Council may recover the excess amount. This applies in all circumstances except where a Council officer,[footnote26] or a person acting for the Council, has made a mistake which the applicant could not reasonably have known about. Where an applicant receives a revised decision which decreases their council tax reduction, any excess amount credited to their account after the date of notification of that revised decision is recoverable.

104. Any underlying entitlement to council tax reduction may be offset against any excess amount of council tax reduction, when calculating the sum to be recovered.

Use of information

105. Where it is lawful to do so, the Council uses information provided by the Department for Work and Pensions and His Majesty’s Revenue and Customs in order to calculate entitlement to council tax reduction. Similarly, the Council shares information with those departments when it is required to do so.

106. The Council may receive, obtain, verify, record and store information relating to applications for council tax reduction, from:

  • the applicant;
  • other persons in connection with applications;
  • other local authorities;
  • central government departments.

107.The Council may forward information to anyone in the Council or others authorised to act on behalf of the Council, in processing applications for council tax reduction.

Revisions and written statements

108. The Council may change or further change a decision at any time.

109. The Council may terminate an award of council tax reduction, in whole or in part, if the Council considers that:

  • the conditions of entitlement have not been met;
  • the applicant has failed to provide information requested;
  • the application is fraudulent and/or there is deliberate misrepresentation of the facts in order to take advantage of the scheme.

110. An applicant who receives the Council’s notification of a decision, or a revised decision, may, within one month of the date of the notification of that decision, request in writing that the Council provides a written statement setting out the reasons for its decision. The Council will send this explanation to the applicant within 14 days of a request, or as soon as reasonably practicable afterwards.

Appeals

111. If an applicant is dissatisfied with the Council’s decision on entitlement to council tax reduction or the amount awarded, they may write (including by email) to the Council setting out why they are dissatisfied. The Council will then consider the matter and notify the applicant in writing (usually by email), either that they do not have a case stating the reasons why, or that action has been taken to address their concerns. If the applicant is still dissatisfied, or if the Council does not address their concerns within 2 months, they may appeal to the Valuation Tribunal.

Discretionary awards

112. The Council may use its discretion to reduce council tax liability because of exceptional hardship.[footnote27] This is irrespective of whether an application has been made for council tax reduction under the main scheme, described in this document.

113. An application may be made in writing, online or by telephone (although the applicant will subsequently need to provide a signed statement and any other documentation necessary to support the application).

Electronic communication

114. The Council may use electronic communication (for example via computer networks or mobile phones) in administering council tax reduction and may receive electronic communications including applications online, subject to the following conditions:

  • there is an explicit authorisation given by the Council’s chief executive;
  • there is an approved method of authentication;
  • approved forms are used;
  • records are maintained in a way specified by the chief executive.

115. Any applications which are not submitted in the approved manner are treated as invalid. The Council may authorise another person or persons to act as intermediaries in connection with the delivery of information electronically and its authentication.

116. Any information delivered electronically is treated as if it were delivered in any other way required by the Council’s scheme if the above conditions are met. Information is treated as not delivered until it is accepted by the Council’s official computer system. If, for legal reasons, it becomes necessary to prove the identity of the sender or recipient of information sent or received electronically, it is presumed to be the person named on the official computer system. Similarly, if it is necessary to prove that information sent electronically has actually been delivered to the Council, it is treated as received if it is recorded on the official computer system. Similarly, if it is not recorded as received on the official computer system it is treated as not received. And the time, date and content of any electronic communication is presumed to be that recorded on the computer system.

Fraud and compliance

117. The Council is determined to combat fraud in order to protect both its finances and the wider interests of all taxpayers. The Council makes every effort to prevent and detect fraud by using due diligence and will take appropriate action where an application is found to be fraudulent or misrepresented to take advantage of the scheme. The Council recognises that the use of simple cautions, penalties and prosecutions have a key role to play in deterring offenders.

118. In order to minimise the opportunity for fraud, the Council will:

  • verify applications for council tax support rigorously;
  • employ sufficient staff to meet its commitment to combat fraud;
  • actively tackle fraud where it occurs;
  • co-operate with the Department for Work and Pensions and His Majesty’s Revenue and Customs in joint-working, including prosecutions and sharing data where appropriate and legal; the work may include joint investigations with them and, where appropriate, assistance in any prosecution. The Council may also work with other organisations such as Thames Valley police;
  • in all cases seek to recover all outstanding council tax.

119. In order to ensure that the above actions are carried out successfully, the Council will put in place all the required administrative policies, procedures and processes. Any fraud investigation will be conducted in accordance with the principles and approach set out in the Council's Corporate Enforcement Policy. In all cases where fraud is identified the Council will consider commencing legal proceedings.

Footnotes

21. The Immigration (European Economic Area) Regulations 2016. These regulations were repealed in 2020 but some provisions, including definitions, were retained under the Citizens’ Rights (Application Deadline and Temporary Protection) (EU Exit) Regulations 2020. Return to where footnote 21 is referenced ↩

22. See regulation 12 of the Council Tax Reduction) Prescribed Requirements (England) Regulations 2012, paragraphs 4, 4A and 4B, for a full list of circumstances where an applicant has been given leave to enter or remain in the UK but who does not satisfy the habitual residence test. Return to where footnote 22 is referenced ↩

23. As defined in sections 2 and 3ZA of the Immigration Act 1971. Return to where footnote 23 is referenced ↩

24. The policy on effective dates for pensioners is set out in paragraphs 45 and 46 of Schedule 1 to the Council Tax Reduction Schemes (Prescribed Requirements) (England) Regulations 2012 which the Council has no discretion to alter. Return to where footnote 24 is referenced ↩

25. See paragraph 9 (8) (c) of Schedule 8 to the Council Tax Reduction Schemes (Prescribed Requirements) (England) Regulations 2012. Return to where footnote 25 is referenced ↩

26. This also includes an officer of, or a person acting for, the Department for Work and Pensions or His Majesty’s Revenue and Customs. Return to where footnote 26 is referenced ↩

27. Under section 13A(1)(c) of the Local Government Finance Act 1992, as amended. Return to where footnote 27 is referenced ↩

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