About Council Tax Reduction | About Council Tax Reduction | Sevenoaks District Council

About Council Tax Reduction

Council Tax Reduction helps people on a low income, in or out of work, or in receipt of state benefits. The amount you can receive depends on your income and circumstances and is shown as a discount on your Council Tax rather than being paid as a benefit.

Pension age people

The Government has set the rules we must use to calculate Council Tax Reduction for applicants of pension credit age. Please be aware the name of the scheme has changed it was previously known as Council Tax Support.

Working age people

Following an eight week public consultation in 2018, and having considered the responses and assessed the impact of the proposed changes, we have approved a new scheme for working age people. This will be known as the local Council Tax Reduction scheme (currently known as the Council Tax Support scheme) and will come into effect from 1 April 2019.

Under this scheme, working age applicants must pay at least 20% of their Council Tax charge. The support they are entitled to is based on their net income and that of their partner, if they have one.

The income bands are set out in the table below:

Weekly income levels

Band

Discount

Single person

Couple with no children or young person

Couple or lone parent with one child/young person

Couple or lone parent with two or more children/young persons

1

80%

Passported Benefit

1

80%

£0 - £79.99

£0 - £119.99

£0 - £179.99

£0 - £239.99

2

60%

£80 - £129.99

£120 - £169.99

£180 - £229.99

£240 - £299.99

3

40%

£130 - £179.99

£170 - £219.99

£230 - £279.99

£300 - £349.99

4

20%

£180 - £259.99

£220 - £299.99

£280 - £379.99

£350 - £449.99

5

0%

£260+

£300+

£380+

£450+

The basics of the scheme for working age people are:

  • The maximum discount that can be paid is 80%. Therefore, people liable for Council Tax must pay at least 20%.
  • Anyone with savings above £6,000 will not qualify.
  • Applicants will receive a discount of 80%, 60%, 40%, 20% or no discount, depending on the level of their income and the income band they fall into.
  • Those receiving a passported benefit – i.e. Income Support, Jobseeker’s Allowance (income-based) or Employment and Support Allowance (income-related) will automatically be placed into Band A (ie 80% discount).
  • The income ranges above are weekly amounts.
  • Examples of income are earnings, self-employed earnings, tax credits, pensions, student grants/loans, Jobseeker’s Allowance (contributions), Employment and Support Allowance (contributions).
  • Net weekly income will be taken into account when calculating Council Tax Reduction.
  • Net income means once income tax, national insurance and half of any personal pension is deducted from a person’s earnings.
  • To support incentives to work, £25 per week will be disregarded from the applicant’s net earnings and only one disregard shall be applied per claim.
  • Income from Disability Living Allowance, Personal Independence Payments, Armed Forces Independence Payments, Child Benefit, Child Maintenance, and War Disablement Benefits will continue to be disregarded when calculating Council Tax Reduction.
  • Carer’s Allowance will also be disregarded in full.
  • Extra amounts may be disregarded from your income if someone in your family is disabled e.g. if your child receives Personal Independent Payment, an extra £64.19 will be disregarded from you income.

View details of the local scheme

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