Council Tax Support

From 1 April 2020, there will be a new Council Tax Reduction Scheme called Council Tax Support (CTS). Council Tax Support is a type of benefit. If you’re eligible for it, we will reduce the amount of council tax you need to pay. If you’re not working or earn less than £86.00 per week, you won’t pay anything at all unless a young adult aged 25 or above is living with you and earning over £86.00 per week*. If you’re on Universal Credit, you’ll need to make a separate claim for Council Tax Support. 

If you were on the Council Tax Reduction Scheme previously, you’ll automatically be moved onto CTS but it works slightly differently to the previous Scheme so have a read of this page to find out how the changes might affect you. 

Please note though that if you’re a pensioner, the support you receive will not change.

How Council Tax Support can help you 

  1. A change in support for families with young adults living at home: If you’re a parent or carer and have a young adult living with you, we won’t reduce the amount of council tax support you receive until they reach the age of 25. However, we will ask you to pay something towards council tax if young adults aged 25 and over are living with you and earning over £86 a week.
  2. Financial support for working families with children: If you work at least 16 hours a week, tell us what your childcare costs are because we will take them into account when we calculate your discount and the amount we ask you to pay.
  3. Financial support for residents with disabilities: If you currently receive a disability benefit like Personal Independence Payment (PIP) or Disability Living Allowance (DLA), or if you look after someone and receive Carer’s Allowance, you’ll get more support to pay your council tax than residents who don’t receive a disability benefit.
  4. We’ve made the scheme fairer for residents on Universal Credit: If you’re on Universal Credit, you’ll be able to backdate your CTS claim to the first day you started receiving UC 
  5. We’re introducing income bands: If your income goes up and down, as long as your income stays within the same band, the amount of council tax you pay won’t change. 

*A deduction equivalent to 30% of your council tax will be made to your Council Tax Support award for anyone, except your partner, who lives with you and is aged over 25 years old and earns more than £86 per week. This is known as a non-dependent deduction

How will the income bands work?

This table will give you an idea of how much council tax you’ll be asked to pay based on your earnings and individual circumstances. 

The bands are based on London Living Wage (LLW) and will increase as LLW increases.

Your weekly earnings (figures in this column are inclusive)

You don’t have children

You do have children

You’re disabled or a carer

Your discount

The amount of council tax you’ll pay

Your discount

The % you’ll pay

Your discount

The % you’ll pay

Not working

You’ll get 100% of your council tax paid for you

You won’t pay anything

You’ll get 100% of your council tax paid for you

You won’t pay anything

You’ll get 100% of your council tax paid for you

You won’t pay anything

You earn less than £86.00 per week

You’ll get 100% of your council tax paid for you

You won’t pay anything

You’ll get 100% of your council tax paid for you

You won’t pay anything

You’ll get 100% of your council tax paid for you

You won’t pay anything

You earn between £86.00 to £171.99 per week

You’ll get a 55% reduction in your council tax

You’ll pay 45% of your council tax

You’ll get a 65% reduction in your council tax

You’ll pay 35% of your council tax

You’ll get a 85% reduction in your council tax

You’ll pay 15% of your council tax

You earn between £172.00 to £386.99 per week

You’ll get a 35% reduction in your council tax

You’ll pay 65% of your council tax

You’ll get a 45% reduction in your council tax

You’ll pay 55% of your council tax

You’ll get a 55% reduction in your council tax

You’ll pay 45% of your council tax

You earn between £387.00 to £425.69 per week

You won’t get a reduction in your council tax

You’ll pay all of your council tax

You’ll get a 30% reduction in your council tax

You’ll pay 70% of your council tax

You’ll get a 45% reduction in your council tax

You’ll pay 55% of your council tax

You earn between

£425.70 to £483.74 per week

You won’t get a reduction in your council tax

You’ll pay all of your council tax

You’ll get a 15% reduction in your council tax

You’ll pay 85% of your council tax

You’ll get a 30% reduction in your council tax

You’ll pay 70% of your council tax

 

*Earnings are based on the gross payment before Tax, National Insurance and Pension deductions are taken. We do not count any military compensation payments as earnings.

Child care costs and savings

If you pay for childcare then part of this cost can be deducted from your earnings. This can be up to £175 (for one child) or £300 (for two or more children) per week for the following categories:

  • lone parents who work at least 16 hours per week.
  • couples who both work at least 16 hours per week.
  • couples if one of them works at least 16 hours per week and the other one is incapacitated, or in hospital, or in prison (whether serving a sentence or on remand)

To qualify the child or children will need to be with:

  • a registered child minder, nursery or play scheme.
  • a child minding scheme for which registration is not required (e.g. run by a school, local authority).
  • childcare approved for working tax credit purposes.
  • any out-of-school-hours scheme provided by a school on school premises or by local authority – in this case only the child must be aged 8 or more.

You will not qualify if the child is 15 years old or more. If the child is disabled the age would be 16 years.

Capital

If you or your partner have savings of over £16,000 you will not be eligible to claim Council Tax Support.

What do we mean by capital?

Capital means any savings, investments or property owned by you and your partner (if you have one). Capital includes:

  • cash savings
  • savings in banks, building societies or the Post Office
  • money in current accounts
  • Individual Savings Accounts (ISAs)
  • premium bonds and income bonds
  • National Savings Certificates
  • stocks, shares, unit trust holdings, government securities and bonds
  • lump sums such as redundancy payments, insurance payments and back payments of Social Security benefits
  • tax refunds
  • money invested in a business and business assets
  • property, such as a house you own but don't live in
  • land
  • money held in trust
  • money you have borrowed

Help with your Council Tax Support

How can you get support to move onto Council Tax Support?

We know that some residents will be asked to pay more or less towards their council tax than in previous years and we want to support you to adjust to these changes. Below is a list of our partner organisations who you can speak to for advice based on your circumstances.

Need help to understand your Council Tax Support letter?

Call us on 020 7974 4444 to ask questions over the phone or to make an appointment to speak to someone in person.

Want to find better-paid work or need support to help your adult child find a job, gain work experience or learn more about training opportunities?

If you need advice to manage money or debt, or you’re being asked to pay a different amount and need support to make this change, three of our partner organisations can help you with these issues, or you can contact us directly on 020 7974 4444.

1. Money Advice Service
0800 138 1677
moneyadviceservice.org.uk

2. Mary Ward Legal Centre
020 7831 7079
marywardlegal.org.uk

3. Citizens Advice Camden
0300 330 1157
camdencabservice.org.uk