Council Tax
This information is correct as of April 2008.
If you receive a means tested benefit, e.g. Income Support, Pension Credit (guarantee credit) or Income Based Jobseeker’s Allowance, you should receive full council tax benefit. This will mean that you do not have to pay any council tax, as your whole bill will be covered by the council tax benefit you receive.
You should claim as soon as you think you need to. Council tax benefit can only be backdated in special circumstances. If you feel your claim should be backdated you will need to show why you had a good reason for not claiming earlier. If you are over 60 your council tax benefit can be backdated for up to 52 weeks providing you qualified for benefit.
You should notify your local council of any change of circumstances as soon as you are aware of it. You may be entitled to more benefit or your benefit may be reduced or stop altogether. If you do not notify them of a change of circumstances that affects your entitlement to your council tax benefit then you could be overpaid benefit which you may have to repay.
If you are unhappy with the decision on your claim you can:
If you want the decision looked at again, or if you want to appeal against it, you must ask for this, in writing, within one month of the date on the decision letter. To appeal you should use an appeal form, GL24, which is available from any benefit office and should be completed and returned to the office that made the decision. Welfare Rights can assist you with the appeal process and represent you at an appeal hearing. If you would like advice about appealing a decision please contact us. You might also want to look at our factsheet no. 4, ‘Appealing a Decision’.
Second Adult rebate is a reduction in your council tax based on the income of the people who live with you. It is credited to your council tax bill, reducing the amount that you will have to pay. The amount of rebate will be 25%, 15% or 7.5% of the council tax depending on the gross income of the second adult(s).
You will only qualify for second adult rebate if all of the following apply:
The person who is liable for the council tax should claim second adult rebate and complete the forms. Although the liable person must make the claim, it is only the income of the second adult(s) that needs to be disclosed. Proof of the second adults’ gross income and savings will have to be sent in with the completed form.
live alone:
Carers can also be disregarded where:
You will need to inform the Council of your circumstances for the discount to be considered. It will be applied to your Council Tax Bill.
These rooms do not have to have been specially built or adapted they just must be of major importance to the persons well being because of their disability. The reduction usually reduces your council tax bill to the next lowest valuation band. So if your home is in band C your bill would be reduced to band B. If your home is in the lowest band, band A, your bill will be reduced by one sixth. The person who is liable for the council tax has to make the application. This can be backdated if it is appropriate. Forms can be obtained from your local district council. The reduction usually reduces your council tax bill to the next lowest valuation band. So if your home is in band C your bill would be reduced to band B. If your home is in the lowest band, band A, your bill will be reduced by one sixth. The person who is liable for the council tax has to make the application. This can be backdated if it is appropriate. Forms can be obtained from your local district council.
This is information on your rights and responsibilities and is to be used as guidance and not legal advice. Information correct as of April 2008.
CTB and Discounts Apr 08.pdf (4 pages, 345kb)
It is estimated that more than two million households struggle to pay their council tax each year. There are several ways that you could reduce your council tax:
- Council tax benefit
- 2nd Adult rebate
- Discounts
- The disability reduction scheme
What is Council Tax Benefit?
Council Tax Benefit is a means tested benefit that helps you to meet your Council Tax liability. In County Durham you can claim Council Tax Benefit from your local district/borough council. It comes in the form of a credit that is shown on your council tax bill.How much Council Tax Benefit will I get?
In order to work out how much council tax benefit you will receive, the local district/borough council will take into account all the relevant circumstances of you and your family. This will include the size of your family, income and savings of your family and whether anyone lives with you who is not included in your family, e.g. friend, grown up child. The local council will compare your weekly income against an applicable amount that is made up of a personal allowance and any relevant premiums. Your capital (including savings and property, but not the value of the house you live in) is converted to a tariff income and added to your weekly income. The first £6000 of your savings is ignored. If you have capital over £16,000 you will not be entitled to council tax benefit but this capital limit does not apply if you get Pension Credit (guarantee credit). Here are some examples:- A couple aged 65 with a bill of £1,049 pa, no disabilities, a weekly income of £250, and savings of £10,000, could be entitled to £606 in annual council tax benefit.
- A single person with a bill of £786.75 pa, working part time with a weekly income £120 and savings of £3,500 could be entitled to £219.96 in annual council tax benefit.
- A couple aged 33, with two children, and a bill of £1,049 pa, one partner working full part-time with a weekly income of £310 and savings of £8,000 could be entitled to £268.11 in annual council tax benefit.
If you receive a means tested benefit, e.g. Income Support, Pension Credit (guarantee credit) or Income Based Jobseeker’s Allowance, you should receive full council tax benefit. This will mean that you do not have to pay any council tax, as your whole bill will be covered by the council tax benefit you receive.
You should claim as soon as you think you need to. Council tax benefit can only be backdated in special circumstances. If you feel your claim should be backdated you will need to show why you had a good reason for not claiming earlier. If you are over 60 your council tax benefit can be backdated for up to 52 weeks providing you qualified for benefit.
You should notify your local council of any change of circumstances as soon as you are aware of it. You may be entitled to more benefit or your benefit may be reduced or stop altogether. If you do not notify them of a change of circumstances that affects your entitlement to your council tax benefit then you could be overpaid benefit which you may have to repay.
If you are unhappy with the decision on your claim you can:
- ask the local council to look again at the decision. This is called a revision, and you can also
- ask for an explanation of the decision or a written statement of reasons; or you can
- appeal the decision to an independent appeal tribunal administered by the Appeals Service.
If you want the decision looked at again, or if you want to appeal against it, you must ask for this, in writing, within one month of the date on the decision letter. To appeal you should use an appeal form, GL24, which is available from any benefit office and should be completed and returned to the office that made the decision. Welfare Rights can assist you with the appeal process and represent you at an appeal hearing. If you would like advice about appealing a decision please contact us. You might also want to look at our factsheet no. 4, ‘Appealing a Decision’.
Rebates and Discounts
Second Adult rebateSecond Adult rebate is a reduction in your council tax based on the income of the people who live with you. It is credited to your council tax bill, reducing the amount that you will have to pay. The amount of rebate will be 25%, 15% or 7.5% of the council tax depending on the gross income of the second adult(s).
You will only qualify for second adult rebate if all of the following apply:
- There is more than one person in the household
- The second adult is over 18 and does not have to pay rent to the liable Council Taxpayer.
- They are not your partner and do not have joint liability with you
- The second person(s) has a low income
- The liable person does not qualify for more Council Tax Benefit than the amount of “second adult rebate”
The person who is liable for the council tax should claim second adult rebate and complete the forms. Although the liable person must make the claim, it is only the income of the second adult(s) that needs to be disclosed. Proof of the second adults’ gross income and savings will have to be sent in with the completed form.
Discounts and ‘disregarded’ people
If you are considered as living alone then you can get a single persons’ discount of 25% off your council tax bill. The following people are disregarded for council tax purposes and therefore you may qualify for this discount even if you do notlive alone:
- Someone who may be considered severely mentally impaired and receives Incapacity Benefit or Attendance Allowance or the middle or higher rate care component of Disability Living Allowance and has a certificate confirming the diagnosis from a medical practitioner.
- Anyone under 18.
- Any 18 or 19 years old for whom you receive Child Benefit.
- School or college students under 20 who study over 12 hours a week during term time.
- University students if they study for 21 hours or more a week for 24 weeks or more in a year.
- Student nurses.
- Foreign language assistants.
- Diplomats and their spouses.
- Members of some international organisations or visiting forces.
- Apprentices doing an NVQ and who are subject to pay limitations.
- Education leavers under 20 years old if they left after 30th April but only until the following 31st October.
- Trainees under 25 who are on work-based Training for young people.
- Members of a religious community.
- Spouses of overseas students.
Carers can also be disregarded where:
- The resident Carer is not the partner, or the parent of someone under 18, who is being cared for. They must provide care for 35 hours a week and person being cared for must be entitled to the higher rate of either Attendance Allowance (including Constant Attendance Allowance) or the care component of Disability Living Allowance.
- The resident Carer is employed by you for you at least 24 hours a week, following an introduction from the local authority, a charity or government department, and not paid more than £44 per week.
You will need to inform the Council of your circumstances for the discount to be considered. It will be applied to your Council Tax Bill.
The Disability Reduction Scheme
If anyone who is resident in your household is considered substantially and permanently disabled you may be eligible for a disability reduction on your council tax. Your home will have to meet one of the following conditions:- A second bathroom or kitchen is needed by the person.
- A room (other than a kitchen or a bathroom or toilet) is needed and mainly used by the person, for example, a dining room that is now a downstairs bedroom
- There is enough space in your home for the person to use a wheelchair, which is needed indoors.
These rooms do not have to have been specially built or adapted they just must be of major importance to the persons well being because of their disability. The reduction usually reduces your council tax bill to the next lowest valuation band. So if your home is in band C your bill would be reduced to band B. If your home is in the lowest band, band A, your bill will be reduced by one sixth. The person who is liable for the council tax has to make the application. This can be backdated if it is appropriate. Forms can be obtained from your local district council. The reduction usually reduces your council tax bill to the next lowest valuation band. So if your home is in band C your bill would be reduced to band B. If your home is in the lowest band, band A, your bill will be reduced by one sixth. The person who is liable for the council tax has to make the application. This can be backdated if it is appropriate. Forms can be obtained from your local district council.
This is information on your rights and responsibilities and is to be used as guidance and not legal advice. Information correct as of April 2008.
CTB and Discounts Apr 08.pdf (4 pages, 345kb)