This page should be read in conjunction with our Introduction to Housing and Council Tax Benefits page.
If you are housebound or unable to visit your local office because you are infirm or have a disability we can arrange a home visit if you request this.
If you are married and normally live with your partner or are unmarried but live with your partner as husband and wife you will normally be responsible for the same council tax bill. Only one claim should be made but signed by both of you.
Top of Page
How Your Benefit Is Assessed
The amount of benefit you may receive depends on four basic things:
-
-
The amount of any
savings you (and your partner) have -
Your
personal circumstances (such as your children living in your household, being disabled or anyone else who lives with you) -
Benefit is assessed using rules agreed by Parliament. The benefit awarded to you is intended to help with the cost of your council tax, not other housing costs although if you do pay rent you may be entitled to Housing Benefit. The maximum council tax benefit that can be awarded is 100% of your council tax charge but water and sewerage rates are not included in this. You must pay these charges yourself.
Top of Page
Reduced Council Tax Benefit
Even if you are entitled to 100% maximum rebate based on your income, having another adult, who is not your partner, living in your household can reduce the amount you receive i.e. a son/daughter or an elderly relative. These are called non-dependants.
Depending upon their age and circumstances a deduction may be made from your council tax benefit. The rates of these deductions are set by Parliament each year.
Deductions are not made if:
-
You or your partner are blind or in receipt of the care component of Disability Living or Attendance Allowance
-
The non-dependant is aged 16 – 17
-
The non-dependant is a Skillseeker, student, long term hospital in-patient or in legal custody
-
The non-dependant receives Income Support/Income based Jobseekers Allowance
You must include on your council tax benefit claim form everyone living with you. You must tell us straight away if anybody leaves or joins your household or has a change in their financial circumstances.
Top of Page
Second Adult Rebate
You may be able to claim rebate because your non-dependent(s) has a low income. Your own income and capital are not taken into account in calculating any entitlement to second adult rebate. For example, if you pay council tax but do not qualify for benefit because of your own income, then your daughter who is claiming income support moves back home you may claim second adult rebate in respect of her.
If you share your home with a person/persons who are over 18 years of age and are:
you can make a claim for second adult rebate.
If you are entitled to second adult rebate and council tax benefit (because of your own income) the council will compare the two amounts of benefit and award you the highest one. We will tell you when this happens.
Top of Page
How Your Benefit Is Paid
Any benefit you are entitled to will be credited to your council tax account from the start date of your claim to the end of the current financial year, based upon your circumstances at the time of your application for benefit.
Your will be sent a council tax bill that will show the amount of benefit you have been awarded. This will be deducted from your council tax charge. Water and sewerage rates are not eligible for council tax benefit and you must pay these even if you are awarded 100% of your main council tax charge.
Because benefit is credited in advance to your council tax account it is very important that you tell us about any
changes in your circumstance.
Money Coming Into Your Household
Any earnings you (and your partner) receive is added to any other income you have.
Earnings are:
-
Gross pay less tax, national insurance contributions and half of any amount paid to a private or occupational pension scheme. Certain childcare costs may also be deducted.
-
Self employed earnings after any allowable business expenses are deducted
Other income includes:
Income from Disability Living Allowance or Attendance Allowance that you (or your partner) receive is disregarded but should still be declared on your rebate application form as, in certain circumstances, it may mean you receive a higher rate of housing benefit.
Back to How Your Money is Paid
Savings
If you (and your partner) are aged 59 or less and your total capital is over £6000, for every unit of £250, or part unit, £1 is added to your weekly income.
For example:
Capital held = £6950. The first £6000 is disregarded but there are three units of £250 (£750) and one part unit (£200) remaining so £4 is added to your total weekly income.
If your (and your partner's) combined savings are more than £16,000 you will not qualify for benefit.
If you (and your partner) are aged 60 or over and your total capital is over £6000, for every unit of £500, or part unit, £1 is added to your weekly income.
For example:
Capital held = £7000. The first £6000 is disregarded but there are two units of £500 remaining so £2 is added to your total weekly income.
For claimants who qualify for Pension Credit the following capital rules apply:
|
Entitled to Guarantee Credit |
No Capital Limit |
|
Entitled to combined Guarantee & Savings Credit |
No Capital Limit |
|
Entitled to Savings Credit only |
£16,000 upper limit applies |
For claimants who have no entitlement to Pension Credit the £16,000 capital limit applies.
Back to How Your Money is Paid
Personal Circumstances
Each year Parliament sets amounts to be used by local authorities for working out benefit calculations. These are called personal allowances and premiums.
Personal allowances depend upon:
Premiums are extra sums of money intended to recognise the special needs of:
The total income for your household (less any disregarded income) is compared to the total allowances and premiums appropriate for your personal circumstances. If this amount is less than their combined total you will qualify for maximum housing benefit. If it is more your housing benefit will be reduced
Back to How Your Money is Paid
The maximum amount of council tax benefit payable is based on your basic charge less any discounts awarded. Remember you will always have to pay the water and sewerage charges.
You may also find our other Council Tax pages of interest.
Search NorthWeb
