Council tax support

A local authority can provide council tax support to a claimant by awarding:[1]

• a council tax reduction through the authority's scheme

• a discretionary reduction to the claimant's council tax bill

A claimant can apply for a discretionary reduction if they cannot meet their council tax liability after a council tax reduction. The local authority has the power to reduce a claimant's council tax liability to nil.[2]

An authority must consider every application for discretionary help on its merits.

A local authority cannot award a discretionary housing payment (DHP) to help a claimant meet a shortfall between council tax support and their council tax liability.

Each local authority administers its own council tax reduction scheme.[3]

Regulations set out what authorities must include in their council tax reduction scheme, including how the authority should assess a claimant's income and capital.[4] Minimum procedural requirements have been set to apply nationally.[5]

Guidance for local authorities

The Government has published council tax reduction scheme guidance for local authorities.

A claimant might be eligible for council tax support if they are on a low income or receiving certain benefits such as universal credit.

Authorities set their own eligibility criteria for their local schemes.

Pensioners

Local authorities must include provisions for pensioners in their schemes.[6] Pensioners with more than £16,000 in capital are not eligible unless they are in receipt of the guarantee credit element of pension credit.

A pensioner is a person who is of the age to qualify for pension credit and they or their partner are not in receipt of:[7]

• universal credit

• income support

• income-based jobseeker's allowance

• income-related employment and support allowance

Use the Gov.uk state pension calculator to find out the age a person qualifies for pension credit.

Public sector equality duty

Council tax support schemes must comply with the public sector equality duty.[8]

The Government has stated that vulnerable groups should be protected as far as possible. There is no definition of vulnerable groups in the legislation. It is for a local authority to decide which groups are protected from the effect of any cuts in the level of support under its own scheme.

The High Court found that a scheme that required all working-age claimants to pay at least 15 per cent of their council tax liability, regardless of disability or age, did not amount to unlawful discrimination. The Court found that the authority took into account the scheme's impact on disabled people. The council provided discretionary support in any case of exceptional hardship.[9]

A claimant with capital of over £16,000 will usually not be eligible for council tax support, unless they receive certain benefits such as the guarantee credit element of pension credit.

Some people from abroad are not eligible for council tax support, including people:[10]

• subject to immigration control, with some exceptions

• not habitually resident in the Common Travel Area

Many people from abroad might be eligible. People not excluded from receiving council tax support are broadly the same as people eligible for housing assistance.

A British citizen who has lived abroad has a right to reside in the UK but if they fail the habitual residence test they are not eligible for council tax support.

A claimant can apply to their local authority for council tax support, including for a discretionary reduction.

Gov.uk has a tool to apply for council tax reduction.

The claimant might need to provide information the authority needs to make a decision, including details of income, capital and expenditure.

The claimant might need to provide bank statements to support their application if they have a bank account. Find out more about how to open and manage a bank account.

There is no set amount of council tax support.

Each local authority operates its own scheme so the amount of support varies and can depend on factors including the claimant's:

• age

• income

• savings

• eligibility for benefits

Some people, including pensioners receiving the guarantee credit element of universal credit, might get their council tax paid in full.

The local authority must inform the claimant of its council tax support decision in writing within 14 days or as soon as reasonably practicable. The letter must inform the claimant of their requirement to report any relevant changes of circumstances, the implications if they do not do this, and how to appeal the decision.[11]

A claimant can ask the local authority to review a council tax support decision if they think it is unfair.[12]

Appeal to the Valuation Tribunal Service

The claimant has a right to appeal to the Valuation Tribunal Service on any decision that the claimant has a liability for council tax, if:

• the authority does not allow the claimant's review

• the claimant is not satisfied with the steps the authority is taking to resolve their grievance

• two months have passed since the claimant submitted their review and the authority has not issued its decision

A claimant must appeal to the Valuation Tribunal in writing.[13] Time limits vary depending on the reason for making the appeal and the authority's response.[14]

The Valuation Tribunal Service has guidance on preparing for an appeal.

A claimant can appeal the Valuation Tribunal's decision to the Upper Tribunal, or the High Court on a point of law.[15]

Judicial review of a scheme

An appeal against a local authority's council tax reduction scheme itself may only be made by judicial review.[16]

The High Court held a scheme that set a minimum residence requirement of two years for help under the council tax reduction scheme was unlawful. The imposition of non-financial criteria fell outside the lawful parameters of a council tax reduction scheme.[17]

A specialist debt adviser could help someone with budgeting and financial advice. Find out more about where to get debt and money advice.

A specialist benefits adviser can discuss if there are any benefits someone is eligible to claim to maximise their income. Find out more about where to get advice about benefits and grants.