Our proposed changes to our council tax reduction scheme are:
- All working-age people, including those currently protected, will receive maximum support with their council tax, of 85%, 80% or 75% of council tax liability. This means that all working-age people will be need to pay 15%, 20% or 25% of their council tax before they receive a reduction. We are consulting on this element.
- Working-age people who are entitled to the Enhanced Disability Premium and Severe Disability Premium will see their maximum level of support fall from 100% to either 85%, 80%, or 75% (in line with all other working-age people), and we are consulting on this element.
- Income from Disability Living Allowances and Personal Independence Payments will be disregarded when calculating council tax reduction.
- Income from War Disablement Benefits, and from child benefit and child maintenance, will also be disregarded.
- Backdating of claims for working-age people will be limited to four weeks from the data of application, and we are consulting on this element.
- Universal credit will be treated as earned income for the purposes of assessing council tax reduction when the award contains an element of wages.
- Non-dependent deductions are in line with the uprated charges, as indicated in the regulation.
- There will be no changes for people of pension age, who will continued to have their council tax reduction based on 100% of their council tax liability, as prescribed by the government.
You can read more information about this here: Council Tax Reduction Scheme 2016.
More information about this can be found online here: Council Tax Reduction (webpage).
These proposals will reduce the maximum support offered to people who are currently protected, but will increase the support available for other working age people on lower incomes. We think that this will be a fairer and less complex scheme for all working-age people.
Please give us your views on these proposals by completing this survey before 27 November 2015. Thank you for giving us your views.
