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Council Tax Reduction for Universal Credit recipients

If you are of working age, and receiving universal credit, we are changing the Local Council Tax Reduction Scheme from 1 April 2020. 

The current system will be replaced with a banded scheme with your reduction being calculated from a simple table.

This scheme looks purely at whether you are working as well as receiving universal credit and, if so, what your monthly earnings are. We will receive this information directly from the Department for Work and Pensions. 

Our scheme uses a series of 'income bands': we will work out your entitlement to Council Tax Reduction based on which band your earned income falls within. (Subject to non-dependant deductions where applicable).  A banded scheme means that small changes in your earned income will not necessarily change your entitlement to Council Tax Reduction. 

If you, or your partner if you have one, are not working you will fall into the first band.

Council Tax Reduction bands
Monthly income Monthly contribution towards Council Tax liability
Less than £316, including not in work £0
Between £316 and £519.99 £25
Between £520 and £769.99 £50
Between £770 and £997.99 £75
Between £998 and £1,180.99 Up to £125
Between £1,181 and £2,749.99 Up to £175
More than £2,750 Full Council Tax payable

There will be a £6.50 per week deduction from the amount of reduction you are entitled to for each applicable non dependant living with you. Some exclusions apply – refer to regulation 48 in the working-age scheme linked below.

We have made these changes to the local scheme because of the way Universal Credit is calculated. Our aim is to simplify the process for all working age customers receiving Universal Credit, giving increased stability to those whose wages or income fluctuate each month and reduce the number of revised council tax bills for minor changes in income.

Working age or pensioner claims for Council Tax Reduction