Income Based Scheme

Income Band Scheme 2018/19

 
On this page, you will find help and information on the changes to the Council Tax Rebate Scheme, including:
 
Further financial advice and support
 

How Council Tax Rebate is changing

 
From 1 April 2018 we will work out Council Tax Rebate for working age people based on bands of income. We will:
 
  • increase the maximum support available for working age people to 85% of their Council Tax liability;
  • apply a flat rate deduction of £5 a week for each non-dependant;
  • disregard carers’ allowance from the income we use to work out Council Tax Rebate
  • provide extra help for single people under 25 years old who have left Local Authority care by increasing maximum support to 100% of their Council Tax liability if their weekly income falls within Band 1

How the scheme will work

 
Currently we work out Council Tax Rebate by comparing your income to figures that reflect your basic weekly needs. These figures make up your ‘Applicable Amount’ that will vary according to your circumstances. The maximum Council Tax Rebate you can get is 80% of the Council Tax for your home. If your income is above the ‘Applicable Amount’ we reduce the maximum Council Tax Rebate you can receive by 20 pence for every £1 of excess income. This means small changes in your income result in changes to the Council Tax you need to pay.
 
We will continue to work out your income in the same way as we do now. However, instead of comparing your income to an ‘Applicable Amount’, we will look at the income you get and place you in a band to decide the Council Tax Scheme we can award.
 
The band you fall into will decide how much discount you receive and how much help we can give you towards your Council Tax charge.
 
Under our ‘Income Band’ scheme from 1 April 2018, it will mean we can award the following discounts to the Council Tax for your home:

  • 85% if your weekly income is in Band 1
  • 75% if your weekly income is in Band 2
  • 60% if your weekly income is in Band 3
  • 45% if your weekly income is in Band 4
  • 30% if your weekly income is in Band 5
  • 15% if your weekly income is in Band 6
Income band     Single person Couple no children Couple with one child Lone parent with one child Couple with two or more children Lone parent with two or more children  
85% 1 upto £75.00 £115.00 £165.00 £125.00 £215.00 £175.00 per week
75% 2 upto £125.00 £165.00 £215.00 £175.00 £265.00 £225.00 per week
60% 3 upto £175.00 £215.00 £265.00 £225.00 £315.00 £275.00 per week
45% 4 upto £225.00 £265.00 £315.00 £275.00 £365.00 £325.00 per week
30% 5 upto £275.00 £315.00 £365.00 £325.00 £415.00 £375.00 per week
15% 6 upto £325.00 £365.00 £415.00 £375.00 £465.00 £425.00 per week

We cannot award any Council Tax Rebate if your weekly income is more than the amounts set for Band 6, or you have capital or savings of more than £6,000.
 
If you have non dependants living in your home, then we will deduct £5 a week from your Council Tax Rebate for each non dependant, regardless of their income.
 
If you receive carers’ allowance, please contact us as we will ignore the amount you get when we work out your income from 1 April 2018. This means we may increase the discount we apply to your Council Tax bill.
 
It is very important you tell us if you are under 25 years old and have previously been in local authority care as you may get extra help.