Who will be affected by this change?
The changes will affect all working age households that receive Council Tax Support from 1st April 2017 and some further changes will be introduced from 1st April 2018.
These changes will not affect pension age households.
Will you contact me if the changes are going to affect me?
If you were receiving Council Tax Support at the end of January 2017 a letter has been sent to you about the changes.
Why is the scheme changing?
We are required to review our Council Tax Support scheme annually, and after public consultation, a revised local scheme was agreed at the Council Meeting on the 8 December 2016.
From 1 April 2017
- The maximum level of support will reduce from 75% to 72.5%
This will mean that if you are of working age and receive Council Tax Support, you will have to pay at least 27.5% of your Council Tax charge from 1 April 2017.
- The Family Premium will be removed from the Council Tax Support calculation
Currently the Family Premium of £17.45 is used when calculating Council Tax Support, we will no longer include this for new applications.
- Backdating of new claims will be reduced from six months to one month
- The amount of time someone can be away from Great Britain and continue to get Council Tax Support will be reduced to four weeks with some exceptions
- The number of dependent children included in the calculation for Council Tax Support will be limited to two
Under the current scheme, the number of children someone has is taken into account when working out how much help they can get.
If any children are born after April 2017 and there are already two children being claimed for, they will not be taken into account in the calculation.
There will be exceptions where there are multiple births after 1 April 2017 and the household is not already at their maximum of two children within the calculation, adopted children or where households merge.
- Minimum set income for self-employed earners after one year of self-employment
If you are self-employed and your business has been running twelve months or more we will calculate a minimum set income (Minimum Income Floor).
It is calculated using the National Minimum Wage Opens in a new window for your age group, multiplied by 35 hours. It also includes a notional deduction for tax and national insurance and half a private pension contribution (where a pension contribution is being made).
When working out how much Council Tax Support you can get we will include our calculated Minimum Income Floor if your self-employed earnings are lower.
From 1 April 2018
- The maximum level of support will reduce from 72.5% to 70%
This will mean that if you are of working age and receive Council Tax Support, you will have to pay at least 30% of your Council Tax charge.
- The amount of Council Tax Support that households can receive will be limited to the Council Tax charge of a Band D property
This will mean that if you live in a property that is in band E, F, G, or H the maximum award will be based on 70% of the Council Tax liability of the Band D property charge in your area.