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Council Tax Reduction scheme

The Council Tax Reduction (CTR) scheme helps low income households with their payment towards Council Tax. The scheme acts as a discount against your Council Tax bill.

Council Tax Reduction Scheme

You may get Council Tax Reduction (CTR) if you pay Council Tax and your income and capital (savings and investments) are below a certain level.

If you are over State Pension age you cannot claim Council Tax Reduction if your total capital exceeds £16,000, unless you or your partner are receiving Pension Credit Guarantee Credit. If you are working age you cannot claim Council Tax Reduction if your total capital exceeds £6,000.

The council decides on the rules for working age people, while people over State Pension age are assessed under national rules. The council cannot change these.

The council is required to review the scheme every year to consider if changes need to be made. This could affect how much residents need to pay. To consider making changes, the council must publish a draft scheme and consult on any changes it proposes.

CTR changes 2017/2018

The government is continuing to reduce the grant for help with Council Tax, which leaves further shortfalls in the funding available to help low income households in Brighton & Hove.

Although the council funds some of this shortfall, most working-age households now need to pay something towards their Council Tax. Any increase in the amount the council funds will have an impact on other services run by the council.

During the 2017/2018 financial year, the shortfall will be at least £4.1 million. Brighton & Hove City Council will absorb around £3.9 million of the funding shortfall and implement the following changes:

  • Taper increase from £0.20p to £0.25p. This means that for every £1 of added income a person receives, their Council Tax Reduction will reduce by £0.25p rather than £0.20p.
  • CTR will pay up to a maximum rate of 80% of Council Tax Band D.
  • Minimum amount of CTR set to £5 per week. If your CTR entitlement falls below £5 per week, your household will have to pay pay the full amount of Council Tax