Council Tax Benefit is changing

Council Tax Benefit ends on 31^st March 2013. A scheme will replace it as explained below and will continue to provide money off your Council Tax bill if you are on a low income. The new “reduction” will be classed as a discount but try not to confuse this with Council Tax discounts which you can apply for from us, for example if you live alone. See the Council Tax & Business rates pages for more details on discounts.

Council Tax Benefit and its replacement is means-tested and is normally awarded from the start of the claim up to the last day of March to cover the whole period of the bill.

You may be able to get Council Tax Reduction if you are on other benefits, work part-time or work full-time on a low income, or if you have recently been made redundant.

You can claim Council Tax Reduction if:-

• you are on Income Support or Job Seekers Allowance, or Employment Support Allowance or Pension Credit.
• you are on a low income (this includes people who are self employed)

You cannot get Council Tax Reduction if:-

• you, or your partner between you, have more than £16,000 in savings (unless you get Pension Credit)
• You are not the liable person on the bill

(A partner is someone you are married to, or someone you live with as if you are married to them, or a civil partner)

Changes to Council Tax Benefit from April 2013

The Government decided to end the Council Tax Benefit system, which has been in place since 1993,  from 1st April 2013. 

Under national legislation passed in 2012, a new rebate system had to be drawn up by individual councils for the residents they serve. Like the old rebate system, the new discounts have to be awarded to households (who make an application) and who demonstrate financial need. Over 320 councils in the UK had to develop such a scheme, called a Reduction Scheme, and have it ready for 1^st April 2013.

Most councils in the UK have worked from the existing Council Tax Benefit system, because financial need is based on a means test of income, capital, savings, wages, DWP benefits etc.  as well as the weekly equivalent  Council Tax liability that you have to pay.

However, one problem with this was that the Government subsidy that we previously received for Council Tax Benefit was cut by around 10%. In 2012/13 the Government is expected to pay the full £9 million we will award in entitlements to Council Tax rebate but in 2013/14 the central funding is expected to be around £8 million. This is a part of the £500miilion saving that the Government want to take out of Council Tax Benefit  nationally in 2013/14.

As a result of the funding cut, many councils are drawing up schemes that pay less in Council Tax reduction in 2013/14. However, another restriction is that pensioner claims cannot be worse off in terms of their new entitlement than they were under the Council Tax Benefit system. Half of our claims are from pensioners.

This means that the Council had to plug a gap of £1million, without clawing it all back from 5,500 working age claims at around £200 per household per year , when in fact most of these households have full rebate entitlement previously, due to low incomes.

The Council consulted with its residents in the autumn of 2012  and, as a result, decided not to pass on the full Government cut. However, the Council  but had no option but to pass some of it on. The Council had 6 aims:-

• Base its new scheme on the former Council Tax Benefit system
• Protect pensioners, in fact enhance the pensioner scheme e.g. by ignoring certain income like war widows pension
• Protect families by ignoring child benefit income, eg  ignore £33.70 per week for 2 children 
• Help the poorest working age households with limited benefit restriction
• Protect vulnerable working age households from restrictions e.g. the severely disabled.
• Support those households who experience severe financial hardship

The new scheme was approved on 29^th January 2013 at a full Council meeting. Councillors had kept a close eye on the development of the scheme throughout 2012 as well.

A leaflet about the new scheme is available to view.

The full Bassetlaw Reduction scheme approved by the Council is available to view

The main change for 2013/14 will be that instead of the full (weekly) Council Tax liability being used in the discount calculation, it will be 92% of that liability. For example, a 2 adult household in Worksop on Income Support/Jobseekers (IB) who have a weekly Council Tax liability of £20.23, previously had the full £20.23 rebated due to their status i.e. 100%.

 Under the new reduction scheme from 1 April 2013, the same household will have the weekly amount that is eligible for discount, reduced to 92% which would be £18.61. This will lead to an annual bill of around £84 payable. Typically, thousands of households will receive Council Tax bills for the first time for around £85 (or £65 for single working age residents). This is because they still get 100% rebate (due to Income Support/Jobseekers  status) but only on 92% of their liability. Every household apart from pensioners and the vulnerable will have to pay at least 8% Council Tax from 1^st April 2013.

Other changes in the new local reduction scheme include discontinuing second adult rebate for working age as well as stopping backdating of entitlement for working age claims.

The new Bassetlaw scheme has some helpful additions over and above the Government’s recommended scheme policy, such as a full disregard for war pensions and child benefit.

For more information, contact the Benefits helpline on 01909 533710

The full equality impact assessment for the scheme is available to view.

Second Adult Rebate for people of pensionable age

You can currently still claim Second Adult Rebate if you are of pensionable age and  there are other people living in your home (excluding your partner) who are on a lower income than you. This allows us to use their income instead of yours to work out Council tax Reduction.

You cannot claim Second Adult Rebate if you are married or have a partner, as the rules say you must be the only liable person in the property.

This system will end from 31st March for working-age claimants.

To check if you would qualify for either benefit, please visit on the Benefits Calculator page and follow the instructions. This will give you an estimate of the amount of benefit you could get.

If you think you would qualify, please see the How to claim HB and CTB page or  to download a form visit the forms to download page.

For information about Income Support, Jobseeker’s Allowance  or other benefits visit the Benefits Useful Links page to get access to the Department for Work and Pensions pages.