Council Tax Support Scheme

We have now adopted a local Council Tax Support Scheme for the 2014/15 financial year. You can see the 2014/15 scheme in the Council Tax Support 2014/15 downloads section below.

Contents

Council Tax Benefit changes 

From 1st April 2013, Local Council Tax Support Schemes replaced Council Tax Benefit. 

As part of the change the Government has also said it will no longer fully fund the new local Council Tax Support Scheme and has reduced the money it gives to councils. In Derby, this means an overall reduction of approximately £2.6 million every financial year. This means that we have had to make some very difficult decisions about who we can help with a discount towards their Council Tax.

What does the change mean?

Every council has to have its own local scheme to help its residents on low incomes with their Council Tax payments.

The Government has outlined that new schemes should:

  • not change the amount of help that low income pensioners currently receive.
  • consider the needs of:
    • families
    • households with disabled people
    • people who receive war pensions as a result of bereavement or disablement.
  • encourage people to work and not discourage them from working.

Everyone of working age will be affected by the change. In Derby, for the 2014/2015 financial year the maximum award of Council Tax Support for working age households will be 80 per cent of their council tax bill.

How will this affect different households?

These examples are based on 2013/14 figures. The amounts shown are estimated and some figures have been rounded...

Example 1: For a single person...

  • of working age
  • receiving Income Based Job Seeker's Allowance of £72.40 a week
  • living alone in a band A property in Derby.

Under the Council Tax Support Scheme they would get £10.77 help a week or £561.80 a year towards their Council Tax bill. This is a decrease of £2.70 in support each week or £140.45 a year.

This means they would have to pay £2.70 a week or £140.45 a year towards their Council Tax bill

Example 2: For a lone/single parent family...

  • where the parent is of working age
  • with one child
  • receiving Income Support, Child Tax Credits and Child Benefit - a total household income of £128.83 a week
  • living in a band C property in Derby.

Although they live in a band C property, support through the scheme would be capped at band B.

Under the Council Tax Support Scheme they would get 80% of band B level support.  They would get £12.57 help a week or £845.05 a year towards their Council Tax bill.

This is a decrease of £5.39 in support each week or £280.90 a year.

This means they would have to pay £5.39 a week or £280.90 a year towards their Council Tax bill.

*Single people pay less because they qualify for a discount of 25% off their Council Tax bill. This is because they live alone – the single person’s discount isn’t changing.

Example 3: For a two parent family...

  • with both parents of working age
  • with four children
  • receiving Income Support, Child Tax Credits and Child Benefit, a total household income of £303.02 a week
  • living in a band D property in Derby.

Although they live in a band D property, support through the scheme would be capped at band B.  Under the proposed Council Tax Support Scheme they would get 80% of band B level support.  They would get £16.76 support a week or £873.91 a year towards their Council Tax.  This is a decrease of £10.18 in support each week or £530.59 a year.

This means they would have to pay £10.18 a week or £530.59 a year towards their Council Tax bill.

 Example 4: Household with a disabled person...

  • with a couple of working age
  • receiving Income Support and Disability Living Allowance, a total household income of £209.45 a week
  • living in a band A property in Derby.

Under the Council Tax Support Scheme they would get £14.37 support a week or £749.06 a year  towards their Council Tax bill.  This is a decrease of £3.59 in support each week or £187.27 a year.

This means they would have to pay £3.59 a week or £187.27 a year towards their Council Tax bill.

Further information and advice

Find out more about the Council Tax Support Scheme with our frequently asked questions.

For advice on budgeting, welfare support, benefits and debt, visit our Money advice page.

If you have any questions please do not hesitate to contact us for more information or advice, details are at the bottom of the page.

Downloads

Council Tax Support 2013/2014

Council Tax Support 2014/2015

Downloads

Contact details

Email:
Post address: Customer Service Centre
The Council House
Corporation Street
Derby
DE1 2FS
Phone: 0333 200 6900
Minicom: 01332 640666

Customer Service Centre
The Council House
Corporation Street
Derby
DE1 2FS