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Council Tax Support Banded Scheme

From the 1st April 2021 all working age residents claiming Council Tax Support will have their claims assessed using a new banded scheme instead of the previous Council Tax Benefit based scheme.

What has changed?

Under the current scheme, residents struggling to pay Council Tax could claim up to 85% of their bill but would still need to find the other 15%.

For some this can be difficult, leading to missed payments, arrears building up and debt recovery action being taken.

This has led to a complete overhaul of our current Council Tax Support scheme.

From the 1st April 2021 we are moving from a benefits based scheme where the maximum reduction available for working age residents on low incomes is 85% to a revised banded scheme, where some residents will be able to claim a maximum reduction of 100%.

We will become one of only 40 councils in the country to offer working age residents a 100% reduction in their Council Tax bill.

The new scheme also provides support from the day it is needed to help our most vulnerable residents struggling with real financial hardship to avoid crisis situations. 

In addition these changes have opened up our Council Tax Support scheme to more residents who may need this help.

How does it work?

Our new banded scheme is based on household circumstances and level of income.

DiscountSingle PersonSingle Person with
One Child
Single Person
with two
or more children
CoupleCouple with
one child
Couple with two
or more children
Band 1
100% £0 to £95.00 £0 to £150.00 £0 to £210.00 £0 to £140.00 £0 to £195.00 £0 to £255.00
Band 2
75% £95.01 to £115.00 £150.01 to £180.00 £210.01 to £240.00 £140.01 to £160.00 £195.01 to £225.00 £255.01 to £285.00
Band 3
50% £115.01 to £135.00 £180.01 to £210.00 £240.01 to £270.00 £160.01 to £180.00 £225.01 to £255.00 £285.01 to £315.00
Band 4
25% £135.01 to £155.00 £210.01 to £240.00 £270.01 to £300.00 £180.01 to £200.00 £255.01 to £285.00 £315.01 to £345.00
Nil award 0% Over £155.00 Over £240 Over £300.00 Over £200.00 Over £285.00 Over £345.00

Residents who claim Universal Credit

The new scheme will offer better support for residents claiming Universal Credit.

For residents in work, their Universal credit claim may be recalculated each month due to fluctuating earnings and other circumstance which means the amount of Council Tax Support they receive also needs to be adjusted.

Residents are sent a new Council Tax bill with a revised payment instalment plan and their previous plan is cancelled. If this happens often, a resident cannot keep up with regular scheduled payments because the new instalment plan may come into effect before the previous payment instalment was due. This means residents are unable to make the correct payments on time and risk falling into arrears.

The new banded scheme addresses this by placing a residents circumstances into an income band. Each band decides the percentage of reduction we will apply to your bill.

Example: A single resident earns £120 per week. Their discount band is income band 3. If the following month they earn £130 a week they would remain in band 3. The amount of Council Tax Support they get stays the same and their bill does not need to be recalculated. Their payment instalment plan stays the same.

Who will be affected?

The scheme only effects residents liable to pay Council Tax who are working age.

Support for pension age residents will remain the same. The amount of support will not be affected by the banded scheme.

Will I get more or less support than under the previous scheme?

Our income banded scheme will offer support to more residents than the previous scheme.

There will be a small group of residents that will get less support under the income banded scheme.

These residents can apply for our Council Tax Hardship fund to help with the transition to a income banded scheme.