How is Council Tax Benefit worked out?
To work out how much benefit we can pay you, we compare your 'income' to the amount that the Government states you need to live on. This is called your 'applicable amount'.
Your 'applicable amount' takes into account the size of your family, your age and any extra needs you may have.
To work out your 'income' we consider all the money you have coming in from earnings, social security benefits, maintenance payments and any other sources. We also make an adjustment for capital; this means your savings, investments and the value of any property or land owned, but not occupied, by you.
How much Council Tax Benefit will I get?
If you get Income Support, income-based Jobseeker's Allowance or Guaranteed Pension Credit, your benefit will be 100% of your council tax bill less any reductions for non-dependants in your household (non-dependants are people who share your property but are not dependent on you for financial support, for example grown up sons and daughters or elderly relatives).
If you do not receive Income Support, income-based Jobseeker's Allowance or Guaranteed Pension Credit, the following rules apply:
- If your weekly ‘income’ is below your ‘applicable amount’, your Council Tax Benefit is assessed in the same way as if you received Income Support, income-based Jobseeker's Allowance or Guaranteed Pension Credit.
- If your weekly ‘income’ is above your ‘applicable amount’, your Council Tax Benefit will be 100% of your weekly council tax bill, less 20p for every £1.00 that your ‘income’ exceeds your ‘applicable amount’.
Special Circumstances
Until 1st April 2004, if your home was in Council Tax bands F, G or H, you had to pay an amount towards your bill, even if you were awarded maximum Council Tax Benefit. This is because from April 1998, new claims for benefit could only be paid up to the maximum amount of the band E charge.
For example, if you live in a house that is in Council Tax property band F and you made a claim for Council Tax Benefit, the maximum benefit you could get was the same as if you lived in a band E property. You had to pay the difference yourself
However, from 1st April 2004 this rule has been abolished, and all Council Tax Benefit claims will be based on whatever band your property is in. The former band E restriction no longer applies.
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