This scheme helps people on low income with their Council Tax. You can claim Council Tax Reduction if you are working but your earnings are low or if you are receiving state benefits.
Council Tax Reduction (CTR) is subject to a means test – your income is measured against your needs and the amount of Council Tax you pay. CTR can only help towards your Council Tax.
The level of CTR you may be entitled to is based on your income. However, some incomes (for example certain disability benefits) are ignored or ‘disregarded’. Broadly speaking the lower your income, the more CTR you might be entitled to. Generally, you cannot claim if you have capital of more than £16,000.
Making a claim
If you think you might be entitled to CTR, then you can make a claim by completing an application form. CTR will usually start from when you return your form. If you are claiming for both Housing Benefit and Council Tax reduction, you will only need to complete one claim form.