Council Tax Reduction Scheme 2021/22

Closes 18 Nov 2020

Opened 26 Aug 2020

Overview

Redbridge Council changed the Council Tax Reduction Scheme for working age households for 2020/21.

In April 2013, the government abolished Council Tax Benefit and asked local Councils to design their own Council Tax Reduction schemes for working age claimants. Since April 2013, Government funding for the Council Tax Reduction Scheme has reduced year on year. The Council do not pass this full cut on to residents and has chosen to subsidise the scheme to provide the current level of support.

The Current Scheme

The current scheme is based on income bands. There is no means tested calculation which means that small fluctuations in income rarely affect entitlement, allowing claimants to budget more effectively.  A means tested scheme is re-active to all changes in income, however small and results in a re-assessment for every change. With the introduction and roll-out of Universal Credit, claims are re-assessed monthly. Each re-assessment generates new entitlement letters and Council Tax bills. This monthly change creates financial uncertainty for residents, can make it difficult for people to budget, and can result in debt problems.

There are six levels of support in the current scheme for those who qualify.

Levels of Support

Characteristic

Level of reduction  

Households with children where the claimant and/or partner are receiving one of the following disability benefits – Personal Independence Payments, Disability Living Allowance or Attendance Allowance

85%

Households with children where the claimant and/or partner are receiving a passported benefit or Universal Credit and are not working

72%

All other households with children where the claimant and/or partner have total gross earnings below £17,800 pa

51%

Households with no children where the claimant and/or partner are receiving one of the following disability benefits – Personal Independence Payments, Disability Living Allowance or Attendance Allowance

85%

Households with no children where the claimant and/or partner are receiving a passported benefit or Universal Credit and are not working

62%

All other households with no children where the claimant and/or partner have total gross earnings below £17,800 pa

41%

 

Pensioners will continue to receive support of up to 100%.

Under the current scheme:  

  • All non-dependants (e.g., grown up children or other adults including relatives) living in the property are expected to contribute towards the Council Tax. There is a flat rate of £12.00 per week for those who are working and £5.00 per week for those who are not working
  • There is a minimum award of £5.00 per week. If your reduction is calculated at less than £5.00 per week, you will be liable to pay the full Council Tax charge

 The Council provides the following support measures for residents:

  • A hardship fund for those vulnerable residents facing financial difficulties paying their Council Tax
  • Employment and skills advice and training for those who are unemployed or in low paid work
  • Advice and support to claim more complex benefits such as Personal Independence Payments and Attendance Allowance
  • Take-up campaigns to identify residents who may not be claiming all the benefits they are entitled to, and support them with applications
  • Outreach sessions in children’s centres, healthcare facilities and local faith group meetings to promote benefits and provide advice
  • Partnership working with a charity to provide more complex debt advice

The Council are developing an employment strategy to help more residents into work and improve their skills to lift them out of poverty. This will include money advice to support financial independence.

Give Us Your Views

Areas

  • All Areas

Audiences

  • Council Tenants and Leaseholders
  • Older people
  • Young people
  • All residents
  • Community and Voluntary Sector
  • People with a disability
  • People on benefits

Interests

  • Council Tax