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Consultation on changes to Council Tax Support

What our proposals may mean for you

The proposed changes to the Local Council Tax Support (LCTS) scheme could affect up to 4200, or around 5.5 %, of the households in B&NES. Most of these would either get a greater discount on their Council Tax, or receive the same level of support as they get now. Under the new proposals, around 500 households who do not qualify for support now might become eligible for a discount on their Council Tax bill. However, around 1000 households would receive less support than they do now, or would no longer qualify for Council Tax Support at all.

The changes would happen because the discount amounts and income bands in our proposals are lower than those in the current LCTS scheme. Our officers have modelled the cost of introducing the Universal Housing and Childcare Elements disregards (meaning taking these amounts out of our calculations of your income), but keeping the income allowance bands at the current levels. This would raise the cost of providing Council Tax Support by over £1 million, and we would have to pass these costs onto the Council Tax bills of every household in Bath and North East Somerset.

If we think our proposals would affect you, we will write to you, to set out an estimate of how much your support would change. If the changes would mean a reduction in your support, and you are worried that you won't be able to pay your Council Tax bill, you can apply for discretionary support from our Welfare Support Team. 

Compare your circumstances with our case studies

These case studies are based on real-life examples of how the proposed changes could affect households in B&NES. They may help you to understand how these changes could affect your household finances. We have changed the names of the claimants.

A single parent private renter, with a young child

Gracie

Gracie is a single parent who works 30 hours a week. She has a two-year-old, and pays £211 per month for childcare. She rents a two-bedroom flat in Keynsham for £825 a month. Her Universal Credit includes Housing Costs and Childcare Elements, and makes up just over half of her income.

Her weekly household income is:

  • £224.98    Earnings
  • £281.40    Universal Credit (with £190.38 Housing and £48.69 Childcare Elements)
  • £24.00      Child Benefit
  • £530.38    Total

Under the current rules

Gracie's household income allowance has an extra £50, because of her child. Even so, her income is just over the maximum to qualify for the lowest band of Council Tax Support, so she doesn't qualify for any discount on her bill. 

  Weekly Income Allowance Discount 
  £0 to £160.09 90%
  £160.10 to £270.19 85%
  £270.20 to £380.29 80%
  £380.30 to £435.34 70%
  £435.35 to £490.39 50%
  £490.40 or more 0%

Under the new proposals

Under the new rules, Gracie would still have an extra £50 per week income allowance, because of her child. In addtion, we wouldn't count the Housing and Childcare Elements of Gracie's Universal Credit as part of her income. This means that the figure we'd use is:

£530.38 (- £190.38 Housing and £48.69 Childcare Elements) = £291.31

This places Gracie's household in the £235.11 to £335.10 weekly income band, and so she now qualifies for a 60% discount on her Council Tax bill. 

  Weekly income allowance Discount 
  £0.00 to £135.10 100%
  £135.11 to £235.10 85%
  £235.11 to £335.10 60%
  £335.11 to £385.10 40%
  £385.11 to £435.10 20%
  £435.11 and above 0%

A single parent home owner, working full-time

Monika

Monika is a single mum who works full-time, has two children in secondary school, and owns her home. She gets Universal Credit, but it only makes up a small part of her income (around 17%). Because she owns her home and her children are both at school, her Universal Credit has no Housing or Childcare Elements.

Her weekly household income is:

  • £382.08    Earnings
  • £89.93      Universal Credit (with no Housing or Childcare Elements)
  • £39.90      Child Benefit
  • £511.91    Total

Under the current rules

Monika gets an extra weekly income allowance of £100 for her two children. Her weekly income of £511.91 means that she qualifies for the lowest level of Council Tax Support in the current scheme (for income band £485.36 to £540.39, including her extra child allowance). This is a 50% reduction on her bill, which makes £9.60 a week. 

  Weekly Income Allowance Discount 
  £0 to £210.09 90%
  £210.10 to £320.19 85%
  £320.20 to £430.29 80%
  £430.30 to £485.34 70%
  £485.35 to £540.39 50%
  £540.40 or more 0%

Under the new proposals

Monika has no Housing or Childcare Elements in her Universal Credit, so our assessment of her weekly income doesn't change under the new proposals. At £511.91, she earns more than the maximum of £485.11 (including the extra child allowance). So she no longer qualifies for help with her Council Tax bill. 

  Weekly income allowance Discount 
  £0.00 to £185.10 100%
  £185.11 to £285.10 85%
  £285.11 to £385.10 60%
  £385.11 to £435.10 40%
  £435.11 to £485.10 20%
  £485.11 and above 0%

If Monika feels she cannot afford her new Council Tax instalments, we would advise her to apply for a discretionary reduction from our Welfare Support Team. 

A couple with a large family, living in social housing 

Andy and Chris

Andy and his partner Chris are unemployed, and have four children, aged two to five. They rent a four-bedroom home from Curo in Midsomer Norton. They are affected by the Benefit Cap, as they have more than two children. Their Universal Credit makes up over 80% of their income, and around half of this is the Housing Element. Andy and Chris share the childcare at home, and they have no Childcare Element in their Universal Credit. 

Their weekly household income is:

  • £350.76    Universal Credit (including £177.96 Housing Costs Element)
  • £71.70      Child Benefit
  • £423.46    Total

Under the current rules

Andy and Chris get the maximum extra allowance for their weekly income (£125), because they are a couple with two or more children. Their incomes places them in the £345.20 to £455.29 income band, and qualifies them for an 80% discount on their Council Tax bill.

  Weekly Income Allowance Discount 
  £0 to £235.09 90%
  £235.10 to £345.19 85%
  £345.20 to £455.29 80%
  £455.30 to £505.34 70%
  £505.35 to £565.39 50%
  £565.40 or more 0%

Under the new proposals

In addition to the extra allowances because they are a couple with children, Andy and Chris would now have the Housing Element of their Universal Credit disregarded from our calculations of their income. This means that the figure we'd use is:

£423.46 (- £177.96.38 Housing Element) = £245.50

This places them in the £185.11 to £285.10 income band, and means they would get an 85% discount on their Council Tax bill, a small increase from the current arrangements. 

  Weekly income allowance Discount 
  £0.00 to £185.10 100%
  £185.11 to £285.10 85%
  £285.11 to £385.10 60%
  £385.11 to £435.10 40%
  £435.11 to £485.10 20%
  £485.11 and above 0%

Two adults with no other income, living in a privately rented house

Clive

Clive lives with his 30-year-old son in a two-bedroom house in Weston in Bath. Universal Credit is his only income, at £235.09. More than half of this, £150, is the Housing Element).

Under the current rules

Clive gets no extra allowances for his weekly income, as he is single, and his son is an adult. His income places him in the £220.20 to £330.29 band and qualifies him for an 80% discount on his Council Tax.

  Weekly Income Allowance Discount 
  £0 to £110.09 90%
  £110.10 to £220.19 85%
  £220.20 to £330.29 80%
  £330.30 to £385.34 70%
  £385.35 to £440.39 50%
  £440.40 or more 0%

Under the new proposals

When we take out the Housing Element of his Universal Credit from our calculations, Clive's weekly income is only:

£235.09 (- £150) = £85.09

This brings him into the lowest income band, and qualifies him for a full 100% discount on his Council Tax, meaning he has nothing to pay. 

  Weekly income allowance Discount 
  £0.00 to £85.10 100%
  £85.11 to £185.10 85%
  £185.11 to £285.10 60%
  £285.11 to £335.10 40%
  £335.11 to £385.10 20%
  £385.11 and above 0%

A single person working part-time and living alone in a privately rented flat

Zoe

Zoe lives lives on her own in Timsbury and rents a flat from a private landlord for £650 a month. She's in her 50s and works part-time as a healthcare assistant. Her Universal Credit makes up around two-thirds of her weekly income, and includes a £150 Housing Element.

Her weekly household income is:

  • £98.08      Earnings
  • £235.10    Universal Credit (including £150 Housing Element)
  • £333.18    Total

Under the current rules

Zoe doesn't get any extra income allowances, because she is single and doesn't have any children. Currently, her income puts her into the £330.30 to £385.34 band, and she qualifies for a 70% discount on her Council Tax. 

  Weekly Income Allowance Discount 
  £0 to £110.09 90%
  £110.10 to £220.19 85%
  £220.20 to £330.29 80%
  £330.30 to £385.34 70%
  £385.35 to £440.39 50%
  £440.40 or more 0%

Under the new proposals

We would disregard the part of Zoe's Universal Credit which helps her to pay for her housing. This means that we would assess her income as:

£333.18 (- £150 Housing Element) = £183.18

As a result, she would now fall into the £85.11 to £185.10 weekly income band, and qualify for an 85% discount on her Council Tax bill. 

  Weekly income allowance Discount 
  £0.00 to £85.10 100%
  £85.11 to £185.10 85%
  £185.11 to £285.10 60%
  £285.11 to £335.10 40%
  £335.11 to £385.10 20%
  £385.11 and above 0%