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Council Tax Benefit ceases and is replaced by Local Council Tax Support from April 2013

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John's picture
Joined: 09/03/2008

From 1st April 2013, Council Tax Reduction (CTR), also know as the localisation of Council Tax Support, replaces Council Tax Benefit (CTB).

Your local council is now responsible for how much support or reduction you will receive to help with paying your council tax bill.

By 31st January 2013, your local council has to produce and approved scheme as to how it was going to implement the payment of council tax for those previously in receipt of Council Tax Benefit. Although the funding available to local councils is 10% less than the amount previously payable through the Department for Work & Pensions. This means that local councils have to decide how they are going to deal with the reduction in funding.

The Department for Communities and Local Government (DCLG) has published guidance to local councils on “the best designed scheme”. It says that

  • People entitled to 100% support under Council Tax Benefit should pay no more then 8.5% of their net Council Tax Liability.

  • The taper rate* does not increase above 25% (the current Council Tax Benefit taper rate is 20%)

  • There is no sharp reduction in support for those entering work

  • There should be no large additional increases in non-dependant deductions.

    *Taper rate is rate at which benefit is withdrawn when income rises.

    The amount charged and amount of reduction will vary from year to year depending on local council implementation and grant level from central government.

    This can get very complicated.

    You residence is valued and placed, by your council, into a Council Tax Band reflecting that value. That Band then has the amount of council tax payable per household. If in the future there is a revaluation of property in the United Kingdom this may impact on the cost of your Council Tax.

    Your council will write to you concerning your council tax or you can find out how much you may have to pay by using there website.