Benefits

Council Tax Benefit

This benefit provides help towards Council Tax and like Housing Benefit, is administered by your Local Authority.

Basic Conditions

you are liable for Council Tax on a property.
you do not have savings/capital of more than £16,000 unless you are receiving the guarantee credit of Pension Credit (in which case there is no capital limit).
you are at least 18 years old.

As with Housing Benefit, you are not excluded if you or your partner work full-time.

How much?

If you receive Income Support (or Income Based Jobseekers Allowance) then you will receive maximum Council Tax Benefit.

If you do not receive Income Support then maximum Council Tax Benefit will be reduced by 20 pence for every £1 income over the "applicable amount" figure. This is very similar to the Income Support applicable amount calculation but also includes amounts for families and children.

'Severe Mental Impairment'

If an individual is deemed 'severely mentally impaired' then it may be possible to reduce their Council Tax bill. Someone is considered to be 'severely mentally impaired' if they have:

...a severe impairment of intelligence and 'social functioning (however caused) which appears to be permanent.

A doctor will have to complete a certificate to confirm that they consider this to be the case.

To qualify for a possible reduction the individual must also be in receipt of one of the following benefits:

Incapacity Benefit
Severe Disablement Allowance
Attendance Allowance
Middle or Higher Rate Care Component of Disability Living Allowance
Disabled Persons Tax Credit
Constant Attendance Allowance
Unemployability Allowance
An increase for Constant Attendance Allowance in a Disablement Pension.

To apply under these rules you should contact the local Council Tax office that issues the original bills.

Note: The Council Tax office may not agree to hold back on any enforcement action to gain payment of the tax just because there is a delay in an application to reduce the bill.

For more information on Council Tax benefit visit the Department of Works and Pension web site which has useful information.