Housing benefit and council tax reduction explained

 

Housing benefit and council tax reduction are state benefits that help people on a low income to pay their rent and council tax. 

Both benefits are means-tested - what does this mean?

We look at you and your partner's:

  • income
  • savings and investments
  • personal circumstances of other adults living in your household

The Government decide an amount that they believe is the minimum that you and your family need to live on each week. This is called your applicable amount. Once your income goes above your applicable amount then you will start to lose benefit.

You can claim

  • housing benefit if you are paying rent on your home
  • council tax reduction if you are the person paying the council tax on your home or if you are a homeowner

You can't claim

  • housing benefit and council tax reduction if you have more than £16,000 in total savings, stocks and shares or other capital, unless you receive guarantee pension credit. Any savings over £6,000 will affect the way your claim is calculated dependent on whether you are under or pension credit age
  • housing benefit if you make mortgage payments for your home
    • however, if you are having problems paying your mortgage the Department for Work and Pensions may be able to help, tel 0845 600 6334
    • you will still be able to claim council tax reduction if you are liable to pay the council tax

Some other groups of people do not qualify for benefit such as most full-time students or asylum seekers.

Calculate your benefit and make a claim

Start a new calculation / claim  Return to a saved calculation / claim

The calculator will only give you an estimate of your potential benefit. An accurate decision can only be made after we have received your application and documentation.

For support applying online please tel 020 8356 3399.

How is council tax reduction worked out?

Working age people

  • are required to pay at least 15% of their weekly council tax bill before being eligible for support. The remaining 85% is then used to calculate any council tax reduction
  • are no longer be eligible for second adult rebate

Pensioners

Pensioners are protected and continue to receive the same level of support that they did under the old council tax benefit system.

You are classed as a pensioner if you have reached the qualifying age for pension credit or if you are a couple and one of you has reached the qualifying age for pension credit.

However, you will not be classed a pensioner if one of you receives:

  • income support
  • income based jobseekers allowance, or
  • employment support allowance (income related benefit)

Benefit claim FAQs and queries

Read our FAQs about housing benefit and council tax reduction or submit a query:

Benefit claim questions

More information 

Page updated: 20/03/2016 09:51:05

Advertising