Council Tax Benefit and minimum 20% payment, how does it work?

vonsworld

Hello
Some councils are now asking residents to pay 20% of their council tax regardless of their circumstances, so nobody gets full exemption. How does this work if you are receiving council tax support (CTS) please?
Is the CTS worked out separately from the 20% minimum payment, or is your payment topped up to 20% if the CTS awarded means you should pay below 20%? 
Thanks for your advice

[Deleted User]

 They work out your CTS and pay it in to your council tax account. They then send you a bill for the remainder 

calcotti

The 20% is effectively part of the calculation. Let’s say your Council Tax is £20/week. The first stage of the calculation is to say that the maximum help available is £16/week.
Different councils work things out differently because they can make their own rules (within certain statutory requirements) so you have to look at each council scheme for its own rules. Some councils will do a more traditional calculation. Some councils have a banding scheme based on how much earnings you have. A small number of councils will still give 100% support.
Note the above comments apply to working age claimants. There are still national rules for pension age claimants and they are eligible for 100% support (if they qualify).

KatrinaWaves

The 20% minimum only applies to people receiving council tax support/reduction, therefore there are no separate rules for those getting CTR. Everyone else is paying 100%/75%

What it means is that everyone on CTR has to pay at least 20% towards their council tax (except pensioners) 

Galloglass

 A small number of councils will still give 100% support.

I was told by an official of a Council Tax does allow 100% that there are only 2 councils that do this. However they do not allow any further write offs under s13A LGFA 1992 which other councils will do. 

CIS

I was told by an official of a Council Tax does allow 100% that there are only 2 councils that do this. However they do not allow any further write offs under s13A LGFA 1992 which other councils will do. 

In which case they immediately fall foul - as the Valuation Tribunal has made to clear a council has to make a fair consideratin of each claim for discretionary relief under s13A(1)(c).

(13 )An authority cannot as a matter of law fetter its discretion and must therefore consider every application on its merits whatever the policy or scheme says

On appeal the Valuation Tribunal has the full power to override the council's decision over s13A(1)(c) and substitute an alternative figure.

Galloglass

@CIS
Thanks for that. 

vonsworld

Just to clarify...
If your full council tax was £1000, on full CT support you would still pay £200, since the maximum support available is £800.
If your income is such that the support available is reduced by £100, then you would pay £300.
You would not still pay £200 because that is the minimum payment, and more than the income based reduction from the support?
Thanks 

KatrinaWaves

It would be included in the calculation. Depending on the councils policy, so it’s not as simple as you make out but basically yes, the lowest income claimants will need to pay 20%, so £200 in your example. If your income means you need to pay more towards it then yes that would be on top of the 20%. 

calcotti

vonsworld said:

Just to clarify...
If your full council tax was £1000, on full CT support you would still pay £200, since the maximum support available is £800.
If your income is such that the support available is reduced by £100, then you would pay £300.
You would not still pay £200 because that is the minimum payment, and more than the income based reduction from the support?
Thanks 

Correct.