What is Council Tax?

Council Tax is the way you help pay for local services the Council provides. Each Council sets the level of Council Tax in its own area, but the amount you pay depends on the value of your property.

Council Tax assumes there are 2 or more adults, aged over 18 occupying the property. However, there are discounts, exemptions, reliefs and benefits available to reduce the amount you pay. Please ask for a leaflet if you think you would qualify.

What is Council Tax Benefit?

Council Tax Benefit is help towards your Council Tax. Anyone who has to pay Council Tax who is on a low income can claim, regardless of whether they are retired, unemployed, or in full or part-time work. However there is a capital limit of £16,000, which applies in most cases.

Eligible Council Tax

The eligible Council Tax is the the gross amount you should pay, minus any reliefs, discounts or exemptions.

How do I make a claim?

An application form can be requested by writing to the address, or by telephoning the number at the end of this leaflet, or by calling into one of the Customer Service offices or contact us by email at: benefits@erewash.gov.uk

Please read the form carefully before completing. Every question on the form must be answered, and you must provide all the evidence necessary. If you fail to do so, you will be asked to provide further information and this will lead to a delay in your claim being processed.

If you are an Owner Occupier, a Council Tax Benefit application form is all you need to complete. If you live in rented accommodation there is no need to complete separate Housing Benefit and Council Tax Benefit application forms, ask for a Private Tenants form, this will be used to assess your entitlement to both benefits.

If you are in receipt of Income Support or Jobseekers Allowance (Income Based) you can also complete an HCTB1 form issued by the Dept for Work & Pensions (DWP) or Jobcentre Plus. This form needs completing and returning to the Housing & Council Tax Benefit Teams at the Council.

What date will my entitlement start?

If you are in receipt of Income Support or Jobseekers Allowance (Income Based), and have made a claim with us within 4 weeks of the start of your benefit, any Council Tax Benefit will be paid from the Monday following the start of your Income Support or Jobseekers Allowance (Income Based) claim. All other claims start from the Monday following the date your claim is received by this office.

If you wish your claim to be backdated, you must give the date you wish it to begin, and reasons for your delay in claiming. You have to demonstrate 'good cause' for not making a claim at an earlier date. Good cause must be demonstrated for the whole of the period you are requesting the backdate.

Please bear in mind that you have to be resident in the property to receive Council Tax Benefit, however in certain circumstances discounts, exceptions and benefit can be awarded whilst you are absent away from home. Please see Absence Away From Home leaflet and Exceptions and Discounts leaflet.

How will my benefit be calculated?

Any entitlement to Council Tax Benefit will be based on the eligible Council Tax. If you are in receipt of Income Support or Jobseekers Allowance (Income Based), you will receive maximum Council Tax Benefit which will be 100% of the eligible Council Tax. All other claims are ' means tested'

An on-line Benefits Calculator is now available.

Income

All income is assessed on a weekly basis. If you or your partner have "earned income" (that is, wages, salary or profits from a business), deductions are made for Tax, National Insurance and half of any pension contributions made.

Certain categories of income are "disregarded" in whole or in part for example Disability Living Allowance. These disregards have the effect of increasing your entitlement to benefit by reducing the "Assessed Income" on which your benefit is calculated.

Capital

If you or your partner are under 60 and have capital of between £6,000 and £16,000, the Government Regulations require that we assume a notional income of £1 per week for every £250 (or part £250) in value. This will be shown as "Capital Income" on any Benefit Notification.
If you or your partner are 60 or over and have capital of between £6,000 and £16,000, the Government Regulations require that we assume a notional income of £1 per week for every £500 (or part £500) in value. This will be shown as "Capital Income" on any Benefit Notification.

Applicable Amounts

Applicable amounts are the assumed living costs of individual households for the purposes of the Housing Benefit and Council Tax Benefit Schemes. These amounts are specified in Government Regulations. They consist of personal allowances related to age and marital status, and various premiums for special circumstances such as disability, pensionable age, or a family. All allowances and premiums to which you are entitled will be shown separately on any Benefit Notification.

Calculation of your Council Tax Benefit

The maximum entitlement to Council Tax Benefit is 100% of your Council Tax after any relief, exemptions and discounts. Deductions are made from the maximum benefit in respect of non-dependants, except your partner.

All persons over 18 years of age living with you as part of your family are assumed to make a contribution to your housing costs, and therefore a deduction, known as a Non-Dependant Deduction, is made from the maximum entitlement to Council Tax Benefit in respect of each of those persons.

The Non-dependant's income is used to determine the level of deduction made from your benefit. Failure to provide details will result in the highest level of deduction. The lowest level of deduction is made in respect of non-dependants on State benefits.

A summary of the deductions made is shown below based on a 52 week basis:

There is no deduction for non-dependants under 18, and those on a YTS Training Scheme, or those on Income Support or Job Seeker's Allowance (income based). No deductions are made in respect of non-dependants if you or your partner are registered blind, in receipt of Attendance Allowance or the Care Component of Disability Living Allowance.

If your assessed income is greater than your applicable amounts, then 20% of the excess is deducted from your maximum entitlement (after any non-dependant deductions as above). If your assessed income is less than your applicable amounts, or you are on Income Support, you are entitled to maximum Council Tax Benefit, less any non-dependant deductions.

What is Second Adult Rebate?

Second Adult Rebate is designed to help Council Tax payers who have another adult or adults living with them, who cannot be expected to make a contribution to the Council Tax charge because their income is low. Under the normal benefit scheme, a Council Tax payer in this situation might be worse off because they would be assessed as a single claimant but would have deductions made from benefit in respect of each non-dependant adult. Please ask for the Guide to Second Adult Rebate.

Normally, anybody who claims Council Tax Benefit will automatically be assessed for Second Adult Rebate if they are eligible, and will be granted the higher amount.

How is Council Tax Benefit paid?

Any entitlement to Council Tax Benefit will be credited to your Council Tax account and you will be advised.

Discretionary Housing Payments

Discretionary Housing Payments (DHPs) help customers who receive Housing and/or Council Tax Benefit and are not getting the full rent or Council Tax paid.

Payments made under the new scheme are not intended to be payments of benefit. To receive an award you must:

• Be getting Housing Benefit to receive extra help to pay the rent (but not help with the cost of service charges not payable by Housing Benefit, such as fuel charges).
• Be getting Council Tax Benefit to receive extra help to meet your Council Tax liability.
• Satisfy the DHP Officer that you require extra help with housing costs i.e. rent and/or Council Tax.

We only have so much money per year to pay out awards of Discretionary Housing Payments, therefore how the money is spent throughout the year will be carefully monitored.

As part of the claim process you will be asked to provide details of your weekly out goings and where necessary, provide proof of some items of expenditure.

In order to claim extra claim with your housing costs (Rent and/or Council Tax), please contact us if you require a DHP application form.

Changes of circumstances

If your family's circumstances or income change, it is your responsibility to tell us. Tell us immediately, as it may affect your benefit, and any resulting overpayment will be reclaimed from you. If you knowingly give us false information, the money will be reclaimed and you may be prosecuted. A change of circumstances can only be backdated in your favour for one calendar month, however if the change results in an overpayment of benefit, we will amend your claim from the actual date of charge.

To give you an idea of the changes we need to know about, these are some of the main things you should tell us:

• If anyone stops or starts getting Income Support or Pension Credits
• If anyone's income or savings change
• If anyone stops or starts work
• If anyone stops or starts getting benefit, for example Jobseeker's Allowance, Incapacity Benefit, Tax Credit, Disability Living Allowance, Attendance Allowance
• If anyone comes to live in your home
• If anyone already living in your home leaves
• If anyone stops or starts full-time education, for example, if a child leaves school, or you stop getting child benefit for one of your children
• If you start to let part of your home to someone who pays you rent or board
• If you or your partner go into hospital for more than 4 weeks
• You are going away from home for more than 4 weeks.

Benefit Interventions

It is necessary to carry out periodic reviews of your entitlement and you will be sent a review form or receive a visit from a member of our visiting team. The form must be fully completed, and all the evidence provided. If you fail to do so, your claim could be suspended pending the information being supplied.

Do not wait for your benefit review to tell us about any changes in your circumstances. You must tell us immediately of any changes that may affect your entitlement to benefit.

Overpayments of Council Tax Benefit

If you are paid too much Council Tax Benefit, the overpayment can be recovered from yourself. Any overpayments will be added back to your Council Tax account. However if the overpayment is as a result of an official error, it may be deemed not recoverable. Like all decisions made by us, you have the right to appeal against it.

How to Appeal

If you disagree with the decision you can:

• Ask us to explain the decision
• Ask us to revise (change) the decision
• Appeal against the decision.

If you wish to appeal against a decision we have made, you must do so in writing within one calendar month of the date we notified you of the decision. You must also state why you think the decision is wrong.

Whenever you ask us to explain our decision, or to revise it we will check all parts of your claim and advise you of how we came to the decision. In doing so, if we find anything wrong with the decision we made, we will write to you with the decision and your right of appeal will start again.

If we do not change the decision in your favour we will send the case to the Appeal Service which is an independent body who will look at each individual appeal in an impartial manner.

More Information and Advice

If you require any further information, or an application form please contact:

Benefit Section
Corporate Services
Erewash Borough Council
PO Box 2
Wharncliffe Road
Ilkeston
Derbyshire DE7 5SE

0115 9071010

or call into one of the Finance Customer Services offices at either;

Town Hall, Ilkeston or Civic Centre, Long Eaton
or email: benefits@erewash.gov.uk