Council tax reduction eligibility while employed

Yes, you can get Council Tax Reduction (sometimes still called Council Tax Support) even if you are working. It is not limited to people who are out of work.

How it works:

Council Tax Reduction is a local scheme administered by your local council. Since April 2013, each council in England has designed its own scheme (with some national rules protecting pensioners). This means the exact eligibility criteria, income thresholds, and taper rates vary from one council to another.

General principles:

1. The scheme is means-tested. Your entitlement depends on your income, savings, household composition, and the amount of Council Tax you are liable to pay.

2. Being in work does not disqualify you. Many working people on low or moderate incomes receive a reduction. The council will assess your earnings alongside any other income.

3. Most schemes include an earnings disregard, meaning a certain amount of your weekly earnings is ignored before the council calculates your entitlement. The size of this disregard varies by council and may depend on whether you are single, part of a couple, a lone parent, or disabled.

4. Most schemes apply a taper, typically around 20 per cent, meaning that for every pound of income above the applicable threshold, your reduction decreases by around 20 pence. Again, this varies locally.

5. There is usually a capital limit. If your savings exceed a certain amount (often around 6,000 pounds, with a hard cut-off at 16,000 pounds for working-age claimants), you may receive a reduced amount or nothing at all. These figures differ between councils.

6. If you receive Universal Credit, your council may use your UC award notice or your reported earnings to assess your entitlement. Some councils have moved to a banded income scheme, where your discount depends on which income band you fall into rather than a precise calculation.

Practical steps:

1. Check your council's website for its specific Council Tax Reduction scheme. Search for your council name followed by "Council Tax Reduction" or "Council Tax Support."

2. Apply directly to your council. Most allow online applications. You will normally need to provide proof of income, such as payslips or your Universal Credit award, proof of identity, and details of your housing and household.

3. If your income changes, report this promptly to avoid overpayments or underpayments.

4. If your application is refused or you receive less than expected, you have the right to request a written explanation and then challenge the decision through the council's internal review process, and ultimately to the Valuation Tribunal if necessary.

Key point:

There is no blanket rule that working people cannot claim. The question is always whether your income and circumstances fall within your council's eligibility criteria. Many people in part-time work, on low wages, or receiving in-work benefits such as Universal Credit do qualify for a meaningful reduction.