Benefits letters

Terms: eligible council tax, non-dependant deductions, excess income

What does 'eligible council tax' mean?

This is the amount of council tax on which we can base the calculation. It is the maximum amount of council tax support that you can receive if there are no non-dependant deductions. It is usually the amount of council tax that you are liable to pay for a full year after any discounts and exemptions have been applied, minus a 12% reduction which is part of our local council tax support scheme. The figure is then converted to a weekly amount.

Council tax support is subject to a restriction for properties in Bands F, G and H. If your property is in one of these bands, your council tax support will be calculated using the amount of council tax that would be payable if the property was in band E.

If you are jointly liable for council tax with someone who is not your partner, your share of the council tax (for example, 50%) will be used in the calculation of your council tax support.

What are 'non-dependant deductions'?

If there is an amount for this stated on your award letter, it means that we have made a deduction because you have another adult living in the property who is 18 or over and not your partner. Find out more about non-dependants

What does 'excess income' mean?

This is the amount you have left after your applicable amount has been taken away from your total income. If you have excess income, your maximum housing benefit will be reduced by 65% of your excess income, and your maximum council tax support will be reduced by 20% of your excess income.

For example:

  • Total income (after disregards): £150 per week
  • Applicable amount: £120 per week
  • Excess income: £30 per week
  • 65% of excess income: £19.50
  • 20% of excess income: £6

If the eligible rent was £70 per week, £50.50 would be awarded as housing benefit (£70 rent minus £19.50 excess income).

You would have to pay £19.50 to make up your rent to the correct amount.

If the council tax liability was £10 per week, with any exemption or discount applied, 12% would be deducted to give the eligible council tax: £10 minus £1.20 (12% of £10) = £8.80.

£2.80 would be awarded as council tax support (£8.80 council tax minus £6 excess income).  

You would have to pay £6 plus £1.20 (the council tax reduction) = £7.20 to make up your council tax.      

Last updated: ‎09/05/2024 08:28