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Council Tax Reduction Scheme Working Age

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Council Tax Reduction Scheme Working Age Council Tax Reduction Scheme Working Age Scheme Effective from 1 April 2021 1 Foreword This document sets out the London Borough of Hillingdon’s Council Tax Reduction Scheme for Working Age applicants. This scheme shall have effect 1 April 2021. We have the scheme rules for pension age and working age applicants split into different documents. This split is to make the reading of the documents easier, to improve transparency, and to enable the scheme documents to focus on the needs of the different age groups. There are different scheme rules published for pension age applicants. These scheme rules replace (supersede) the earlier scheme rules documents from 1 April 2021. Relevant legislation for the existence of these scheme rules includes: The Welfare Reform Act 2012 The Local Government Finance Act 1992 The Council Tax Reduction Schemes (Prescribed Requirements) (England) Regulations 2012 (Statutory Instrument 2012 No.2885). There have been further Statutory Instruments amending these prescribed requirement regulations and details of these can be supplied on request. The previous scheme rules still apply for days prior to 1 April 2021. This Scheme complies with the requirements of s13A and Schedule 1A of the Local Government Finance Act 1992. This Scheme does not and cannot make any changes to the scheme of other discounts and exemptions available in Council Tax. The authority will continue to comply with its statutory duty to award discounts and exemptions in appropriate cases for example (but not limited to): where there is a single occupier; where the charge payer has a severe mental impairment; where a band reduction is appropriate because of disability. 2 The Policy Working Age: This scheme has two sections: Section 1 is the scheme rules, some are required by law, whilst others are decided by the London Borough of Hillingdon following a public consultation and approval by the full Council. Section 2 contains more general guidance and information which is helpful for applicants to be aware of. For clarity the contents of Section 2 are not scheme rules but issues we wish to raise awareness of. We have used a structure of point, paragraph, and sub-paragraph for these scheme rules. As an example 55 Calculation of Income on a weekly basis is as follows: The whole of that short section numbered 55 is called a point. That point has four paragraphs numbered 1), 2), 3) and 4). There are sub-paragraphs which in the point are listed as a), b) etc but in some points a sub-paragraph or further sub-paragraph uses i), ii); or (aa) etc. This applies equally if content is single bracketed a) or double bracketed (a) or unbracketed. We reserve the right to correct any indexing errors. 3 Banding Scheme: The following Banding grid is used to assess your entitlement to a Council Tax Reduction, below the banding grid and a summary. Further explanation will be given later in these rules. Based on weekly income Household Single Couples Family 1 child Family 2 or more type: children CTR Lower Upper Lower Upper Lower Upper Lower Upper CTRS Banding Limit Limit Limit Limit Limit Limit Limit Limit Reduction Band 1 £0.00 £180.00 £0.00 £250.00 £0.00 £330.00 £0.00 £500.00 100% Band 2 £0.00 £180.00 £0.00 £250.00 £0.00 £330.00 £0.00 £500.00 90% Band 3 £0.00 £90.00 £0.00 £130.00 £0.00 £150.00 £0.00 £260.00 75% Band 4 £90.01 £120.00 £130.01 £170.00 £150.01 £210.00 £260.01 £340.00 55% Band 5 £120.01 £150.00 £170.01 £210.00 £210.01 £270.00 £340.01 £420.00 35% Band 6 £150.01 £180.00 £210.01 £250.00 £270.01 £330.00 £420.01 £500.00 15% The key summarized principles of the banding scheme (Subject to capital limit and non-dependent deductions) are: a) The level of discount (as shown in the grid) will be based on the total net income (determined by the Hillingdon Council in accordance with the scheme rules) of the applicant and their partner, b) Income levels can vary in accordance with household size and still receive the same level of discount, c) Payments for the claimant or a partner a war widow's pension, war disability pension or payments under the armed forces and reserve forces compensation scheme will still be disregarded under the proposed scheme. If for recipients of these war pension and armed forces payment recipients there is any other net income that totals less than the upper level in Band 1 a discount of 100% will be awarded against their liability for Council Tax. This award of 100% will not be made if the capital of the claimant and their partner (if any) exceed the capital limit, or if non-dependent deductions fall to be made. d) Where applicants or their partners or their children (child or young person as defined in these rules) are in receipt of Disability Living Allowance, Personal Independence Payments, Attendance Allowance, Employment and Support Allowance Support Component, the Disabled Child Element of Universal Credit 4 or is registered blind they are treated as vulnerable. If their net income totals less than the upper level in Band 2 a discount of 90% will be awarded against their liability for Council Tax. This award will not be made if the capital of the claimant and their partner (if any) exceed the capital limit, or if non-dependent deductions fall to be made. e) Applicants who have a total net income less than the levels in Band 3 will receive a discount of 75% against their liability for Council Tax. This will also apply to those applicants receiving Income Support, Income-Related Employment and Support Allowance, and Income-Based Jobseekers Allowance or Universal Credit without earnings, for clarity they will fall in the Band 3. Where applicants are not in receipt of those benefits and their income is above the levels specified in Band 3, Council Tax Reduction shall be awarded at the appropriate level (Band 4,5, or 6). This award will not be made if the capital of the claimant and their partner (if any) exceed the capital limit, or if non-dependent deductions fall to be made, or if the applicant is otherwise not entitled in accordance with this scheme. f) Applicants who have total net income levels above the levels shown in the grid for their household composition will receive no discount. g) There is a transitional protection scheme for some recipients with 3 or more children (or young persons). h) Where there is one or more non-dependents the appropriate deduction or deductions in accordance with these scheme rules will be made. i) The calculation will be made after first deducting any discounts from the Council Tax. Capital: For working age claimants £6,000 capital is disregarded. If the capital exceeds £6000 there will be no entitlement to Council Tax Reduction. Capital is calculated in accordance with these scheme rules. Uprating: During the financial year 2021/22 we will consider if the bands are to be uprated or changed for 2022/23. Universal Credit: The summarized principles in terms of assessing Universal Credit Income are: 1) The Housing Costs Element; Childcare Costs Element; and Carer Element; the Disabled Child Element (Universal Credit Regulations 2013 regulation 24(2)), and the Limited Capability for Work and Work Related Activity (if any) are deducted from the award made to the claimant or their partner. 5 2) Deductions and advance payments are added to your award. 3) Where the claimant and partner (if any) have no earned income the claimant will fall in band 3 unless they also meet the criteria for band’s 1 or 2. 4) The capital limit of £6000 and non-dependent deductions also apply to applicants in receipt of Universal Credit. General Provisions: The Council reserves the right to amend any part of the scheme that relates to working age applicants in the current and/or future years to account for changes in legislation that affect the scheme. Transition: A claim for Council Tax Benefit in respect of which there is an award of entitlement at the end of the day of 31 March 2013, or in respect of which no decision has been made, will be treated as a claim for Council Tax Reduction from 1 April 2013. This may apply to claims for Council Tax Benefit which by 31 March 2013 have been refused as having no entitlement but are subsequently revised so there is entitlement at 31 March 2013. Discretionary Awards - a reduction under section 13A(1)(c) of the 1992 Act: The London Borough of Hillingdon has identified a class which it considers to be in general financial need of a discount. It relates to persons aged 65 or over. The conditions are of eligibility for this group are: · You (or your partner) are responsible for the council tax on a property in Hillingdon, in which you are living on 1 April of the Council Tax year in question, · and either you or your partner will be 65, or over, on 31 March 2021, . You are in receipt of this discount continuously from discount 31 March 2021 · and you are not otherwise receiving a Council Tax Reduction. Further details on eligibility can be found on the Hillingdon Council website. All other applications for a Discretionary Reduction will be judged on their individual merits. We will not have “blanket policies” but applicants will be expected to demonstrate substantial or exceptional extra need and regard will be had to the needs of other applicants for a Council Tax Reduction.
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