Changes to Local Council Tax Reduction

From April 2017 there will be important changes for people getting Council Tax Reduction who have adults, other than their partner, living with them. Adults who live with a person claiming Housing or Council Tax Benefit are known as “non dependants”.

Deductions are usually made from a claimant’s Local Council Tax Reduction if non dependants live with them.

Separate deductions are applied to both Housing and Council Tax Benefit. The amount deducted depends on the non dependant’s income.

The non dependant deductions to be currently applied to Council Tax Benefit are shown in the table below:

Non-dependants circumstances	Working Age Claimants from April 2022
Aged over 18 (All Income)
Gross Income less than £195	£4
Gross Income between £195 and £281.99	£8
Gross income between £282 and £370.49	£12
Gross Income of £370.50 and above	Local Council Tax Reduction is not awarded, where any Non dependant has income at this level
	Pension Age Claimants from April 2022
Aged over 18 and in Remunerative work
Gross income less than £224, or working less than 16 hours per week (or on Maternity Leave or sick leave)	£4.20
Gross income between £224 and £388.99	£8.55
Gross income between £389 and £483.99	£10.70
Gross income above 484	£12.85

There is no deduction for non dependants when the claimant or their partner is either:

registered blind or
gets attendance allowance or the care component of Disability Living Allowance for themselves or their partner

If you require any information on these changes and how they affect your Housing and Council Tax Benefit you can call Tower Hamlets Benefits Service direct on 020 7364 7453 or email us at benefits@towerhamlets.gov.uk.