We propose introducing income bands with a lower and upper income limit. The level of discount will be based on the total net income of the resident and their partner. Income levels can vary in accordance with the household size and still get the same level of discount.
The grid below is shows how we would work out the discount. The grid is for illustrative purposes with estimated amounts. Exact figures may change before the final scheme is adopted.
The benefits are:
- We will not need to change a resident’s Council Tax reduction unless their household income goes up or down by around £50 a week.
- Residents can do a few hours of overtime, for example, without worrying about telling us about changes to their claim.
- Fewer changes makes it easier for residents to work out their income and spending.
- It should be simpler and easier for residents to understand.
- It will save the Council in administration costs. Less cost to us is less cost to the Council Tax payer.
- Applicants who get benefits such as income support, income related employment and support allowance and income based Jobseekers allowance will not be affected.
However:
- Households with more than two children may get less support to reduce their Council Tax. See proposal two as well.
If you know anything else the Council needs to consider please let us know in your response.
**In the table below the amount in brackets shows the monthly income**
| Band | Discount | Single person income level in average week (month) | Couple (no children) income level in average week (month) | Lone parent or couple with one child income level in average week (month) | Lone parent or couple with 2 or more children income level in average week (month) |
|---|---|---|---|---|---|
| 1 | 80% | £0 to £94.99 (£0 – £411.62) | £0 to £134.99 (£0 – £584.96) | £0 to £184.99 (£0 – £801.62) | £0 to £234.99 (£0 – £1018.29) |
| 2 | 60% | £95 to £144.99 (£411.67 – £628.29) | £135 to £184.99 (£585 – £801.62) | £185 to £234.99 (£801.67 – £1018.29) | £235 to £284.99 (1018.33 – £1234.96) |
| 3 | 40% | £145 to £194.99 (£628.33 -844.96) | £185 to £234.99 (£801.67 – £1018.29) | £235 to £335.00 (£1018.33 – £1234.96) | £285 to £334.99 (£1235 – £1451.62) |
| 4 | 20% | £195 to £245 (£845 – £1061.67) | £235 to £285 (£1018.33 – £1235.00) | £285 to £335 (£1235 – £1451.67) | £335 to £385 (£1451.67 – £1668.3) |
Read about Proposal Two
