Council Tax Benefit and Disability Reduction Schemes

The Council Tax benefit scheme assists taxpayers on a low income, the disability reduction scheme assists taxpayers in dwellings substantially altered to meet the needs of a severely disabled resident.

Use our benefits calculator www.havant.gov.uk/benefitscalculator/ for an instant on-line benefit estimate.  Remember this calculation is an estimate based on the information you supply and there are certain exclusions that may apply.  For an accurate assessment you must complete and return the Council’s Housing and Council Tax Benefit application form together with supporting documents.

Council Tax Benefit

Second Adult Rebate

Disability Reduction Scheme

Disability Reduction Scheme Calculation of Reduction

Disability Reduction Scheme Specified Facilities

Transitional Relief Scheme

Council Tax Benefit ('CTB')

A taxpayer's entitlement to CTB involves establishing their eligible Council Tax liability and confirming their household and income details. The eligible Council Tax is the amount due after deduction for disability reduction, transitional relief(see note below) or single person discount.

The maximum amount of CTB that can be awarded is 100% of the eligible Council Tax liability and the award is paid as a credit to the Council Tax account with any amendments to entitlement being credited or debited to the account. If there are other adults resident in the dwelling their presence will disqualify any entitlement to a discount whilst also reducing the amount of the taxpayers CTB entitlement. To re-dress that situation there is a scheme entitled 'second adult rebate' where an alternative assessment is carried out in prescribed circumstances and the 'better buy' amount awarded.

Second Adult Rebate ('SAR')

A 'second adult' is someone who lives with the Council Tax payer; is not jointly liable pay the Council Tax; disqualifies the Council Tax payer from claiming a discount; and does not pay rent to the council taxpayer. A typical example may be is a grown-up child living in the family home. The SAR is a percentage of the eligible council tax and is calculated based on the second adults income. The calculation is as follows:

Where there is more than one 'second adult' in receipt of income support or income-based JSA only one of them will count and the combined gross income of all the second adults will be aggregated together. The effect is that the maximum SAR will be 25%. Whenever an application form for Council Tax benefit indicates the second adult rebate scenario is relevant both CTB and SAR will be calculated and the award will be whichever is most advantageous to the taxpayer. This is known as the better buy option.

Disability Reduction Scheme

The valuation band of a dwelling reflects its market value and the disability reduction scheme provides for the amount of liability to be reduced if a disabled person resides there and the dwelling includes specified facilities required to meet their needs. A disabled person is a person who is substantially and permanently disabled (whether by illness, injury, congenital deformity or otherwise). The person who receives the reduction is the person liable for the dwelling, who need not be the disabled person, and to receive the reduction he must make a written request to the billing authority.

Disability Reduction Scheme Calculation of Reduction

The calculation for dwellings in valuation bands B to H is by applying the next lowest band to that shown for the dwelling. For example a property in band H will be charged at band G and any other entitlement the taxpayer has, such as a discount or Council Tax Benefit, will also be calculated as if their liability is for a band G dwelling. This is known as the 'alternative valuation band'. As there is no lower band than band A the alternative valuation band is replace by substituting an amount set at 5/9^th of the band D liability.

Disability Reduction Scheme Specified Facilities

• A room that is not a bathroom, kitchen or lavatory and which is predominantly used to provide therapy for, or otherwise meeting the needs of, a disabled resident in the dwelling.
  
• A bathroom or kitchen which is not the only bathroom or kitchen within the dwelling and which is required for meeting the needs of a disabled resident in the dwelling.
  
• Sufficient floor space to permit the use of a wheelchair required for meeting the needs of a disabled resident in the dwelling.
  
• References to anything being required for meeting the needs of a qualifying individual are references to its being essential or of major importance to his well-being by reason of the nature and extent of his disability.
  
• A wheelchair is not required for meeting an individual's needs if he does not need to use it within the dwelling concerned.

Transitional Relief Scheme