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Local Council Tax Support (LCTS)

What is Local Council Tax Support (LCTS)?

What is Council Tax?

The scheme for Gosport

What if my circumstances change?

When and how do I tell you about a change?

 

What is Local Council Tax Support (LCTS)?

On 1 April 2022, the Council introduced a new LCTS scheme. The new scheme only applies to WORKING AGE applicants and uses income bands and household size to work out the level of discount.

There has been no change to the LCTS Pension Age scheme.

Council Tax Support (LCTS) can help pay up to 70% of your Council Tax bill if you are working-age, on a low income and have savings less than £10,000; or up to 100% if you are pension-age, on a low income and have savings less than £16,000. To be able to claim, you must be a named person liable to pay the Council Tax.

If your claim is successful, the appropriate level of discount is applied directly to your Council Tax account, which reduces the amount you have to pay. 

Go to the Make a claim page if you want to apply.

 

What is Council Tax?

Council Tax is set by the Council based upon the value of your property. Your home is placed in one of eight valuation bands based upon its value as at 1st April 1991.

The Council is responsible for collecting Council Tax and this money helps fund local public services including things like Refuse collection, Fire, Police and Education. Gosport Council only keeps 14% of the money collected; the remainder is passed to Hampshire County Council, Fire and Police Authorities.

The scheme for Gosport

Here is a summary of the main changes to the scheme for Working-age applicants only:-

  • LCTS discounts will be made at either 70%, 55%, 40% or 25% of your Council Tax charge and will not exceed £33.13 per week (Band C property)
  • If you receive Income Support, Income-Related Job Seekers Allowance or Income-Related Employment Support Allowance (known as Income-Related Benefits) you will receive a LCTS discount of 70% (band 1). This does not include Universal Credit.
  • If you do not receive an Income-Related Benefit, we will calculate your discount based on your income and people in your household. The table below shows the Household types and Income Bands used:-

          Household type and weekly Income level

Single Person

Single with 1

Child

Single with 2+

Children

Couple

Couple with 1

Child

Couple with 2+

Children

Amount we will reduce

your Council Tax by:

£0 to £100

£0 to £160

£0 to £220

£0 to £140

£0 to £205

£0 to £260

70% (band 2)

£100.01 to

£180

£160.01 to

£240

£220.01 to

£295

£140.01 to

£240

£205.01 to

£281

£260.01 to

£340

55% (band 3)

£180.01 to

£215

£240.01 to

£255

£295.01 to

£350

£240.01 to

£290

£281.01 to

£320

£340.01 to

£400

40% (band 4)

£215.01 to 

£255

£255.01 to

£260

£350.01 to

£450

£290.01 to

£340

£320.01 to

£370

£400.01 to

£430

25% (band 5)

More than £255

More than £260

More than £450

More than £340

More than £370

More than £430

 0%   (band 6)

 

  • If you or your partner get Carers Allowance and/or the Support component of Employment Support Allowance, we will not include this as income. This will be disregarded in the same way as Disability Living Allowance/Personal Independence payments
  • If you or your partner work, we will deduct up to £25 from your earnings
  • If you, your partner or your child get any of the disability benefits below, we will deduct £79.30 from your total income:

Disability living allowance or Personal independence payment

Support component of Employment Support Allowance

Universal Credit 'Limited Capability for Work' element (at the higher rate)

  • Non-dependant deductions will no longer be applied.  This means if you have an adult living with you (who is not your partner), we will not reduce the level of support you are entitled to receive, regardless of how much this person earns or the amount of benefits they claim
  • If you hold capital under £10,000 this will be fully disregarded and will not affect the level of support you can receive; we will not make any deduction from your LCTS award. This means if you and your partner if you have one, holds £10,000 or more in capital, you will not be eligible for LCTS

You can read the full version of the LCTS scheme here.   Local Council Tax Support Scheme 2022-23 (PDF) [1011KB]

What if my circumstances change?

You must report relevant changes about your household size or household income as this may alter the income band and level of discount you are entitled to. We don't need to know about all changes, so here are some examples of changes that should be reported:-

  • Changes to your household income that will result in a different income band taking effect; e.g. income increases or decreases
  • Changes to your household income that may affect how your total income is calculated; such as you or your partner being awarded a disability benefit, Carer's Allowance, or starting work, etc.
  • Household changes, such as a partner moving in or out, a new baby being born, or a child going to live somewhere else
  • You don't need to tell us if other adults in your household leave
  • Your household capital increases to £10,000 or more
  • You or your partner are going to be temporarily absent from your property for more than 4 weeks
  • You change address

When and how do I tell you about a change?

You must tell us about all changes within 21 days of the change happening. If you do not tell us within 21 days we may only be able to amend your claim from the date that you tell us about the change.

If you do not tell us about changes in your circumstances which are later identified, you may be subject to an Administration Penalty (fine) or prosecution.

All changes should be reported using our online 'Change of Circumstances' form, which also allows you to attach pictures or scanned documents as evidence for your change. This form can be completed on a smart phone, tablet or computer. Additional evidence can be provided separately using the Evidence Attachment Form.

 

If you are struggling with paying your Council Tax Bill, you may be able to get a Discretionary payment (or exceptional hardship payment) to help meet more of your Council Tax bill for a short period. Please read our Exceptional Hardship Policy (PDF) [165KB] and visit the Discretionary payment pages HERE to apply.

Exceptional Hardship Payment - application form (PDF) [239KB]

If you would like further information about LCTS, please contact the Benefit Section on 02392 545325 or email us at benefits@gosport.gov.uk.

 

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