A guide to Council Tax Reduction

Transcription

1 A guide to Council Tax Reduction 1

2 What is Council Tax Reduction? Council Tax Reduction is the replacement for Council Tax Benefit which helps people on a low income with their Council Tax. From 1 April 2013 Council Tax Benefit was abolished by the national government, and councils were asked to replace it with a new local Council Tax Reduction scheme for which the government provided significantly reduced funding. Following consultation with residents, Hackney Council decided that the fairest way of dealing with this reduction in funding would be for all working age claimants to be required to pay at least 15% of their weekly Council Tax bill before being eligible for support. The remaining 85% of their weekly liability is then used in the calculation of any Council Tax Reduction. Under the new scheme, pensioners are protected and continue to receive the same level of support that they did under the old Council Tax Benefit system. You are classed as a pensioner if you have reached the qualifying age for Pension Credit or if you are a couple and one of you has reached the qualifying age for Pension Credit. However, if one of you is in receipt of one of the following benefits you will not be classed as being a pensioner: Income Support Income Based Jobseekers Allowance Employment Support Allowance (Income Related Benefit) Who can claim Council Tax Reduction? You can claim support from the Council Tax Reduction scheme if you are the person liable for paying the Council Tax in your home, and have less than 16,000 in savings or are on guaranteed Pension Credit. 2

3 How is Council Tax Reduction worked out? Council Tax Reduction is means tested. This means we look at your total income and any money that you and your partner (if you have one) have as savings. We then compare it against a minimum allowance that you need to live on, depending on your circumstances. We will also look at the personal circumstances, income and savings of other adults living in your household. What proof do I need to provide? We need to see the following evidence to work out a claim: proof of identity, including two forms of photographic identification for you and your partner (if you have one) proof of a National Insurance number for you and your partner proof of income for you and your partner proof of income for anyone else who lives with you, including any family members or friends living with you two months proof of you and your partner s savings, includes stocks, shares, property, investments and all bank and building society accounts proof of how much rent you pay If you cannot provide these, please contact us at: Hackney Service Centre, 1 Hillman Street, London E8 1DY Phone: Textphone: benefits@hackney.gov.uk Counter Service: Monday to Friday, 9am to 5pm How will I be told about my entitlement? After we have decided how much reduction you will receive, we will send you a letter telling you how much Council Tax Reduction we are awarding you. 3

4 This letter will tell you how we have worked out your reduction. If we have made a reduction to your Council Tax bill this will be paid straight into your Council Tax account, reducing the amount that you have to pay. Please read this letter very carefully and keep it in a safe place. If you disagree with the amount of benefit we are awarding you, you must tell us as soon as possible. You will also be sent a new Council Tax bill which shows you how much Council Tax Reduction has been credited to your Council Tax account and the remaining balance that you need to pay. You must contact the relevant section in the Council Tax department to make arrangements to pay what you owe. Depending on how you choose to pay, you can pay your Council Tax in the following ways: By Direct Debit: please phone You need a bank account to pay this way By credit or debit card: please phone (automated line) Online at By PayPoint or at the Post Office but cash only At a bank, by cash or cheque, and you may be charged You can post cheques made payable to L.B. Hackney and send them to the address below, or pay in person Monday to Friday, 9am to 5pm, at: Hackney Council Cashiers Office, 2 Hillman Street, London E8 1FB Please make sure you have your Council Tax reference available when making payments. If you pay your Council Tax by cash or credit/debit card, your instalments are due on the first of each month. You must ensure that these payments are received on or before the due date. If you pay by cheque you should allow six extra days for the cheque to clear. What about Second Adult Rebate? Second Adult Rebate no longer exists in Hackney s scheme for working age residents, and ceased on 31 March 2013 though if you are a pensioner you can still apply for Second Adult Rebate. 4

5 Second Adult Rebate is a form of Council Tax Reduction which is to help pensioners cope with losing their single person discount when another occupier moves into their home, and is on a low income. This other occupier cannot be your partner. We can reduce your Council Tax bill by up to 25% if you are entitled to Second Adult Rebate, which is based on the income of the other adults who live with you. Your income is not taken into account. A second adult is someone who: is aged 18 or over: and is on a low income: and does not pay rent is not liable to pay Council Tax In most cases the second adult would be an adult son or daughter, a friend, or a relative who is not living in the property on a commercial basis. You cannot receive both Council Tax Reduction and Second Adult Rebate. If you qualify for both we will award whichever is the most beneficial to you. Second Adult Rebate can only be claimed if the person who is liable to pay the Council Tax bill is a pensioner. How can I backdate my Council Tax Reduction claim? We normally make a reduction in Council Tax from the Monday after we receive your claim form and any proof we ask for. However, if you want to backdate your claim and you are of working age and can show a very good reason for not claiming earlier, we can backdate it for up to six months. If you are a pensioner, we can automatically backdate your claim for up to three months. You do not have to show a good reason for not claiming earlier. Whether you are a pensioner or of working age, you will need to provide proof of your income and savings for the time you want to backdate your claim for. 5

6 What happens if I can t get to one of your offices to get help with my application? If you need help filling in your application form but cannot get to our office because of your health or because you are elderly or have a disability, we can visit you at home. Please phone us on for more information. What if my circumstances change? If your circumstances change you must tell us straight away. If you do not, you may lose the reduction on your Council Tax or we may overpay you. If we overpay you, you will have to pay the money back. The types of changes you must tell us about include the following: a change in your address changes in the number of people in your household (for example, if someone moves out or someone new moves in) changes in your income, or the income of anyone in your household All changes in circumstance must be reported within 21 days of the date of the change. More information If you would like any more information, you can contact us in the following ways: Revenues and Benefits, Hackney Service Centre, 1 Hillman Street, London, E8 1DY Phone: Textphone: benefits@hackney.gov.uk Web: Counter enquiries: Monday to Friday, 9am to 5pm Children s Centre, Tyssen Primary School, Oldhill Street, London N16 6AQ Opening times: Wednesdays, 9.30am to 4pm 6

7 If you need help filling in a claim form or you would like to hand in your form or documents, you can also visit the following: Homerton Neighbourhood Office, 92 Well Street, London E9 7JA. Phone: North West Neighbourhood Office, Stoke Newington Municipal Offices, Stoke Newington, London N16 0JR Phone: North East Neighbourhood Office (for Hackney Homes tenants only) 149 Stamford Hill, London N16 5LG Phone: (On Tuesdays and Thursdays from 11am to 4pm there is a service for all Housing Benefit and Council Tax Reduction customers) Shoreditch Neighbourhood Office, Bletchley Court, I Cropley Street, London N1 7PT Phone: De Beauvoir and Queensbridge Neighbourhood Office, 31 De Beauvoir Road, London N1 5SJ Phone: Clapton Park TMO (for Suffolk Estate tenants only), The Housing Officer, Welshpool Street, London E8 4PF Phone:

8 Communications and Consultation, Room 82, Hackney Town Hall, Mare Street, Hackney E8 1EA PJ