Council tax reduction scheme

Mr A and his partner, live in a band E property and they receive their annual demand for 2024/25 for the full charge of £2381.31 (weekly amount of £45.67).

As well as his partner Mr A lives with his adult daughter. Mr A and his partner have savings of less than £6,000 and their weekly unearned income to be taken into account under the scheme is £190 a week. Mr A’s daughter does not work.

Mr A applies for a council tax reduction and is entitled to a reduction of 50% of his liability.

• Step 1. Mr A's liability for the year 2024/2025: £2381.31
• Step 2. Mr A and his partner have unearned income of £190 per week to be taken into account under the council tax reduction scheme (non-protected category). This entitles them to a 50% reduction as shown in the table. 50% of £2381.31 = £1190.66
• Step 3. The reduction is converted to a weekly amount: £1190.66/365 x 7 = £22.83
• Step 4. The weekly reduction is then reduced by the non-dependant charge for the daughter: £22.83 - £7.91 = £14.92
• Step 5. The weekly council tax reduction is converted to a yearly reduction: £14.92/7 x 365 = £777.97
• Step 6. Mr A's council tax liability for the year after his reduction is calculated: £2381.31- £777.97 = £1603.34