Council Tax Support, often known as Council Tax Reduction (CTR) is a benefit designed to help those on low incomes with their Council Tax bills. Each local authority in England will run its own CTR scheme with its own specific set of rules, but some general principles apply to most schemes about who’s eligible.
For example, you’ll usually only be entitled to Council Tax Support if you have savings and capital of less than £16,000. If you have capital between £10,000 and £16,000, your local authority will typically treat this as income, and assume that you have an income of £1 a week for each £500 of capital between these thresholds,
However, if you’re currently receiving the guarantee part of Pension Credit, you’ll be eligible to claim a full reduction on your Council Tax and your local authority will disregard your income and your capital.
If you only get the savings element of Pension Credit, your local authority will look at your income and capital when assessing how much support you’re entitled to. Again, you won’t be entitled to any Council Tax Support if you have more than £16,000 of capital.
If you’re claiming Council Tax Support and receive a redundancy pay-out, pension drawdown or other lump sum payment that pushes your capital above the £16,000 threshold, you’ll need to notify your local authority who will then determine whether you’re still eligible for any support.