Housing Benefit - Council Tax Benefit

Council Tax Benefit

Council Tax Benefit is assessed in a similar manner to housing benefit, with a few differences. Whereas housing benefit uses the weekly rent as a basis for assessment, council tax benefit uses the annual amount from the claimant's council tax account, calculated on a weekly basis by dividing the number of days in the year and multiplying the figure by 7. Any discounts awarded to the account are taken into account (so that the claimant's council tax benefit award will never exceed the actual liability).

Excess income and non-dependant deductions are calculated in broadly the same way as housing benefit, except that the taper is 20p, and non-dependant deductions are significantly lower

Council Tax Benefit is paid as a rebate against the Council Tax Account for the remainder of the financial year benefit was first applied for - the claimant does not normally receive the money directly. Where a claimant has paid Council Tax, the Local Authority would normally refund the credit on the bill. Both benefits, although following the same principles are quite separate legally. Usually, a separate application for council tax benefit is not required, as most Councils have a combined claim form and the council tax benefit would be assessed at the same time as housing benefit, if the claimant is eligible for both. Where one benefit ends and the other is still in payment a new claim will be required for the benefit that has ended if the circumstances of the claimant change.