Council Tax Reduction - income when the pension-age rules are used

This advice applies to Scotland. See advice for See advice for England, See advice for Northern Ireland, See advice for Wales

If you or your partner has reached State Pension age

If you or your partner has reached State Pension age, the pension-age Council Tax Reduction (CTR) rules usually apply. You can find your State Pension age on GOV.UK.

Even if one of you has reached State Pension age, the working-age CTR rules will apply if you or your partner gets:

Universal Credit
income-based Jobseeker’s Allowance (JSA)
income-related Employment and Support Allowance (ESA)
Income Support.

You can find out more about how income is treated under the working-age rules.

If you’re part of a couple and only one of you has reached State Pension age, for your application to be assessed under the pension-age rules, the person who has reached State Pension age should apply for CTR.

How your income is treated

If the pension-age rules apply, the way a local council treats your income depends on whether you or your partner get Pension Credit. There are different rules if you or your partner:

gets the guarantee part of Pension Credit
gets the savings part of Pension Credit, but not the guarantee part
doesn't get Pension Credit.

The rules about calculating your income for CTR are complicated. You can use an online benefits calculator to check how much CTR you might be entitled to. You can find an online benefits calculators on GOV.UK.

To find out more about CTR, contact your local council. Your local council website might have a tool that you can use to calculate how much CTR you can get. You can find your local council on mygov.scot.

If you get the guarantee part of Pension Credit

Your income and capital is ignored and you'll be entitled to maximum Council Tax Reduction (CTR) if you or your partner gets:

the guarantee part of Pension Credit
both the guarantee part and the savings part.

There might be a deduction for any non-dependants who live in your household.

If you get the savings part of pension credit but not the guarantee part

If you or your partner gets the savings part of pension credit but not the guarantee credit, the Pension Service will need to give your local council the figure for your income that they used to calculate your savings credit.

The local council uses this figure to work out how much Council Tax Reduction (CTR) you're entitled to, but some adjustments will have to be made to the figures.

If you and your partner have capital over £16,000, you cannot get CTR. Capital under £10,000 is ignored.

If you have capital between £10,000 and £16,000, the local council will calculate income from your capital, called tariff income. Tariff income is counted as a weekly income of £1 for every £500, or part of £500, over £10,000.

If you don't get Pension Credit

If neither you nor your partner gets Pension Credit, the local council will need to work out your income as a weekly amount to check if you can get Council Tax Reduction (CTR). They'll use the weekly amount to check how much CTR you're entitled to.

Your income includes your partner's income.

If you and your partner have capital over £16,000, you cannot get CTR. Capital under £10,000 is ignored. If you have capital between £10,000 and £16,000, the local council will calculate income from your capital, called tariff income. Tariff income is counted as a weekly income of £1 for every £500, or part of £500, over £10,000.

If your income is the same as, or less than, your applicable amount then you'll get maximum CTR. Your applicable amount depends on your household circumstances, including whether you live with a partner and have dependent children. There might be a deduction for any non-dependants from the amount of CTR you get.

If your income is more than your applicable amount, the council will:

Step 1: Work out the difference between your applicable amount and your income
Step 2: Work out what 20% of the difference figure at step 1 is
Step 3: Take this 20% amount from your maximum CTR less any deduction for non-dependants.

The result is the amount of CTR you are entitled to.

Water and sewerage charges

You might still have to pay water and sewerage charges, even if you get maximum Council Tax Reduction. Read more about help paying for water and sewerage.