BCP Council Tax Reduction Eligibility and Income Limits

The Four Conditions You Must Meet

BCP Council's working-age Council Tax Reduction scheme has four eligibility conditions, and you need all of them:

1. You are liable for council tax on a property in Bournemouth, Christchurch or Poole (you or your partner must be named on the bill)
2. You are working age — below State Pension credit qualifying age, or part of a mixed-age couple on Universal Credit
3. Your household capital is not above £16,000, unless you receive the Guarantee Credit element of Pension Credit — that includes bank accounts, savings, ISAs, premium bonds, stocks, and any property you own besides your home
4. You have the right to claim public funds — not subject to immigration control with a No Recourse to Public Funds condition

If you have reached State Pension credit age, a separate national scheme applies with more generous rules (up to 100% support, no working-age 20% minimum contribution, and no band cap).

How the Means Test Works

BCP Council compares your total net household income against your "applicable amount" — a calculated figure based on your household composition. The applicable amount includes personal allowances for you and your partner, child allowances (capped at two children for claims established after April 2019), and any disability or carer premiums you qualify for.

If your income is at or below the applicable amount, you receive the maximum support (80% of your eligible council tax for standard claimants, 100% for protected groups).

If your income exceeds the applicable amount, the council reduces your award by 20p for every £1 of excess income. So if your income is £50 per week over the applicable amount, your weekly award drops by £10.

The council assesses earnings net of income tax, National Insurance, and half of any voluntary occupational or personal pension contributions. Variable earners get averaged over a representative period — typically five weeks for weekly pay or two months for monthly pay.

Capital: The £6,000 and £16,000 Thresholds

Capital above £16,000 bars you entirely (unless you receive Guarantee Pension Credit). Below £6,000, savings are completely ignored. Between £6,000 and £16,000, the council assumes you earn £1 per week for every £250 (or part of £250) above £6,000 — this "tariff income" gets added to your assessed income.

For example, if you have £9,500 in savings, that is £3,500 above the £6,000 threshold. Divide by 250 and round up: 14. The council adds £14 per week to your income for the means test.

What Counts as Income (and What Does Not)

Counted in full: Jobseeker's Allowance (contribution-based), Employment and Support Allowance (contribution-based), State Pension, Carer's Allowance, net earnings from employment.

Fully ignored: Personal Independence Payment, Disability Living Allowance, Attendance Allowance, Child Benefit, Guardian's Allowance, War Disablement Pension.

Universal Credit: The council uses the net UC award figure sent electronically by the DWP. Earned income disregards built into UC are respected.

Protected Groups Get Better Terms

If you or your partner receives any of these, you are classified as a protected group:

• Disability Premium, Enhanced Disability Premium, or Severe Disability Premium
• Disabled Child Premium
• Carer Premium or Carer's Allowance
• ESA Support Component
• War Disablement or War Widow's Pension
• Universal Credit with the LCWRA element, Carer element, or Disabled Child element

Protected status removes the 20% minimum payment, lifts the Band C property cap, and allows support up to 100% of your actual council tax. It is worth checking carefully — residents sometimes miss their protected status when self-applying and end up with a lower award than they are entitled to.

Work Out Where You Stand

The eligibility rules are detailed but predictable once you know the structure. The BCP Council Tax Reduction guide includes an award calculation worksheet so you can estimate your entitlement before applying. Citizens Advice BCP (0808 278 7939) also offers free eligibility checks.

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