Council Tax Reduction Eligibility in North Northamptonshire: Income, Savings and Capital Limits

The Hard Savings Cap: £16,000

If your total capital — cash, bank accounts, ISAs, premium bonds, shares, and non-domiciliary property — exceeds £16,000, you're automatically disqualified from the standard working-age Council Tax Reduction scheme in North Northamptonshire. Separate discretionary discounts, such as the care-leaver discount, are assessed under their own rules.

Your primary home is excluded from the capital calculation. But everything else counts, including savings accounts you've forgotten about.

Below that ceiling, the rules split into two bands:

• Under £6,000: your savings are completely ignored in the means test
• £6,000 to £16,000: you're assessed for "tariff income" at £1 per week for every £250 (or part) above £6,000

So someone with £10,000 in savings has £4,000 above the lower threshold. Divided by £250, that's 16 units — generating £16/week in tariff income added to your real income for assessment purposes.

The Income Taper

NNC uses a traditional means-tested system, not an income-banded grid. The calculation compares your net weekly household income against your "applicable amount" — the government-set figure for basic living costs based on your circumstances.

If your income is at or below the applicable amount, you receive the maximum award (75% of your net council tax liability).

If your income exceeds the applicable amount, NNC deducts 20p from your award for every £1 of excess. This is the "20% income taper."

The applicable amount varies by household — a couple with children has a higher applicable amount than a single adult with no dependants, reflecting higher assessed needs.

What Counts as Income

Counted in full: wages (after tax, NI, and 50% of pension contributions), Employment and Support Allowance (contribution-based), Carer's Allowance, State Pension, occupational pensions, and most of your Universal Credit award.

Disregarded completely: Disability Living Allowance, Personal Independence Payment, Attendance Allowance, Armed Forces Compensation, War Disablement Pension, Child Benefit, and the childcare element of Universal Credit.

Earnings disregards are applied before the taper kicks in:

• Single person: £5/week
• Couple: £10/week
• Lone parent: £25/week
• Household qualifying for disability or carer premium: up to £20/week

The UC Housing Element is excluded from the income calculation to avoid double-counting rent support.

Residence and Immigration Rules

You must be living in the property as your sole or main residence, and you need the legal right to reside in the UK. Specifically:

• UK nationals who meet the habitual residence test qualify
• EU citizens with Settled Status qualify; Pre-Settled Status holders need an underlying right to reside (worker, self-employed)
• Anyone with Indefinite Leave to Remain, Refugee Status, or Humanitarian Protection qualifies
• Anyone with a "No Recourse to Public Funds" visa condition is ineligible

Mixed-Age Couples

If one partner has reached State Pension Credit age and the other hasn't, the household is treated as working-age for CTR purposes. The 75% cap applies. The only exception is couples who have been continuously entitled to Pension Credit or legacy Housing Benefit since before May 2019.

Care Leavers Get Extra Protection

Former care leavers aged 18 to 20 who were under Northamptonshire Children's Trust receive a dedicated Section 13A discount covering 100% of any remaining liability after standard CTR. Those aged 21 to 24 aren't covered automatically but can apply with a supporting statement from their social worker.

Where the 75% Cap Bites

Even on maximum CTR, a Band D household pays at least £479.56/year (25% of £1,918.23). For a Band A property in Kettering, the minimum is about £319.71. That's the floor — and it increases every year with the council tax rate.

The North Northamptonshire Council Tax Reduction guide walks through the full eligibility assessment step by step, including a calculation worksheet to estimate your actual award.

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