Dudley Council Tax Hardship Fund and Section 13A Discretionary Relief

When CTR Isn't Enough

Dudley's working-age Council Tax Reduction scheme leaves every claimant paying at least 60% of their eligible liability. For a single person in a Band A property, that's about £643.45 per year — about £53.62 a month — even at maximum entitlement with zero income above the applicable amount.

For households in genuine financial crisis, Dudley operates a discretionary fund under Section 13A(1)(c) of the Local Government Finance Act 1992. The council allocates £300,000 per year to this scheme. It's not an entitlement — it's discretionary, meaning the council decides each case individually.

The Eligibility Tests Are Strict

Section 13A relief in Dudley has much tighter requirements than standard CTR:

Capital ceiling of less than £3,000. Standard CTR allows up to £16,000 in savings. Section 13A drops that to strictly under £3,000. If you and your partner have £3,000 or more combined across all bank accounts, investments, and assets, you do not meet this capital test.

Exceptional financial hardship. You must demonstrate that paying the remaining council tax bill after CTR causes genuine hardship beyond normal low-income budgeting. The council expects to see that you've already taken all reasonable steps to maximise your income and benefits.

Band C cap still applies. Even discretionary relief is calculated against the Band C rate, not your actual bill if you're in a higher band.

What "All Reasonable Steps" Means

Before Dudley will consider a Section 13A application, they expect you to have:

• Applied for Council Tax Reduction and received the maximum award you're entitled to
• Claimed all other benefits you may be eligible for (Universal Credit, PIP, Carer's Allowance)
• Explored whether you qualify for any other discounts (single person discount, disabled band reduction, severe mental impairment exemption)
• Contacted free debt advice services if you have arrears

The council wants to see that discretionary relief is the last resort, not the first step. If your income or benefit situation suggests unclaimed entitlements, they'll likely direct you to those before considering hardship relief.

How to Apply

Dudley provides a specific online form for Section 13A applications — "Discretionary Council Tax Relief / Section 13A" — accessible through dudley.gov.uk. You can also request the form by phoning 0300 555 8100.

The application asks for:

• A full income and expenditure breakdown showing what you earn, what you spend, and why the gap makes council tax unaffordable
• Two months of bank statements for every account you and your partner hold
• Evidence of debts, arrears, or financial obligations that contribute to your hardship
• Proof that you've applied for all relevant benefits and discounts

Present your bank statements clearly. Dudley's officers will review them line by line. Unexplained cash withdrawals, payments to gambling sites, or spending that appears inconsistent with claimed hardship can undermine an application.

The Crisis and Resilience Fund

Separate from Section 13A, Dudley restructured its emergency support from 1 April 2026 into the Crisis and Resilience Fund (CRF). The housing payment component of CRF helps with rent shortfalls, deposits, and rent arrears for residents on Universal Credit Housing Element or Housing Benefit.

CRF doesn't directly cover council tax — that's Section 13A's territory. But if rent arrears are contributing to your overall financial crisis, a CRF housing payment could free up enough budget to manage the council tax portion. The two schemes operate alongside each other.

If You're Refused

A Section 13A refusal can be appealed to the Valuation Tribunal for England within two calendar months of the written refusal notice. The VTE appeal is free and independent of Dudley Council. You'll need to show that the council's decision was unreasonable given your circumstances — not just that you disagree with it.

Before appealing, consider whether your circumstances have changed since the application. A fresh Section 13A application with updated evidence may be quicker than the tribunal route.

For households facing council tax debt alongside hardship, free debt advice from StepChange (0800 138 1111), National Debtline (0808 808 4000), or Citizens Advice Dudley (0808 278 7919) should be your first call. The Breathing Space scheme can provide up to 60 days of legal protection from enforcement action while you get advice.

The Dudley Council Tax Reduction guide covers the full Section 13A application process and includes a Decision Audit Worksheet to help you prepare your case.

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