Plymouth Council Tax Reduction Savings Limit

The £6,000 Hard Cut-Off

Plymouth City Council applies an absolute capital limit of £6,000 for working-age Council Tax Support. If your combined household savings reach £6,000 or more, your entitlement drops to zero — regardless of how low your income is.

This isn't a taper. There's no gradual reduction as your savings grow. At £5,999 you could qualify for the full 80% discount. At £6,000 you get nothing. A disabled claimant receiving Income-Related ESA with zero assessed income still pays their entire Council Tax bill if their savings hit that threshold.

How Plymouth's Limit Compares

The £6,000 figure is noticeably lower than other means-tested systems. Universal Credit has a lower threshold of £6,000 but an upper limit of £16,000 — between those amounts, a "tariff income" is assumed. Housing Benefit uses the same £6,000–£16,000 range. The national pension-age Council Tax Reduction scheme also uses £16,000.

Plymouth's working-age scheme doesn't use tariff income at all. Capital is a simple binary test: under £6,000, it's ignored completely; at £6,000, you're out.

What Counts as Capital

Plymouth includes:

• Current account balances
• Savings accounts
• ISAs (Cash ISAs, Stocks and Shares ISAs)
• Premium Bonds
• Post Office savings
• Shares and investments
• Trust fund holdings
• Equity in land or secondary property (not your main home)
• PayPal balances

Both partners' capital is combined for the test. If you hold £3,500 and your partner holds £2,600, your household total is £6,100 — over the limit.

What May Be Excluded

Certain capital is disregarded under national rules that Plymouth follows:

• Official compensation payments (criminal injuries, government compensation schemes)
• Backdated benefit arrears paid by the DWP
• Personal injury payouts held in formal trusts
• The home you live in — your main residence isn't counted

Whether a payment is disregarded depends on its type and the applicable national rules. Plymouth's scheme identifies official compensation payments, past backdated benefit arrears, and personal-injury payouts held in formal trusts as examples that may be excluded. Keep records showing the source of any payment you believe should be disregarded.

The Catch-22 With the Hardship Fund

If your savings push you over £6,000 and you lose Council Tax Support entirely, you might think the Exceptional Hardship Fund could help bridge the gap. It can't. Plymouth's EHF requires you to already have an active CTS award before you can apply. Households disqualified by the capital test are locked out of hardship relief entirely.

This creates a genuine trap for people who've saved a modest emergency fund. A redundancy payment, a small inheritance, or even careful budgeting can tip you over £6,000 — removing both your CTS and your access to discretionary help.

Practical Considerations

If you're approaching the £6,000 threshold, there are a few things worth understanding:

The £6,000 threshold is strict. If a temporary balance takes your combined capital to £6,000 or above, report it accurately and explain the circumstances. A payment may be disregarded only if it qualifies under the applicable rules.

Keep records of genuine payments. If you pay a debt, keep proof of the payment and report your current capital accurately. If you are considering a payment or transfer mainly to change your eligibility, seek advice before acting.

Report capital accurately. Plymouth's working-age test is a strict £6,000 limit. If you are close to it, give the council a clear record of your assets and any payments or transfers so it can assess your circumstances.

The Plymouth Council Tax Reduction Guide explains exactly how Plymouth's capital assessment works, which disregards apply, and how to document your capital position clearly when you apply.

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