Sheffield Council Tax Hardship Fund (CTHS): How to Apply

Sheffield's working-age Council Tax Support caps out at 77% of your bill. If you cannot manage the remaining 23%, the Council Tax Hardship Scheme (CTHS) exists to bridge the gap — but it is discretionary, budget-limited, and only available to people already receiving Council Tax Support.

What the CTHS Is

The CTHS operates under Section 13A(1)(c) of the Local Government Finance Act 1992. It gives Sheffield City Council the power to reduce an individual's Council Tax liability further — potentially to zero — when exceptional financial hardship is demonstrated.

Sheffield funded the scheme for 2026/27 with an annual budget of approximately £2.4 million. Once that budget is exhausted for the year, no further grants can be made until the next financial year.

The CTHS is separate from — but linked to — the Crisis and Resilience Fund Housing Payment (CRFHP), which covers emergency housing costs. Both are accessed through the same application portal, and Sheffield assesses eligibility for both when you apply.

Who Can Apply

Two prerequisites:

1. You must already be receiving Council Tax Support (CTS). If you have not yet applied for CTS, do that first. CTHS is for households receiving CTS who remain in financial hardship and cannot afford their residual Council Tax liability.
2. You must demonstrate genuine financial hardship. The council needs to see that your income, after essential living costs, genuinely cannot cover the remaining Council Tax liability.

If you are concerned that the 23% minimum will create hardship, check the portal criteria and contact the council before arrears build up.

How to Apply

Sheffield processes CTHS applications through the joint Crisis and Resilience Fund / CTHS online portal. The application asks for a detailed breakdown of your weekly household income and expenditure:

Income: wages, benefits, pensions, any other money coming in.

Essential outgoings:

• Rent or mortgage (net of housing benefit or UC housing element)
• Utility bills (gas, electric, water)
• Food and household essentials
• Travel to work or medical appointments
• Clothing
• Medical and prescription costs
• Existing debt repayments (minimum payments only)
• Childcare costs not covered by benefits

The council compares household income and expenditure when assessing the application. Gather records that support the costs you include and follow the portal's evidence instructions.

What Evidence to Submit

Useful records to support the expenditure breakdown may include:

• Recent bank statements showing income and spending patterns
• Utility bills or direct debit schedules
• Proof of debt repayments (credit card statements, loan agreements)
• Any medical evidence if health costs are a significant factor

Be thorough and honest with the expenditure breakdown. Understate your costs and the council may decide you can afford the 23%. Overstate them and the council will spot inconsistencies against your bank statements.

What the CTHS Award Looks Like

If approved, the council credits your Council Tax account with the hardship amount. It reduces or eliminates your remaining balance for the period covered.

The CTHS has a cash-limited annual budget and awards are discretionary. Check the decision notice for the period covered and ask Sheffield what to do if your circumstances continue into the next financial year.

The award is not a cash payment. It is an account adjustment — your monthly instalments drop or disappear.

If Your Application Is Refused

If Sheffield refuses your CTHS application, submit a formal written grievance under Section 16 within one calendar month of the decision, through the council portal or by post to PO Box 1310, Sheffield S1 2SH. Sheffield has two calendar months to review the decision, respond, or adjust the award. If it upholds the refusal, you can appeal to the Valuation Tribunal for England within two months of the council's decision notice. If the council does not respond within two months, you can appeal after that response period expires, up to four months from your original grievance. The VTE appeal is free.

The Budget Reality

The CTHS has an annual allocation of approximately £2.4 million. It is cash-limited, and no further grants can be made once the budget is exhausted. Check current availability with the council when you apply.

Our Sheffield Council Tax Reduction guide includes a monthly budget worksheet designed specifically for CTHS applications — it walks you through every expense category the council wants to see.

See more England guides →