Shropshire Council Tax Hardship Fund and Section 13A

When Council Tax Reduction covers only 80% of your bill and you still can't afford the remaining 20%, Shropshire Council has a discretionary safety net most residents don't know about. Section 13A of the Local Government Finance Act 1992 gives the council power to reduce your Council Tax liability further — potentially to zero — but only in cases of exceptional hardship.

What Section 13A Discretionary Discount Is

This isn't part of the main Council Tax Reduction scheme. It's a separate discretionary power that lets Shropshire Council reduce or write off Council Tax for individual households facing severe financial difficulty. The key word is discretionary — there's no automatic entitlement, and the council funds the full cost of any discount it awards (unlike standard Council Tax Reduction, where the cost is shared with police and fire precepting authorities).

Because Shropshire Council bears 100% of the cost, they scrutinise applications carefully. The council's Section 151 Officer (the authority's chief financial officer) makes the decision, and there's a formal application process.

Who Can Apply

You can apply for a Section 13A hardship discount if you meet these conditions:

• You've already claimed all statutory discounts, exemptions, and Council Tax Reduction you're entitled to
• Despite those reliefs, you still can't afford the remaining Council Tax liability
• You can demonstrate exceptional financial hardship — not just tight finances, but a genuine inability to pay
• You've explored budget management options and other available support

The council expects you to have exhausted every other avenue first. If you haven't applied for Council Tax Reduction, or you're entitled to a Single Person Discount you haven't claimed, they'll send you back to do that before considering a hardship application.

The Application Process

You need to complete a formal application form and attach a comprehensive Income and Expenditure schedule — this is Appendix B of the council's Section 13A policy. The schedule requires a detailed breakdown of every pound coming in and every pound going out:

• All income sources (wages, benefits, UC, maintenance, any other receipts)
• All essential expenditure (rent/mortgage, food, utilities, travel to work, childcare, debt repayments)
• Evidence of each figure — bank statements, bills, payment records

The council isn't looking at whether you have a comfortable life. They're assessing whether, after essential expenditure, there's genuinely nothing left to pay Council Tax with. Spending on non-essentials (subscriptions, dining out, alcohol, tobacco) will be questioned and potentially deducted from your claimed expenditure.

How Long It Takes

There's no published processing time for Section 13A applications. The Section 151 Officer reviews the case on its merits, which can take several weeks. During the review period, your Council Tax bill remains legally due — the application doesn't pause collection action. If you're facing enforcement, tell the council's revenues team that a Section 13A application is pending and ask them to hold action.

If Your Application Is Refused

The appeal route for Section 13A is different from standard Council Tax Reduction disputes. If the Section 151 Officer refuses your application, you can appeal to the council's General Appeal Panel — a group of elected council members who review the decision independently.

If the General Appeal Panel also refuses, you can then appeal to the Valuation Tribunal for England. This is the external, independent stage — it's free to use and you don't need a solicitor.

Care Leavers Get Automatic Relief

Shropshire Council uses Section 13A to provide a defined class discount for care leavers. If you're aged 18 to 25, were formerly in the care of Shropshire Council (under a voluntary agreement or court order), and are liable for Council Tax within Shropshire, you can receive up to 100% discretionary relief.

This discount is applied after statutory discounts but alongside Council Tax Reduction, reducing your net liability to zero. Applications are coordinated through the council's Leaving Care Team (01743 254590 or [email protected]) — not through the standard revenues department.

When to Apply vs When to Seek Debt Advice

Section 13A is for people who genuinely can't pay. If you're behind on Council Tax because of temporary cashflow problems but your income will recover, a payment plan with the council's revenues team might be more appropriate. If you've received a court summons or liability order, you should contact free debt advice services — StepChange (0800 138 1111), National Debtline (0808 808 4000), or Citizens Advice Shropshire — before or alongside a Section 13A application. They can help negotiate with the council and assess whether other solutions apply.

Our Shropshire Council Tax Reduction Guide includes the income-and-expenditure worksheet format the council expects for Section 13A applications, plus step-by-step guidance on building your hardship case.

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