Wandsworth Council Tax Reduction Capital and Savings Limits

Two Capital Limits, Not One

Wandsworth's council tax reduction scheme uses two different capital thresholds depending on which scheme level you qualify for, and mixing them up is one of the fastest ways to assume you do not qualify when you actually do.

£6,000 limit — applies to working households (Schemes 4 and 5). If you or your partner have earned income, capital exceeding £6,000 disqualifies the household from those schemes.

£16,000 limit — applies to Schemes 1, 2, and 3. Scheme eligibility conditions still apply; capital of £16,000 or more disqualifies you from CTR.

What Counts as Capital

Capital in Wandsworth's scheme includes:

• Current account balances
• Savings accounts
• ISAs (cash and stocks and shares)
• Premium Bonds
• Stocks, shares, and investment funds
• Property you own other than your main home
• Land

Your primary residence — the home you live in and pay council tax on — is not counted.

Tariff Income Between £6,000 and £16,000

For non-earning households, capital between £6,000 and £16,000 does not automatically disqualify you, but it does reduce your award through something called tariff income. The council adds £1 per week to your assessed income for every £250 (or part of £250) above £6,000.

So if you have £8,500 in savings and no earnings, the council calculates: £8,500 minus £6,000 = £2,500. Divide by £250 = 10. That adds £10 per week of notional income to your assessment.

This tariff income applies to non-earning claimants with capital between £6,000 and £16,000. Claimants in Schemes 4 and 5 face the hard £6,000 cut-off with no taper.

Evidence the Council Needs

Wandsworth requires two consecutive months of statements for every bank account, building society account, and ISA you hold — including ones with a zero balance. Share certificates or investment platform statements must be current.

When you upload evidence, the council checks whether your capital at the date of claim falls below the relevant threshold. If you are close to a limit, the exact timing of when a payment clears or when you draw down savings can make the difference.

Common Mistakes

Forgetting joint accounts. If you apply as a couple, capital held in either partner's name or in joint accounts is aggregated.

Ignoring Premium Bonds. These count as capital even though you cannot spend them without cashing out. A £5,000 Premium Bond holding plus £1,500 in a current account puts a working household over the £6,000 limit.

Assuming any two months of statements are enough. Provide statements covering two consecutive months for all relevant accounts so the council can assess your capital.

The Wandsworth Council Tax Reduction guide includes a capital assessment worksheet and an evidence preparation checklist that covers exactly which statements to gather and how to present capital that sits close to the threshold.

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