Council Tax Reduction - non-dependant deductions for pensioners
If you're entitled to Council Tax Reduction (CTR), your entitlement may be reduced if you have a non-dependent adult living with you. This is because the non-dependant is expected to contribute to your household expenses.
If you're a pensioner, there are specific rules about how non-dependants affect your entitlement to CTR. If you're not a pensioner you need to check your local authority's CTR scheme to see how your entitlement is affected if you have a non-dependant living with you.
Read this page to check if you have a non-dependant living with you and how this might affect your entitlement to CTR, if you're a pensioner.
Who is a non-dependant?
A non-dependant is an adult who lives with you. This doesn’t mean your partner or adult children who are still dependent on you – for example, because they are in education. It could be for example, an adult son or daughter who is working or unemployed and who still lives with you.
The following people are not classed as non-dependants, even if they live with you:
- your partner
- dependent children of you or your partner
- foster children
- anyone who is jointly responsible with you for the council tax - for example, a joint owner or tenant
- someone who lives with you to look after you or your partner and who is employed by a charity or voluntary organisation who charges for this service
- a boarder, sub-tenant or licensee.
Who is a pensioner?
When you claim CTR, you're considered to be a pensioner if you've reached the age for getting Pension Credit.
If you're under the age for getting Pension Credit, your local authority can decide its own rules about how non-dependent adults living in your household are treated. You will need to check your local authority's CTR scheme to find out what the rules are.
How much will be deducted for a non-dependant?
If you have a non-dependent adult living with you, the amount of CTR you get will be reduced. The amount your CTR is reduced by will depend on the circumstances of the adult living with you - on how many hours they work and how much gross income they earn.
The table below shows the amount which is taken off your CTR, depending on the circumstances of the adult living with you.
|Circumstances of the non-dependent adult||Amount deducted from your CTR|
|Not working or working less than 16 hours a week||£4.05|
|Working 16 or more hours a week with average gross income less than £217.00||£4.05|
|Working 16 or more hours a week with average gross income between £217.00 and £377.00 a week||£8.25|
|Working 16 or more hours a week with average gross income between £377.00 and £469.00 a week||£10.35|
|Working 16 or more hours a week with average gross income £469.00 a week or more||£12.40|
What counts as gross income?
Gross income is the amount you earn before tax and other things like national insurance are taken off.
When a local authority works out how much gross income a non-dependant adult earns, they shouldn’t count any of the following:
- Attendance Allowance
- the care component of Disability Living Allowance
- Personal Independence Payment
- Armed Forces Independence Payment
- payments made under certain charitable funds, such as the Eileen Trust or the Caxton Foundation
If you have a couple living with you
If you have a non-dependent adult couple living with you, only one deduction is made for both people. The deduction made is the highest that would have been made if they were treated as individuals. To decide which income band applies their joint income counts even if only one of them is working full-time
Your 25 year-old son Jamie and his girlfriend Maria live with you. Both of them are working. Jamie works 20 hours a week and earns £180. Maria works 22 hours a week and earns £200. The amount deducted from your CTR will be £10.35 a week.
Are deductions always made for non-dependent adults?
There are some circumstances when, even if a non-dependent adult lives with you, a deduction won’t be made from your CTR. This could depend on your circumstances, or those of the non-dependent adult.
A deduction won’t be made from your CTR, even if you have a non-dependant adult living with you if either you or your partner is:
- registered blind
- getting Attendance Allowance
- getting Disability Living Allowance care component
- the daily living component of Personal Independence Payment
- Armed Forces Independence Payment.
The non-dependent adult's circumstances
A deduction won’t be made from your CTR, even if you have a non-dependant adult living with you if the adult:
- is someone who isn't counted when the local authority works out who lives with you – for example someone who is currently in prison, or someone who is severely mentally impaired
- is a full-time student
- is a 16 or 17 year old
- is staying temporarily with you but normally lives somewhere else
- gets Income Support, Pension Credit, income-based Jobseeker's Allowance (JSA), income-related Employments and Support Allowance (ESA) or Universal Credit (UC) where the award is calculated on the basis that the adult has no earnings
- is doing youth training and getting a training allowance
- has been in hospital for more than 52 weeks
- is a member of the regular or reserve Armed Forces who is temporarily away on operations.
When you’re working out how long someone has been in hospital, you can add separate hospital stays together to make a stay of more than 52 weeks. You can only do this if the stays aren’t separated by intervals of more than 28 days.