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State pension: Britons urged to act as many miss out on council tax reduction

State Pension payments are understandably important to many retired people, especially for whom the sum forms a key source of income in later life. Payments are built up through the National Insurance contributions a person makes throughout their lifetime. To receive any state pension at all, Britons usually need 10 years of NI contributions, although these do not have to be consecutive.

Those who wish to unlock the full state pension sum, currently standing at £179.60 per week, will standardly need 35 years of contributions at the least. 

However, the Government has warned certain individuals may get less than the full state pension sum if they were contracted out before April 6, 2016. 

What some people are unaware of, however, is that they could be entitled to receive further help aside from their Department for Work and Pensions (DWP) payment.

Council Tax is a major payment and financial responsibility for many people who either own their own home or rent.

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If a person has reached state pension age and either they or their partner is in receipt of the guarantee part of Pension Credit, it is good news.

These individuals will be entitled to a full reduction on their Council Tax, with income and capital ignored by their local authority.

This could change, however, if individuals have another non-dependent adult living in their house.

In this circumstance, the amount someone gets through Council Tax Reduction could drop.

However, individuals who are in receipt of only the savings part of Pension Credit will have to be aware of different rules.

Citizens Advice, which helps people with a wide range of questions and queries with financial, housing and legal issues, offered further guidance.

It said: “If you only get the savings part of Pension Credit, but not the guarantee part, your local authority will use the Pension Service’s calculation of your income and capital to work out how much CTR you should get.”

“If your capital is more than £16,000, you won’t be entitled to CTR.”

The idea of “capital” is considered to be anything of monetary value a person owns, such as savings, ISAs, Premium Bonds and property owned. 

The amount of Council Tax Reduction a person gets is likely to vary from circumstance to circumstance.

As such, individuals are advised to contact their local authority to find out more about the rules in their area and whether they are entitled to support.

Thankfully, the Government has developed a tool to ease this process, which is accessible on their official website. 

All people will need to do is enter their postcode to be redirected to their local authority with specific rules for where they live.


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