Option 3: Increasing non-dependent deductions
The amount of Local Council Tax Support an applicant receives may reduce where they have other adults (other than their partner) living with them. These are known as non-dependent deductions and the amount of deduction, if any, depends on the non-dependents income. The expectation is that any non-dependent will contribute to the household expenditure as if they were renting or owning their own home.
The deductions have not changed since 2018 since when the earnings and benefits most non-dependents receive will have increased.
The current deductions are as follows.
| Category | Current Non-dependent deduction |
|---|---|
| Non-dependent in work | £10 per week |
| All other non-dependents | £5 per week |
An option would be to change these deduction amounts by
- Increasing the non-dependent deductions that currently apply, and
- Include in the scheme that they will increase each year linked to annual inflation.
There are times when a deduction does not apply regardless of the non-dependent’s income. This applies where an applicant meets certain disability criteria, and this would continue.
The benefits of doing this are:
- It would reduce the cost of the scheme.
- It may be considered fair as every adult household member is required to contribute towards the household costs.
The drawbacks of doing this are:
- The deduction for the non-dependent may fall on to the applicant, if the non-dependent does not contribute towards the household costs.
- It could lead to an increase in administration costs to recover the increased additional Council Tax.