Council Tax Section 13a LGFA 1992

ONLY deal with the Council's SECTION151 OFFICER

What is a Section 13a Local Government Finance Act 1992 Discount?

Section 13A reductions

A reduction under Section 13A of the Local Government Finance Act 1992, or Section 13A as it is more often known, was initially introduced in England & Wales by way of Section 76 of the Local Government Act 2003. The relevant section of the regulations was later amended in 2012.

The key section which authorises the discretionary reduction is Section 13A(1)(c);

(1)The amount of council tax which a person is liable to pay in respect of any chargeable dwelling and any day (as determined in accordance with sections 10 to 13)—

(a)….

(b)….

(c)in any case, may be reduced to such extent (or, if the amount has been reduced under paragraph (a) or (b), such further extent) as the billing authority for the area in which the dwelling is situated thinks fit.

All Local Authorities must implement a Section 13A scheme through which any person can make a request for an amount of Council Tax to be reduced or written off. It should be noted that the local authority don’t have to grant any requests but they must have a system in place to allow a person to make the request.

The Local Authority has to make a judgement call as to whether the outstanding balance should be reduced or written off. This must be balanced against their overall duty to the Council Tax payer. What they shouldn’t do though is consider the application only on the basis of the financial cost to the Council Tax payer.

Not to be confused with the Council Tax Support / Reduction scheme

Each Local Authority must also implement a Council Tax Support / Reduction (CTR) scheme in addition to the Section 13A discretionary relief. The CTR schemes are dealt with under an amendment which was made to Section 13A of the Local Government Finance Act 1992 in 2012 and was introduced, with effect from April 2013, to replace the existing Council Tax Benefit scheme. It is however an entirely separate scheme to the Section 13A discretionary reduction and requires much more of a formalised application process.

It is possible to have part of your Council Tax paid under the CTR scheme and then request a Section 13A reduction be made to the remaining balance.

Valuation Tribunal appeals

If you feel that a request for Section 13A reduction has not been correctly considered by the local authority then you are in luck. A Valuation Tribunal case, headed by the President of the Tribunal, has previously determined that the Tribunal can hear appeals against a Section 13A reduction. The Valuation Tribunal can make a binding decision on the matter where they feel the Local Authority was wrong in their refusal to award a reduction or the amount they awarded is determined to be wrong.

Failure to provide information to the Local Authority

A request for a Section 13A reduction may require further information to be provided to a Local Authority. In case 4235M142393/254C the Valuation Tribunal found it entirely reasonable for the Local Authority to request details of income and expenditure before making a decision on eligibility for the reduction.

Limits on assistance for financial hardship

The joint case of SC & CW v East Riding of Yorkshire Council found that a local authority should be fair in their assessment. The Valuation Tribunal can override a local authority decision on entitlement to relief but also held that a local authority can reject an application if there is even a small amount of spare income. A similar case, reference 840M171013/084C, found that possession of sufficient assets to clear a debt may also be a valid reason for refusal.

Powers to reduce Council Tax for flooding etc

In addition to allowing discretionary reduction requests for financial hardship Section 13A allows a Local Authority to make a decision to reduce the Council Tax charge for a specific set of circumstances – this is most commonly used in situations where there has been flooding or severe damage/disruption caused by another significant event however some local authorities are using the scheme to cover groups such as ‘care leavers’.

Applying for a Section 13A reduction

Each Local Authority will have their own individual system through which they process a claim under Section 13A. The best way to check is to look at your Local Authority’s website or give them a call.

If they dismiss your application without good reason, you can APPEAL TO THE VALUATION TRIBUNAL.

[YOUR ADDRESS & POSTCODE]

[COUNCIL NAME ADDRESS & POSTCODE find it on: https://www.gov.uk/find-local-counci]

DATE: [THE DATE]

Dear [SECTION 151 OFFICERS NAME],

Account name: [YOUR NAME]

Account number: [COUNCIL TAX REFERENCE NUMBER]

Debt Collector reference: [REFERENCE IF YOU HAVE ONE]

I am sorry that I was unable to keep up payments towards my Council Tax Arrears from (date) My reasons for applying for a discretionary reduction are as follows:

[List any special factors relating to hardship or vulnerability e.g., medical conditions, disability, number of children and details of any vulnerable adults also living in the property]

I am asking you to review my Council Tax bill and see whether I owe this. And whether I could have received further help or reductions from the Council towards this bill. My application under Section 13a LGFA 1992 is separate to any entitlement I may have under the local council tax reduction scheme.

If I am liable and the above account is correct - I am willing to pay my council tax bill , but I cannot afford to pay this debt through an enforcement debt collection agency along with their punitive fees and charges.

I have attempted to deal with the the enforcement company sub-contracted by the Council but they are making unreasonable demands. I am also physically scared of their threatening behaviour. Especially with [STATE NUMBER OF CHILDREN IN THE HOUSE] young children in the house. If I paid them what they are asking - this will put me into further hardship and will have a knock-on effect on my ability to pay my current council tax , priority bills and debts.

I include the following evidence I wish you to consider:

[Include details of your income, expenditure and debts]

[Include copies of benefit letters, hospital letters, medical reports, information on saving and means, copies of letters in support of your case from other people]

I am making a formal request that the amounts owing are reduced or written off , which I understand the Council can consider under Section13A of the Local Government Finance Act 1992.

I also understand that the council can consider my current circumstances and my reasons - and see that this method of collecting this debt via an enforcement agency may not be suitable as stated under Department for Communities and Local Government’s Guidance to local councils on good practice in the collection of Council Tax arrears.

“4.5 Local Authorities should remain prepared to deal directly with individuals at any point. It is perfectly within their gift to call action back from the bailiffs at any time and where there is a case to do so they should consider such action.”

I have no assets to sell to help clear my debt and I have exhausted loans from family and friends. If possible please could you request that [DEBT COLLECTION COMPANY NAME] send the matter back to yourselves.

I am therefore asking you to consider my request as I cannot afford to pay this through the enforcement company . I am in no way refusing to pay but with my current financial situation, I have struggled to find money to pay this debt.

Please note: in the event you do not accept my application, I am entitled to appeal to the Valuation Tribunal England under section 16 of the Local Government Finance Act 1992.

Please provide a copy of your "Published" Debt Recovery Policy. or state reasons for not providing such document.

I hope we can come to an arrangement for the arrears to be resolved as soon as possible.

Naturally, I hope that you will award a discretionary reduction in my case but if you are unable to agree to this, please explain your reasons.

Thank you for your attention. I look forward to hearing from you within eight weeks of the date of this letter.

Yours faithfully,

[YOUR NAME]

More information on Section 13 Discounts

Do this before applying for a council tax write-off

1) Get details of your council tax arrears

Councils account for money in tax years, which run from April one year to March the next year. If you are getting letters from the council or a bailiff saying you owe £450, that may be your council tax debt for this tax year and you may also have arrears in previous years.

Unless you are 100% definite you only owe money for the one tax year, phone your council tax department and ask them for details of all the council tax years you owe money for.

2) Other reductions or benefits you may be entitled to

You can get a section 13A write-off in addition to claiming other reductions such as:

• the 25% single-person discount;

• your council’s normal Council Tax Reduction provisions for people on a low income;

• a Discretionary Housing Payment (DHP) to help with your rent costs not covered by Universal Credit or Housing Benefit.

Most councils expect you to have applied for all the other help you may be entitled to before making a Section 13A application. Your local Citizens Advice can advise what else you may be able to claim.

3) Find your council’s section 13A policy

If you apply for a reduction, the council has to consider your individual case. But councils should have a policy that covers how they make a decision. Knowing what this policy can help you write a better application.

Some councils explain their Section 13 A policy on their website. To find this is to use the search box on your council’s website and look for Section 13A or Discretionary Council Tax Reduction.

If you can’t find anything on their website, this doesn’t mean they don’t give section 13A reductions – they just don’t want people to know about them! So phone or email the council tax department and ask how to make an application for a Section 13A Discretionary Council Tax Reduction.

Read the policy carefully and think about how it applies to you.

If the council policy seems to dismiss your situation, talk to your local Citizens Advice. For example, some councils say you can only apply for a reduction/write-off for the current council tax year – that is wrong!

4) Get an Income & Expenditure statement

A good I&E is vital for making a successful application for a write-off. The aim is to show you don’t have enough money to make an arrangement to repay the council tax owing, which is why it should be written off.

You can use National Debtline’s Your Budget tool to draw one up. You can send a copy of this to your council with the section 13A application.

Your I&E should either be balanced with income and essential expenditure about equal, or it may be in deficit with your essential expenditure being larger than your income. It should not show a surplus, as the council would expect you to use that to pay the council tax.

It has to be accurate. You can’t increase some of the numbers so that your position looks worse! You must supply bank statements with your application so this will be obvious.

Expenditure to inessentials should be stopped. This includes not making any payments to non priority debts such as unsecured loans, credit cards, catalogues and your overdraft. If you are currently paying some of these, you need debt advice on stopping so that you have more money to pay to priority debts such as council tax.

If you are making changes, eg you are stopping paying a debt and a couple of subscriptions, then you can include a note with the I&E to say what you have done.

Your local Citizens Advice can help you sort out priority and non-priority debts. They can talk about your debt options and what expenditure may be accepted as “essential” by your council.

Making the Section 13A application

Using the council’s form

When the council provides a form, use it. When the council asks for specific evidence you must supply this. Some councils ask for your bank statements, payslips, benefit letters and/or an I&E sheet produced by a local advice agency.

If this seems intrusive, remember this is a discretionary reduction, so the council is entitled to ask for details about your finances. Your application is likely to be rejected if you don’t send this, and you won’t win an appeal.

When the council just says “send supporting evidence” without a list, you should attach an I&E sheet and your two most recent bank statements. If you have a partner who lives with you, attach their bank statements as well. If you have several bank accounts, send them all – you don’t want the council thinking you have another account with a lot of money in it!

Also include any other documents that may help explain your situation.

No form? Send an email

Don’t do this if your council provides a form for Section 13A applications. It just wastes time as the council will probably reply that you have to complete their form.

But if there is no form, you can email your application to the council tax department. NB send this to the Council's Section 151 Officer for your Council not just the Council Tax or benefits department.

TEMPLATE SECTION 13a REQUEST

Possible reasons why the council should write off tax

The basic reason why the council should write off your council tax is that your budget shows you do not have any money at all to pay the council tax after paying for your essentials.

But your application can also explain the cause of your problems and their effect on you and your family. Here are some examples – there may be other points that matter for you.

• A specific life event (redundancy, sickness, caring responsibilities, divorce, economic abuse, business failure, etc) may have caused your difficulties.

• If you could not get financial help because of Covid-19, explain why.

• If you have been badly affected by inflation in 2022, explain this. Perhaps you have a long commute to work to the petrol costs have been much higher. Or a mortgage fix may have ended and so you now have a much higher monthly payment.

• If you can afford to pay this year’s council tax, but not the arrears on previous years, point out that your budget has no surplus income and if you have to make payments towards previous years arrears, you won’t be able to pay this year’s tax.

• You may have to have a car because of getting the children to school or to be able to find a new job if there is no suitable public transport.

• Add if you have discussed your budget with an advice agency. A letter from the agency in support of your application could be helpful. That letter could mention if you have been getting help from a foodbank.

• If your health (or your partner’s or your children’s) is an important factor, a letter from your GP may be useful saying why this prevents you from working and if it is unlikely to improve in the next year. In particular if any health problems mean you have to have a warm house so your energy bills are very high.

• Say if making an arrangement to pay the council tax arrears would mean you are unable to pay your rent or mortgage. . When your benefits are reduced because of the benefit cap, or you are not able to claim benefits for a third child, or you have a bedroom tax penalty but there is no other accommodation you could move to, explain the strain this puts on your budget.

• If you have a mortgage and you are not yet getting any help through Universal Credit, or if the help is only being paid at a much lower interest rate, explain this.

• If you cannot move somewhere cheaper because of caring responsibilities, or you are in a house that is adapted for your needs, or your house is unsaleable eg because of cladding problems, explain this.

You don’t need to write a lot. The numbers are in your I&E, you are just giving an explanation.

The key points to make are about why your income is low, why your expenses are high, how you have tried to reduce them and whether your problems are likely to carry on.

Appeal to the Valuation Tribunal

The Valuation Tribunal considers all appeals about council tax matters. It is independent of your council and it is free to appeal to them.

You should make an appeal within two months of getting a rejection from your council (or when two months has passed without the council replying.)

If you don’t get a reply from your council in two months you could complain to the council. But this may delay taking your case to the independent Valuation Tribunal, so it may be better to send the appeal to the Valuation Tribunal straight away.

Reasons to appeal

Did you supply all the information the council asked for? If your application was rejected because you didn’t, you need to tackle that, not make an appeal.

You should appeal if:

• no reason was given for rejecting your application;

• the council seems to have applied a blanket policy such as “we only give reductions for the current year, not previous years” or “we do not give reductions to people who are in work” – they should have considered your specific case and whether you can pay the arrears;

• the council says it has used up all the allocated money for this sort of reduction – they are not allowed to limit their discretionary reductions in this way;

• the rejection is unreasonable, the council seems to have made a mistake or has ignored a key fact in your case.

If you are not sure, talk to a local debt adviser:

• they will be able to help you explain what to say on the appeal form;

• they may also be able to get your council to suspend enforcement such as debt collectors (they are not 'bailiffs' for Council Tax) while an appeal goes through.

The appeal process

The appeal process is described on the Valuation Tribunal for England website. (There is a separate website and procedures for Wales, see a local advice agency for help with this.)

You want the page for Appealing about liability – this is not the page for appeals about Council Tax Reduction.

In your appeal you need to explain what you think was wrong with your council’s decision and what you want the Tribunal to do – in your case, order the council to reduce or write off your council tax arrears.

If you think the council made a wrong decision, this is your chance to explain more clearly why you have no surplus income after paying for essential to make arrangements to pay the council tax. As with your application to the council, you can attach supporting evidence.

A local debt adviser will be able to help you with this.

You are more likely to win an appeal if you attend the hearing. The hearing is less formal than a court of law. You do not need a solicitor to represent you. A friend or adviser can attend with you.

Will this work?

Section 13A write-offs aren’t common because hardly anyone has heard of them! But in 2022 and 2023 these discretionary write-offs may be more used because so many people have major financial problems because of the cost of living.

I don’t know how likely your application is to be accepted by your council directly.

Maximise your chance by getting debt advice to put together a good budget and make sure you aren’t making payments to non-priority debts.

Your council may reject your section 13A application but find some other pot of money they can help you with. This would still be a good result for you!

The Valuation Tribunal says about 1 in 3 or 4 appeals are upheld. This is across all types of complaints, there aren’t any statistics for discretionary council tax reductions specifically.

Maximise your chance by talking to a debt adviser about your case and by attending the hearing.

Worrying about whether this will work is not a reason to delay trying if this is the best way forward for you!

TEMPLATE WHEN YOU FIND OUT :-

YOUR COUNCIL IS FUNDING TERRORISM!