Income and expenditure assessments
If you are struggling to pay your council tax, or have requested support through our council tax support exceptional hardship fund, we may ask you to carry out an income and expenditure assessment.
This helps us understand your financial situation and decide whether you need additional support.
About income and expenditure assessments
The assessment looks at:
- Your household income (such as wages, benefits, pensions or other income)
- Your essential living costs
- Your priority debts
We compare your income with your essential expenses to see whether you have enough money to meet your basic needs and priority financial commitments.
Essential living costs
Essential living costs are the everyday costs needed to maintain a reasonable standard of living. These may include things such as:
- Rent or mortgage payments
- Council tax
- Gas, electricity and water
- Food and household essentials
- Basic clothing
- Travel for work or essential activities
- Insurance and other necessary household costs
- Priority debts
Priority debts
Priority debts are debts where the consequences of not paying are more serious. These are debts where non-payment could result in legal action, loss of your home, loss of essential services or other significant consequences.
Examples of priority debts include:
- Council tax
- Rent or mortgage payments
- Gas and electricity arrears
- Water charges
- Court fines
- Child maintenance
Because of the consequences of non-payment, council tax must be treated as a priority debt.
Non-priority debts
Some debts are classed as non-priority debts. These usually include:
- Credit cards
- Store cards
- Personal loans
- Catalogues
- Payday loans
While these debts are still important, they do not usually carry the same immediate legal consequences as priority debts.
When we assess discretionary council tax relief, we cannot take non-priority debt repayments into account ahead of council tax. This means we will not award discretionary relief where a person has enough income to pay their council tax but is using that income to repay non-priority debts.
Getting help with non-priority debts
If you are struggling with non-priority debts, there is free and independent help available. Organisations such as Citizens Advice can support you to:
- Review your debts and create a budget
- Speak to creditors on your behalf
- Arrange affordable repayment plans
- Apply for a Breathing Space (temporary protection from creditor action)
- Explore options such as debt relief or write-offs where appropriate
When we may award discretionary relief
Discretionary council tax relief is intended for people who cannot afford to pay their council tax after covering essential living costs and priority debts.
If our assessment shows that you do not have enough income to meet these basic commitments, we may be able to award discretionary support.
How to apply
To apply, please fill out discretionary council tax relief application form.
Please send your completed form and evidence to revenues@lichfielddc.gov.uk and include discretionary council tax relief application in the title of your email.
To find out more please read our policy.