Council Tax
The Local Government Finance Act 2012 and Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Act 2018 amends the Local Government Finance Act 1992 allowing local discretion over the implementation of certain discounts and charges applied within the Council Tax regime. The following policy details the approach taken by Barnsley Metropolitan Borough Council with effect from 1st April 2021.
For Council Tax purposes, the revised legislation determines that the charge for empty dwellings will follow three phases.
First Phase: a period during which a dwelling may attract a discount of between 0% and 100% at the discretion of the local authority. 100% for landlords/property owners for the first month where this discount has not been applied within the last 6 months
Second Phase: a period during which the discount attracted may be between 0% and 50% at the discretion of the local authority. 0% for landlords/property owners for the first 2 years
Third Phase: an indefinite period starting when the dwelling has been empty for two years or more. In this phase, the liability may be increased by an additional premium. 100% increase for landlords/property owners for empty properties between 2-5 years, 200% increase for empty properties 5 years or more, 300% increase for empty properties 10 years or more
Barnsley Council have agreed that the following will apply from 1st April 2020
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Where a dwelling is unoccupied and substantially unfurnished
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The Council will apply a 1-month discount of 100%, where this discount has not been applied within the last 6 months, thereafter 0% discount will apply, requiring the full council tax charge to be paid
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Where a dwelling is unoccupied and substantially unfurnished, requiring or undergoing structural alterations or major repair works to make it habitable
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A 25% discount may be granted for up to one year. If a dwelling remains unoccupied and substantially unfurnished for a period of greater than one year, 0% discount will be given after the end of that year requiring the full council tax to be paid
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Where a dwelling remains unoccupied and substantially unfurnished for a period of 2 to 5 years
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The Council has agreed to implement a 100% additional premium, as allowed within Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Act 2018. Requiring 200% council tax to be paid
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Where a dwelling remains unoccupied and substantially unfurnished for a period of 5 years and more
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The Council has agreed to implement a 200% additional premium, as allowed within Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Act 2018. Requiring 300% council tax to be paid
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Where a dwelling remains unoccupied and substantially unfurnished for a period of 10 years and more
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The Council has agreed to implement a 300% additional premium, as allowed within Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Act 2018. Requiring 400% council tax to be paid
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Housing Benefits
Housing benefit is a national welfare benefit that helps people on a low income pay the rent for the home they live in.
- How we calculate Housing Benefits
- We use the Local Housing Allowance (LHA) rules to work out how much private rented tenants are entitled to. To calculate your tenant’s housing benefit/LHA payment, we consider their income, capital or savings, the size of their family, and the property they’re living in. Read more about who qualifies for Housing Benefit and how it is paid. We would usually pay the benefit straight into your tenant’s bank account.
- Paying Housing Benefit directly to you
- We may decide to pay your tenant’s housing benefit directly to you if they:
- Have more than 8 weeks rent arrears
- Have a history of rent arrears
- Don't use their housing benefit to pay their rent
- Have difficulties managing their finances
- Have received a reduction in their rent from you to keep help keep their tenancy
- If your tenants prefer their housing benefit paid straight to you, they can arrange for this to happen
- Tenants with more than eight weeks rent arrears
- If your tenants are more than eight weeks in arrears with their rent, you can ask us to pay their Housing Benefit directly to you
- We will need evidence of the amount of arrears, the number of weeks and the details of any action you have taken
- If your tenants Housing Benefit doesn't cover the full rent, they will have to pay the shortfall
- If you know that your tenant receives Housing Benefit, please contact us before taking any court action as we may be able to make future payments to you to avoid their eviction
- If your tenant moves out
- If we pay your tenants rent directly to you, you will need to tell us as and when they move out to prevent any overpayment
- Information we can share with you
- If we pay Housing Benefit directly to your tenant, we won't be able to discuss any of their details however if we pay you the Housing Benefit, we can share some information with you including details of their payments and details about any overpayment
Universal Credit
Universal Credit was set up as a single monthly payment for households to manage their own budget including rent, utilities, food and other outgoings.
- Paying Universal Credit directly to you
- If your tenant is experiencing rent arrears, you can apply for a ‘Managed Payment to Landlord’ using the ‘Apply for a Direct Rent Payment’ service
- This process is now completely online, and it does seem to be quicker than the old UC47 process. This process includes applying for future payments of rent along with rent arrears that they may have already accrued
- You can apply for a Managed Payment to Landlord (MPTL) if:
- Your tenant is in arrears with their rent (equal to or more than 2 months’ rent)
- A claimant has continually underpaid their rent over more than 2 months, and they have accrued arrears of an amount equal to or more than one months’ rent
- Any of the other Tier 1 and Tier 2 APA factors apply
- A claimant was previously in receipt of Housing Benefit and it was paid to their landlord, a MPTL can be considered providing the claimant continues to meet the Tier 1 or Tier 2 APA factors
Ring Before You Serve
If you have a tenant who is not paying their rent or is causing any problem that could lead to you ending their tenancy, now is a good time to get in touch. Our Housing Option’s focus is on the prevention of homelessness by working with landlords and tenants to avoid unnecessary and costly evictions.
We can offer:
- Advice around tenancy related matters to both you and your tenants
- Help to understand and navigate the benefit system
- Support to maximise your tenants income and help them budget
- Personalised help and support to help tenants pay their rent, including setting up rent repayment plans
- Help and advice to clear rent arrears
- Access to Tenancy Support Workers who can work with your tenant to help them take the steps needed to meet their obligations to you and avoid eviction
- Liaison between you and your tenant to help resolve disputes
Our services are free, and you can access them by emailing us or calling us on 01226 773959. When emailing us please include a brief overview of the circumstances you need help with and your contact details.
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