Guidance

Local council tax support grant: distribution methodology note 2021 to 2022

Updated 12 August 2022

Applies to England

£670 million LCTS grant distribution methodology note (indicative allocations 2021-22)^{[footnote 1]}

1. Calculate the mean average of working-age local council tax support (LCTS) claimants in published statistics for Q1 & Q2 in 2020-21 in the billing authority area.

Source: LCTS live table (4th one down): 바카라 사이트˜Working Age바카라 사이트™ tab only^{[footnote 2]}

2. Calculate the ratio of the average bill per dwelling in the billing authority바카라 사이트™s area in 2020-21 to the average bill per dwelling in England in 2020-21 (£1,385.15) for billing authorities.

Source: Council tax per dwelling live table^{[footnote 3]}

3. Multiply the answer in step 1 with the answer in step 2 for each billing authority. Divide this answer by the sum of this calculation for all billing authorities. This gives the proportionate initial share of funding at billing authority level (summing to 1 for all billing authorities).

4. Multiply the proportion provided at step 3 by £670 million to get initial aggregate billing authority area allocations. These then need to be apportioned between billing and major precepting authorities in the area.

5. To apportion, calculate each authority in the billing authority area바카라 사이트™s share of the aggregate council tax requirement (바카라 사이트˜CTR바카라 사이트™) in the area for 2020-21^{[footnote 4]}. Use these proportions to distribute the billing authority level allocations from step 4 between each authority in the billing authority바카라 사이트™s area. Precepting authorities바카라 사이트™ final allocations are the sum of each allocation from their relevant billing authorities.

Source: CTR table, table 9.

6. The previous steps provide allocations at 2020-21 local authority geographies. This final step is only applicable for local authority restructures taking effect in 2021-22 and are as follows:

a. For the transfer of the fire functions of the Isle of Wight Council, and the Hampshire Fire and Rescue Authority (바카라 사이트˜the old FRA바카라 사이트™), to the new Hampshire and Isle of Wight Fire and Rescue authority (바카라 사이트˜the new FRA바카라 사이트™): using the same methodology as that for the proposed Alternative Notional Amounts (바카라 사이트˜ANA바카라 사이트™) for council tax agreed with the authorities concerned. This means that the Isle of Wight Council바카라 사이트™s allocation = (IoW council ANA / IoW council band D charge for 2020-21) * IoW council allocation based on 2020-21 geographies. The difference between IoW바카라 사이트™s council바카라 사이트™s allocation based on 2020-21 geographies less its adjusted allocation based on 2021-22 geographies, is allocated to the new FRA along with the old FRA바카라 사이트™s allocation.

b. For North and West Northamptonshire unitary authorities: each authority is given its respective shire district allocations and Northamptonshire County Council바카라 사이트™s allocation is split between the two on the basis of each new authority바카라 사이트™s share of the total tax base for the two new authorities, i.e. the sum of Northamptonshire바카라 사이트™s shire district tax bases^{[footnote 5]}.

1. Final allocations may be subject to minor revisions, for example to reflect changes in published statistics. They will also be subject to a grant payment rounding methodology to the nearest £1. ↩

2. Average of columns for Q1 & Q2 for 2020-21 i.e. columns AC and AE on tab 바카라 사이트˜Working Age바카라 사이트™. ↩

3. Tab 바카라 사이트˜Average per Dwelling바카라 사이트™ column AL for 2020-21. ↩

4. Using columns V & CA of 바카라 사이트˜Data바카라 사이트™ tab of CTR table 9, average council tax values are rounded to 2 decimal places before proportions of the total of these for the billing and precepting authorities in an area are calculated. ↩

5. Column T of 바카라 사이트˜Data바카라 사이트™ tab of CTR table 9. (Split is approx. 44.41% North / 55.59% West). ↩