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Council Tax Reduction Scheme

Council Tax Reduction provides help for people on low incomes by reducing the amount of Council Tax payable.

Currently there are nearly 3,000 working age residents in receipt of Council Tax Reduction. The maximum reduction awarded is 80%.

Each year Full Council has to approve the Council Tax Reduction Scheme for the following year.

Where there are changes proposed, it is necessary for a public consultation to take place on any proposed changes.

The Council is looking to change its scheme from 1 April 2021 due to the following reasons:

  • The many Universal Credit (UC) changes that come through from the Department for Works and Pensions (DWP) mean the current scheme is now outdated as Council Tax Reduction has to be recalculated each time a change is reported.
  • Many councils have changed their schemes to income banded schemes with wide income bands to work with Universal Credit. Although full migration to Universal Credit is not expected before 2024, a year on year increase is expected each year until 2024.

Three income band models have been proposed and we want to hear what you think and which model you prefer.

  • Model 1 is a simple scheme made up of five income bands with a maximum of 80% as under the current scheme.
  • Model 2 is the same as Model 1 except for an additional 5% uplift to Council Tax Support for households in receipt of disability illness benefits in respect of the claimant or their partner (subject to a maximum level of support of 80%)
  • Model 3 is a further model but with a maximum support of 70%, except for households in receipt of disability or illness benefits which will have support uplifted by 10% to 80% in band 1.

For all models, a £5 per week deduction will be made from the weekly Council Tax liability where there is a non-dependent living in the household who is on out of work benefits.

Where there is a working non-dependant in the household, a £10 per week deduction will be made.

A non-dependant is an adult (over 18) living in the property who is not a partner, spouse, lodger or joint tenant.

Anyone who has capital (savings) of over £10,000 will not be eligible.

View background information on the models proposed.

The survey closed 2 October 2020.