New Working Age Council Tax Reduction Scheme agreed

At Full Council on 10 December 2024, councillors approved a new Council Tax Reduction Scheme (CTRS) for working age claimants which will help over 7,000 working age residents with their Council tax bills. The new CTRS will come into effect from 1 April 2025.

The Council is required to review its CTRS every year. Following extensive consultations and discussion with residents and other interested parties the new scheme aims to make it easier for working age people to apply and reduce the complexities following the introduction of Universal Credit. It will also ensure fairness across all those that are eligible for support and help reduce the significant administrative burden on the Council.

The working age CTRS assists low-income households to pay their Council Tax. It is means tested and, dependent on the household income, it can provide a discount of up to 85% of the household’s Council Tax bill. All those of working age claiming CTRS will be expected to pay at least 15% of their bill. If there is financial hardship because of the council tax charge, there is the safety net of a discretionary reduction scheme operated by the Council.

The new working age CTRS is more directly linked to Universal Credit, so that people receiving Universal Credit will automatically receive the appropriate Council Tax reduction, thus improving the speed of response for those that are eligible.

The new simplified scheme is based on income banded grid model.

It should be much easier for people to see if they are eligible for the range of discounts offered.

Councillor Bob Sleigh, Cabinet Member for Resources, said:

“Our Council Tax Reduction Scheme helps thousands of working age households across the borough. However, over time it has become complicated, especially since the introduction of Universal Credit.

“This new scheme is simpler, more efficient and will help people check their eligibility more easily. Also, working with information from the Department for Work and Pensions we have been able to streamline those eligible for Universal Credit so that they can receive the appropriate Council Tax reduction automatically.  

“With the cost-of-living crisis pushing more people into debt, the scheme will help support those on a low income as well as ensuring the Council continues to maintain its high Council Tax collection rates.”