Council Tax Reduction Scheme consultation - Have your say
Council Tax Reduction Scheme consultation
This consultation opened on 21 August 2024 and closes on 2 October 2024.
Council Tax Reduction (CTR) Scheme 2025/26 - Background information to the consultation.
What is Council Tax reduction?
Council Tax reduction is a discount for council tax and the amount given is based on the income and circumstances of the household.
Local authorities are responsible for setting up their own local Council Tax Reduction Schemes (CTR) for low income working age people. The scheme for Pension Age claims is set by Government and is not affected by any of the options set out in this consultation.
New Forest District Council's CTR scheme has been based on the former Council Tax Benefit (CTB) scheme with some changes (except those customers that are vulnerable). The current scheme includes a capital limit to £6,000, a minimum contribution of 10% and restricting the level of support to a Band D level of council tax.
Some people can still get 100% support - so they pay no council tax - if they are receiving certain disability benefits.
Our timetable
The Council is required to consult and formally adopt a scheme to commence on 1 April of that year.
Phases
Public consultation
Consultation on proposed changes
The Council Tax Reduction Scheme (CTR) helps residents on low incomes to pay their Council Tax.
The scheme helps roughly 8,000 households and costs around £9.8 million per year.
We can only makes changes to the working age scheme as the Council Tax Reduction scheme for pensioners is prescribed by government.
The Council Tax Reduction (CTR) Scheme is undergoing its annual review, and we invite you to share your views.
This is a legal requirement and aims to ensure that the scheme reflects the needs and preferences of our community.
The feedback we receive will help shape the support provided to households in need, ensuring fair and effective distribution of resources and that it effectively supports those who need it most.
We will use the information collected from this consultation to assist in making decisions on any changes to the Council Tax Reduction scheme from 1 April 2025.
We encourage everyone, including Council Tax payers, local organisations, and other stakeholders, to participate and share their thoughts.
The proposals
The Council is committed to safeguarding its vulnerable residents who need assistance with paying their Council Tax. We also want to ensure that those in work are better off. The Council is considering a change to the scheme from 1 April 2025 and this is explained in this consultation.
The proposed changes we are consulting on are:
- To remove the 10% minimum contribution
- To remove the band D cap
- To increase the De-minimus rule from £1.00 to £2.00
- To align Child Care Costs disregards with Universal Credit