Date published: 2023-10-11 | Category: Council Tax, Focusing on prevention, Finance, Wellbeing support, Giving people a bigger say
Residents are being invited to have their say on proposed changes to the way Bath & North East Somerset Council calculates the level of support low-income households get with their council tax bill.
The Local Council Tax Support Scheme consultation runs until November 12 and asks residents to give their views on possible changes to the scheme which include disregarding the Housing and Childcare Costs of Universal Credit, the introduction of full support for the poorest households and changes to the weekly income allowances and percentage reductions which households can receive.
The aim is to re-align the amount of support provided to low-income households in B&NES, in particular people receiving Universal Credit who rent their homes or receive support for their childcare costs.
Councillor Mark Elliott, Cabinet Member for Resources, said “Council tax is a regressive tax and is not how this administration would choose to manage local taxation, but we have to work with the system we’re given and we’re determined to make it as fair as possible, particularly for those on the lowest incomes. We have reviewed the current rules which were introduced in 2017 and believe that there is a case for change, and we want residents to have their say. The proposed changes would ensure that support is allocated more evenly to residents, particularly those in rented accommodation, and those who pay for childcare. That is why we are consulting on changes to disregard the specific elements of Universal Credit which are for housing and childcare. These are costs which residents have actually incurred – it’s not optional expenditure.
“I want to be clear that this isn’t a cost-cutting exercise. In fact, our modelling suggests it may mean the council spending slightly more on council tax support overall. Whilst many residents, particularly the least well-off, will benefit from this proposed revision of the scheme, I understand that there would be some residents who will be negatively affected by these changes. We are writing to all those who are affected by the proposal and reminding anyone in financial crisis to contact the Welfare Support Team for help.”
The changes to the scheme will only affect residents who receive Council Tax Support and Universal Credit. Those who receive Council Tax Support and other benefits or are on a low income will not be impacted by these changes.
To give your views and to find out more about the proposed changes please visit the council’s website https://beta.bathnes.gov.uk/consultation-changes-council-tax-support/consultation-changes-council-tax-support .
If you are concerned about cost of living pressures, please visit the council’s Livewell pages for details about support you can receive https://livewell.bathnes.gov.uk/cost-living-support . You may also be able to get financial support from the council’s Welfare Support Team. Visit https://beta.bathnes.gov.uk/benefits to apply for help with food, bills, household items, school uniforms and the Household Support Fund.
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Note to editors
Local Council Tax Support (LTCS) helps low-income households with their council tax. Until 2012 the scheme was funded by central government, but since then local councils have had to fund it themselves and to devise their own schemes. One of the groups targeted for support is working-age people in receipt of Universal Credit. Currently around 4,000 Bath and North East Somerset households in this category are receiving this.
Our local scheme was last revised in 2017 when Universal Credit was in its early stages of rollout. The scheme offers support to this group split into bands based on weekly income. Council research shows that the way the banding takes account of the housing and childcare elements of Universal Credit may be leading to an unfair distribution of support.
A report on the Local Council Tax Support Scheme review and proposed changes which went before the Policy Development & Scrutiny Panel can be found here.