We are reviewing our Council Tax Support scheme and want your views on proposed changes.
Council Tax Support helps people on low incomes pay their Council Tax. We are thinking about changing the scheme for working-age customers only.
Recent court cases have found that some Council Tax Support schemes may unfairly reduce support for people receiving Universal Credit, particularly disabled people and carers. The courts decided that some councils were counting certain income twice when working out support.
Because of these rulings, some councils are reviewing their schemes. We are proposing changes to make sure our scheme remains fair, follows the latest legal decisions and is easier to understand.
We want to know what you think before any decision is made. These proposals do not affect pension-age customers.
We want to hear from residents and interested organisations, including precepting authorities such as parish councils, the fire service and the police.
We must consult before making changes to the scheme. We will consider all responses before making a final decision.
Any proposed changes would not apply until 1 April 2027.
Since April 2013, councils have had to run their own Council Tax Support schemes for working-aged people. This replaced the old national Council Tax Benefit scheme.
Each Council has to decide how its own local scheme works for working-age customers. Pension-age customers are covered by national rules, which means their Council Tax Support will not be affected by these proposed changes. The proposals in this consultation would only apply to working-age customers.
You can find out about the current scheme and the changes that are proposed from this video, or by reading the information below
Our current scheme
Our current Council Tax Support scheme uses a detailed calculation. We look at things such as:
- Earnings
- State benefits
- Other income
- Childcare costs
Some types of income are ignored in full. Other types of income are only partly counted.
Under the current scheme
- We work out the total income for the resident and their partner
- We ignore some income when calculating support
- We compare the remaining income with income bands based on household size
This calculation decides how much Council Tax Support a person receives.
This can be difficult to understand and manage. It can also lead to different outcomes depending on whether someone receives Universal Credit, particularly if they rent their home.
Councils must keep their Council Tax Support schemes under review to make sure they are fair, up to date and meet legal requirements. This is why we are reviewing the scheme and asking for your views.
What we are proposing
We are proposing three options to the current scheme:
1) Simplify how income is assessed.
This would mean ignoring all Department for Work and Pensions income in full and only counting other income, such as earnings. We would compare the income we count against one set of income bands to decide how much support someone can receive. We would leave the maximum support at 80%.
2) Simplify how income is assessed and limit the maximum percentage of support to 60% and the maximum support to a Band D Council Tax level.
This would mean ignoring all Department for Work and Pensions income in full and only counting other income, such as earnings. We would compare the income we count against one set of income bands to decide how much support someone can receive. In addition, households in Council Tax Bands A to D will receive support up to a maximum of 60% of their council tax liability. Households in Council Tax Bands E and above will receive support up to a maximum of 60% of an equivalent Band D council tax liability.
3) Simplify how income is assessed, limit the maximum percentage of support to 50% and the maximum support to a Band D.
This would mean ignoring all Department for Work and Pensions income in full and only counting other income, such as earnings. We would compare the income we count against one set of income bands to decide how much support someone can receive. In addition, households in Council Tax Bands A to D will receive support up to a maximum of 50% of their council tax liability. Households in Council Tax Bands E and above will receive support up to a maximum of 50% of an equivalent Band D council tax liability.
Benefits of the proposed changes
The proposed changes are intended to:
- make the scheme easier to understand
- make the assessment process simpler
- make decisions more consistent and transparent
- make the scheme quicker and easier to run
What this could mean for anyone receiving Council Tax Support
Depending on their circumstances, the proposed changes could:
- increase the amount of Council Tax Support they receive
- reduce the amount of Council Tax Support they receive
- make little or no difference to their award
This will depend on their household income and circumstances.
Have your say
We want to know what residents, organisations, parish councils and other interested parties think about these proposed changes. Please complete the questions to give us your views.
Further Information
This survey can be made available in other languages or formats if required. To request another format, please contact us at:
Telephone: (01482) 393939
Email: Benefit.Assessments@eastriding.gov.uk
If you need help to complete this, you can make an appointment at any customer service centre and they will happily help you complete this questionnaire. To find your nearest customer centre, click on the link for a list of all East Riding Customer Service Centres.