Council Tax Reduction Scheme consultation
This consultation opens 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.
Current Scheme
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 Di-minimus rule from £1.00 to £2.00
- To align Child Care Costs disregards with Universal Credit
How much does the CTR scheme cost
We award £9.8 million per year and there are roughly 8,000 households that receive this support, with roughly half being of working age.
The Council is introducing new premiums from 1 April 2025, including for those properties which are furnished but are not anybody’s main residence, commonly known as “second homes”. The additional income received from this could be used to support any of the above changes where there is a cost.