Changes to Council Tax Reduction Scheme

At its meeting today (12 December), Kirklees Council’s Cabinet have considered changes to its Council Tax Reduction Scheme and made recommendations that will be put to Full Council (13 December).

The Council Tax Reduction scheme (CTRS) is the way the council helps people on low incomes pay their council tax bill.

The current scheme subsidises council tax payments for approximately 23,500 working age and 11,000 pension age households and costs the council approximately £35.5m per year. The council have also spent £8m this financial year from the Household Support Fund and other welfare provisions. The council cannot change the scheme that applies to pensioners, only the government could do that.

Due to inflationary pressures and demands on services, the council currently forecasts a budget gap of £47 million in its revenue budget for the next financial year. Extra demand for services like child protection and residential placements for children in care have been the main drivers for increased costs alongside social care for older people and residents with learning disabilities. Inflationary pressures on goods such as food for school catering services and IT equipment are also driving up costs for the council.

The recommended option for changes to the CTRS could, if approved by councillors, reduce the cost of the scheme by up to £4.33m per year.

At an earlier meeting, the council’s cabinet approved a public consultation on the proposed changes. The consultation ran from 16 August to 11 October. Cabinet have taken into account the response to the consultation when making their recommendations to full council.

Councillor Graham Turner, Cabinet Member for Finance and Regeneration, said:

“In these challenging times, that we are facing due to the underfunding of local government and the lack of a fair funding policy, we are committed to protecting our most vulnerable residents whilst ensuring that support is equitable and realistic.

"The decision to change our provision for council tax reduction is not one we have taken lightly, however.

“Our council tax reduction scheme currently provides more support than any other West Yorkshire Local Authority and, even with the potential changes, will remain better or in line with others. The proposed changes could mean that millions of pounds of taxpayers’ money can be redirected to other vital council services and on providing continuing support for our lowest income households.

“There are already provisions in place for those in severe hardship and that support will continue.”