Introduction
We are consulting on possible changes to our current Local Council Tax Support Scheme and Council Tax Premiums.
Annual Review of the Local Council Tax Support Scheme
We consider the Local Council Tax Support Scheme on an annual basis, although no significant changes to the scheme have been proposed since the scheme was last updated in 2018/19. During 2024/25 we have commenced a more detailed review of the scheme, this has found that the scheme is still very effective in providing valuable support to residents that are financially vulnerable and require that extra level of support in meeting their Council Tax bills.
Consultation on Proposed Changes
However, we do want to consult on some smaller changes to the scheme and we want to ensure we capture as many people’s views about this as possible before any decisions are made. That is why we need to hear from you what your views are.
Background Information
Since April 2013, when Council Tax Benefit was abolished, the way we have helped people on low income to pay Council Tax changed. From that date the nationwide Council Tax Benefit scheme ended, and councils were required to introduce their own local scheme, which here in Rotherham was called the Local Council Tax Support Scheme.
Current Scheme Details
The Local Council Tax Support Scheme works as a Council Tax discount. The level of discount is based on the household income and circumstances. Currently the maximum discount provided by Rotherham Council is 91.5 per cent of Council Tax for working age households which is higher than a lot of other similar local authorities. Pensioners are covered by the National Council Tax Support Scheme which councils cannot change and is not part of this consultation, and their maximum discount will remain at 100 per cent.
Since the financial year 2020/21 the Council has offered additional support to work-age Local Council Tax Support claimants through a top-up scheme. Up to £450.00 additional support was offered in 2020/21, £100.00 in 2021/22, £112.65 in 2022/23 and £117.60 in 2023/24. This additional top-up can however only be offered on a temporary basis and no decision has been made yet been made regards whether it will be offered in future financial years.
Financial Considerations
The Council has to be cautious in its approach to reviewing the Local Council Tax Support scheme, as whilst there is a desire to ensure that the scheme supports the most financially vulnerable residents, the Council has to fund the cost of these discounts. The Council like most Councils across the UK is facing significant financial challenges as a result of reduced resources/funding, increased demand pressures across social care services in particular and the impact of significant inflationary pressures seen in recent years. As such, the Council has to take any decisions on increasing or decreasing the scheme very carefully.
Current Status
We have maintained our current Local Council Tax Support Scheme unchanged since 2018 whilst many other authorities have reviewed the support that they offer working age claimants.
No decision has yet been made, and it is therefore important that you give us your views in this consultation.
