Rotherham Council is inviting residents to share their views on potential changes to the Local Council Tax Support Scheme and council tax bills for second homes and empty properties.
The consultation, which runs from Monday 18 November 2024 to Friday 10 January 2025, asks for feedback on a range of options aimed at ensuring the scheme continues to support households on the lowest incomes while balancing the Council’s significant financial challenges.
The Local Council Tax Support Scheme, introduced in 2013 following the abolition of the nationwide Council Tax Benefit scheme, provides discounts on Council Tax bills based on household income and circumstances.
Pensioners are unaffected by this consultation, as their support is guaranteed under the National Council Tax Support Scheme, which provides discounts of up to 100%.
Currently, Rotherham’s scheme offers a maximum discount of 91.5% for working-age households. Since the 2020/21 financial year, the Council has also provided temporary top-up payments to eligible claimants. The continuation of this additional support remains under review.
Cllr Chris Read, Leader of Rotherham Council, said: “The Local Council Tax Support Scheme we’ve provided is a vital resource for many of our working-age residents, helping them through the cost-of-living crisis. We know that it provides more support than that offered in many other parts of the country, and from time to time we do need to review it to ensure that we’re best using the Council’s limited funding to help those who need it the most, including in the provision of other Council services. The consultation is your opportunity to help shape the future of council tax support and ensure we strike the right balance."
Proposed Changes to the Local Council Tax Support Scheme
The Council is consulting on four potential changes to the Local Council Tax Support Scheme for working-age residents:
- No change – maintaining the current scheme as it is.
- Changing the maximum discount – this would involve either increasing or decreasing the level of support provided.
- Altering non-dependent deductions – revising the contributions expected from other working adults in a household.
- Increasing the taper rate – changing the rate at which support is withdrawn as household income rises.
Residents are also encouraged to suggest alternative ways to manage the scheme’s costs.
The current scheme costs approximately £25.13 million annually, with £15.72 million allocated for working-age claimants. This total is shared between Rotherham Council and its preceptors, including Fire and Rescue, Police, and Parish Councils. Of this, Rotherham Council contributes £13.35 million each year.
In addition to consulting on changes to the Local Council Tax Support Scheme, the Council is also seeking views on proposed updates to its Council Tax empty homes and second homes premiums, made possible by legislative changes introduced in 2023.
At present, Rotherham applies a 100% Council Tax premium to properties that have been unoccupied and unfurnished for over two years. However, the new legislation allows councils to:
- Apply the premium after just one year instead of two.
- Charge a 100% premium on substantially furnished properties with no residents, such as second homes.
Rotherham Council is considering implementing the following changes:
- Introducing the 100% empty homes premium after one year from 1 April 2025.
- Applying the 100% second homes premium from 1 April 2026.
There are several exceptions to these premiums which come into effect from 1st April 2025, some of which are time limited. These include properties actively marketed for sale or let, annexes, properties undergoing major structural repairs, occupied caravan pitches and boat moorings, properties where probate has recently been granted, some seasonal homes, and those currently receiving a job-related discount.
How to participate
Residents can access detailed information about the consultation, including examples of how the proposed changes may impact different households, at www.rotherham.gov.uk/consultation-feedback/council-tax-support-consultation.
The consultation closes on Friday 10 January 2025, and feedback will inform the Council’s final decisions on both the Local Council Tax Support Scheme and Council Tax premiums for 2025/26 and 2026/27.
Find out more and have your say by completing the consultation online at rotherham.gov.uk/consultations.