Stratford-on-Avon District Council's Cabinet yesterday, Monday 7 November, agreed to implement a new Local Council Tax Reduction Scheme from April next year.
Government changes in 2013 meant that local authorities had to introduce their own council tax support scheme. Stratford District Council's own scheme has largely stayed the same with no change for current claimants and continuing to protect households on the lowest incomes as well as retaining all of the existing protections and providing additional support for war pensioners. The District Council mitigated any loss in funding by introducing changes to discounts and exemptions for second homes and long term empty properties.
In December the District Council took the decision to look at changes to the current scheme for long-term sustainability.
The Cabinet's decision will generate savings of around £59,000 a year and will only be asking for a 20% contribution towards Council Tax payments continuing to fund 80% of their payment.
This change does not impact on those pensioners who currently receive help towards their Council Tax.
The change relates to working age benefit recipients only, at present there are around 1,500 households who receive 100% Council Tax Support.
To help mitigate the impact upon the most financially vulnerable residents, it is proposed to introduce a council tax reduction hardship fund.
Cllr Dave Riches, Enterprise and Revenues Portfolio says: “The District Council has taken a measured approach in relation to the Local Council Tax Reduction Scheme, having utilised its savings for the past three years to subsidise the scheme.
“We have carried out a consultation and considered a range of factors before deciding whether to implement the proposed changes. The District Council recognised the impact that other welfare reforms being implemented could have on residents and kept the scheme unchanged until now.
“The new scheme will reduce the financial burden on the Council and the introduction of a hardship fund will provide a safety net for those vulnerable residents who are suffering severe financial hardship which affects their ability to pay Council Tax."
