Proposed changes to Council Tax Reduction Scheme from 1 April 2024
Feedback updated 8 Jul 2024
We asked
In 2023 we carried out a consultation on a proposal to make changes to the Council Tax Reduction Scheme from 1st April 2024.
You said
- Sometimes people struggle as their income is not enough for the month based on Universal Credit payments, and they have financial difficulties with how they pay their council tax bills.
- The Council Tax Reduction Scheme needs to be simpler for everyone with less changes to entitlement from month to month based on people’s circumstances. This sometimes causes confusion and stress as multiple letters and bills can be received during this time.
We did
The Feedback from the consultation was considered by cabinet on 18/01/2024 and the decision was made to approve the changes to the Council Tax Reduction Scheme. The reason for this is because
- Changes to the Council Tax Reduction Scheme can make it more straightforward for low-income households to budget household finances for Council Tax payments
- Reduce confusion for customers and lessen the amount of contact they receive, such as notification letters and Council Tax bills
- This will also reduce unnecessary work for the Benefits team and contact centre, allowing them to focus on other key areas of customer service
- It was also identified that these changes wouldn’t impact on vulnerable groups, many of whom rely on help from the Council Tax Reduction scheme.
Overview
The council is thinking about making changes to the local Council Tax Reduction scheme for people who are working but also receiving Universal Credit.
What is Council Tax?
Council Tax is money that people pay each year for each and every home in Sefton.
Sefton uses this money to pay for local services, such as:
- Schools
- Emptying bins
- Keeping the streets clean
- Street lights
What is Council Tax reduction (CTR)?
If you are on a low income, you can apply for Council Tax Reduction. This would mean that you pay less in Council Tax.
The Government makes the rules for how much Council Tax Reduction that low-income pensioners (people aged 66 or over) could get.
Sefton Council makes the rules for how much Council Tax Reduction that working age customers (under 66 years old) on a low income could get.
The rules that we have in Sefton for working age customers are contained in a document called our “local Council Tax Reduction scheme".
There are nearly 15,000 people in Sefton getting help with their Council Tax through Council Tax Reduction as they have a low income.
Sefton’s local Council Tax Reduction scheme contains rules for many different circumstances that people may have, including customers who are:
-
-
- Single
- Married or Living together as a couple.
- Have children
- Have other people living with them
- a carer
- Living with ill health or have a disability
- Working
- Looking for work
- Claiming Universal Credit
- Claiming other benefits or tax credits.
- Have other types of income (e.g. pensions)
-
What is Universal Credit
Universal Credit is a Government benefit paid to low income people that is paid by the Department for Works and Pensions and it helps people on a low income pay for
- Daily living costs for the customer and their family such as food and household bills.
- Housing costs such as rent, service charges or mortgage interest.
- Childcare costs
Most new benefit claims for people under the age of 66 will be for Universal Credit.
Please note that at the end of this survey, before submitting your results, you will be asked if you want to provide an email address so that you can receive a PDF copy of your response. This is completely optional. The email address is only used to send the email to you via the online consultation system provided by Delib as the data processor. The email address will not be stored with the responses and Sefton Council will not have access to it.
Why your views matter
We want to make it easier for customers to budget their money and make it less confusing for them to know how much Council Tax they need to pay.
We want to save the council money and help customers by telling them the right amount they must pay as soon as possible.
What happens next
The results of this consultation will be reported to the Council Members at a Cabinet meeting in January 2024 and will help to inform the Council’s approach to Council Tax Reduction from 1 April 2024.
The Cabinet recommendation will be considered by full Council at a meeting in January 2024.
Areas
- All Areas
Audiences
- Public
Interests
- Home page
Share
Share on Twitter Share on Facebook