Consultation on Council Tax Reduction Scheme
Overview
Each year the Council must decide whether to change the Council Tax Reduction Scheme (also known as Council Tax Support) for working-age applicants in its area.
What is Council Tax Reduction?
Council Tax Reduction is a discount on the amount of Council Tax charged. It reduces how much residents have to pay.
How much someone is entitled to is calculated by comparing the income and capital of the household with the amount of money they “need” to live on. This is known as “means testing” and is how other types of benefits are calculated such as Housing Benefit, Income Support and Universal Credit.
Some parts of the Council Tax Reduction scheme are set by Central Government e.g. how to appeal, some basic rules of entitlement such as whether people from abroad can claim etc.
Central Government also set all the rules regarding Council Tax Reduction for Pensioners, who may still receive a discount of up to 100%, dependent upon their household income and capital.
The Royal Borough is required to review their scheme for working age applicants each year to decide whether they wish to make any changes to it. Before any changes can be implemented, however, they must be subject to wide public consultation. This is why we are asking you to share your views through our online survey.
Further details on the Royal Borough’s Council Tax Reduction scheme can be found here: https://www.rbwm.gov.uk/home/council-tax-and-benefits/benefits/housing-benefit-and-council-tax-support
You can also check to see if you could qualify for this discount by undertaking a trial calculation here: https://rbwmclaims.teamnetsol.com/.
What changes are being proposed for the Council Tax Reduction Scheme for 2027/28?
There are two changes being proposed for the 2027/28 Council Tax Reduction scheme for working age applicants.
The changes are summarised below and would affect all working age applicants:
1. Increasing the maximum help available.
Currently, the maximum amount of Council Tax Reduction available for working age applicants is limited to 80% of the weekly Council Tax charge, even if they are on the very lowest income. This means that they must pay 20% of the weekly Council Tax charge. The proposal would be to increase the maximum from 80% to 100%.
This is different for pensionable age applicants who are entitled to up to 100% of the weekly Council Tax charge. The Council Tax Reduction scheme for pensionable age applicants is set by the Ministry of Housing, Communities and Local Government.
Modelling suggests that this would cost approximately £650k more to provide this support. This cost would be split between the council and the major preceptors i.e. Thames Valley Police and Berkshire Fire and Rescue Service.
2. All working age customers – annual uprating.
The second change proposed is primarily to ensure the scheme aligns to changes introduced to the national Housing Benefit scheme, where the rules are set by the Department of Work and Pensions or the pensionable age CTR regulations which are amended by the Ministry of Housing, Communities and Local Government.
This would be largely beneficial to customers and is in line with action taken each year since the scheme was introduced.
Who will these changes affect?
Working age households in the area who currently receive, or can apply for, Council Tax Reduction. Some applicants may be on Council Tax Reduction for the whole financial year while others will come on and off, depending upon their financial circumstances. There are currently 2,274 working age residents in receipt of CTR. This includes households where one partner is of working age and the other is of pensionable age as they would both be treated a being of working age. This aligns with Housing Benefit.
Pensionable age households, either single pensioners or couples who are both pensioners, will not be affected as Central Government prescribes the scheme relating to those households.
As CTR is a means tested benefit, based on an individual’s income and needs allowance, it is not possible to provide examples of how this may affect all applicants.
If anyone has specific concerns, not answered here, about their specific circumstances, please contact benefits@rbwm.gov.uk.
Will there be any further exemptions for working age Council Tax Reduction applicants?
We recognise that residents may struggle to meet the cost of their Council Tax charge and have considered introducing protection for certain groups who receive Council Tax Reduction.
However, the Council already has Discretionary Powers to reduce anyone’s Council Tax charge, whether in receipt of Council Tax Reduction or not, where they are suffering financial hardship. Further details on this may be found here: https://www.rbwm.gov.uk/sites/default/files/2021-08/ctax_discretionary_reduction_liability_policy.pdf
This would continue to offer protection for those most financially vulnerable. We believe this is fairer than only protecting certain groups of applicants, as it available for anyone who fits the criteria.
This also ensures that further complexity is not introduced into the administration of the Council Tax Reduction scheme which could increase costs.
Are there any alternatives to these proposals?
The council could look to maintain the level of support provided or reduce it further.
However, these changes are proposed in order to increase the level of support available to those of working age and simplify the administration of the current scheme by aligning it with Housing Benefit rules.
It will provide some protection for those most financially vulnerable and reduce arrears due which, in turn, will reduce the staff time to try and recover small amounts of debt.
In addition, if the scheme is not aligned with existing Housing Benefit changes, or if further complex arrangements such as protecting certain groups of people are introduced, this could mean increased administration costs generally.
Each year the council also receives details of Council Tax Reduction changes for Pensionable Age applicants from Central Government. These changes are usually provided in late December or early January. However, where appropriate, the Council wishes to mirror such changes in its working age scheme.
An example of this would be where a deduction from the maximum Council Tax Reduction is made because someone, other than the claimant or partner, lives in the house who is working and aged over 18. This is known as a “non-dependent deduction”. Deduction levels are set by Central Government for pensioners and the proposal is to mirror those for working age applicants.
Also, for working age Housing Benefit applicants, the Department of Work and Pension provides details of the new allowances for working age customers which change each April, such as the sums involved in calculating how much money someone “needs” to live on. It is proposed that these amounts are mirrored in the Council’s working age Council Tax Reduction scheme, as they have been since 2013.
Unfortunately, we cannot confirm the exact details of these changes as they are not yet available, but the links below are for the 2026/27 documents and may therefore provide some insight into the types of changes typically introduced:
- Council Tax Reduction Schemes (Prescribed Requirements) (England) (Amendment) Regulations 2020: https://www.legislation.gov.uk/uksi/2022/25/made
- Housing Benefit Uprating Details: https://www.gov.uk/government/publications/benefit-and-pension-rates-2026-to-2027
If you need any assistance to access or complete the online survey you can ask for help at any of the Royal Borough's libraries.
If you prefer to complete the survey in hard copy, a printable version can be found at the bottom of this page and can be returned to: Benefits Team, RBWM, Town Hall, St Ives Road, Maidenhead, SL6 1RF.