Cutting council tax benefit could hit one in four Kington families and local businesses, councillor says

Cutting a council tax benefit could affect one in four Kington families, a town councillor has said.

Councillor Bob Widdowson also warned that the impact would be felt by local shops and businesses as the people affected would have less money to spend.

He told the October meeting of Kington Town Council that Herefordshire Council is currently consulting on proposed changes to the Council Tax Reduction Scheme from April 2027.

The consultation is open until Wednesday, November 4.

Council Tax Reduction is a scheme to assist people on a low income with their Council Tax bill.

The amount of reduction you can claim will depend on your circumstances.

In February 2026, Council approved its CTRS for 2026/27. The current scheme helps working aged residents who are in most financial need, by reducing their Council Tax by up to 100%, irrespective of the Council Tax band that the property falls into.

In December 2015, the scheme was approved at 80% relief and remained unchanged until 2021/22 when it was increased to 100% in response to the impact of the national pandemic.

The scheme is means-tested. Support is calculated based on need and applicants are required to provide financial information to support their claim.

The overall cost of CTRS awarded to working age and pensioner claimants in 2026/27 is approximately £16.4 million per annum, supporting over 6,500 working age adults and 4,700 pensioners. The cost of this scheme is funded by all taxpayers in Herefordshire.

Herefordshire Council is considering changes to reduce the level of support to help balance the cost of the scheme for all Council Tax payers whilst continuing to support those in greatest need.

Councillor Widdowson said there are two options being considered reducing the scheme from 100 per cent to 80 per cent in 2027/28 so working age claimants would have to pay at least 20 per cent of their council tax bill, or reducing it to 50 per cent, so claimants would have to pay 50 per cent of their bills.

He said; “According to the Kington Services Study, Kington has one of the highest densities of low income benefit claimants in the county with nearly 25 per cent of its households receiving welfare or housing support.

“This suggests that there are approximately 140 to 220 active Council Tax Reduction cases across the parish.

“Under option one an 80 per cent reduction, a household previously paying nothing would have to find £400 a year. Under option two, a 50 per cent reduction, a household previously paying nothing would have to find £1,000 a year.

“I can't believe that they are considering cutting this significant benefit to the poorest people in our communities during a cost of living crisis with the potential knock-on effects it will cause.

“Benefits do not get saved they get spent and if these benefits are cut to a quarter of Kington's households that will affect local shops and businesses.”

Councillor Widdowson said at any meetings with Herefordshire Council this issue should be brought up and members should say it is something unacceptable in Kington.

“They tried it before and they realised the impact and they had to phase it in. Kington is one of the poorest areas of the county.”

Other members said Kington Primary School and Kington United Charities should be made aware too and Emma Hancocks, Chairman of Kington Chamber of Trade said she would raise it at the next meeting.

Kington Mayor Councillor Martin Woolford said the issue should also be placed on the November full council agenda for a formal discussion. Members noted the report and agreed to the actions proposed.

To take part in Herefordshire Council's consultation visit https://www.herefordshire.gov.uk/consultations/2026/september/council-tax-reduction-scheme-consultation/ by November 4