New council tax support scheme in Telford set for approval

The main objective of the new scheme is to provide greater financial assistance to residents of working age, many of whom are on the lowest income.

A report to Telford & Wrekin Council's cabinet, which meets on January 2, says it has become increasingly apparent that customers in this group are struggling to afford their council tax contributions, which is pushing many into financial hardship.

The council currently provides council tax support to around 14,100 claimants, of which 8,331 are of working age.

The deployment of Universal Credit within the borough has also brought its own challenges and has resulted in the council needing to change its approach to council tax support.

The report says the current scheme is too reactive to very minor changes in an applicant’s income, leading to constant changes in council tax liability – resulting in numerous bills being generated for each household, which can be very confusing.

Following a public consultation earlier this year, the council is proposing to move to an income-based grid scheme, also known as a banded scheme.

This aims to rebalance the distribution of the available funding to ensure that the most financially deprived receive a greater level of support than the current scheme allows.

The majority of people who responded to the consultation were in favour of the proposed scheme.

When it is implemented, some customers will see an increase in the level of council tax support, which appears as a discount on the bill.

Others who will experience a reduction in such a discount from the changes will be offered further financial support from the council tax hardship fund.

The report says the proposed changes, however, represent a much fairer overall distribution of the funding available.

Councillor Lee Carter, Telford & Wrekin Council’s cabinet member for finance, said: “This is a fairer scheme that is both simpler to understand and administer.

"Most importantly, it will ensure those most in need will receive support.”

Councillor Raj Mehta, Telford & Wrekin Councils cabinet member for cohesion, added: “Our council tax hardship fund is also available for anyone directly impacted by these changes and who is genuinely struggling to pay their council tax contribution.

"We will be able to offer them targeted financial support plus advice.”

Currently 29 other councils operate a banded scheme similar to the one being proposed and it is thought that nearly 100 councils will be moving to such a scheme next year.

The report to cabinet recommends that members endorse the scheme.

If support is given, it would need to be adopted by full council in January before it can come into force in April.